Chuangxin Industries Holdings (HKSE:02788) ROC %: 15.26% (As of Dec. 2025)

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HKSE:02788 Chuangxin Industries Holdings Ltd HKSE:02788
17 GF Score
Price HK$17.59
! 2 Warning Signs
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What is Chuangxin Industries Holdings ROC %?

Chuangxin Industries Holdings HKSE:02788 +2.87% 17 ROC % is 15.26% as of Dec. 2025. GuruFocus rates HKSE:02788 with a GF Score™ of 17/100. The stock has 2 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Chuangxin Industries Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 15.26%.

As of today (2026-08-29), Chuangxin Industries Holdings's WACC % is 9.12%. Chuangxin Industries Holdings's ROC % is 15.26% (calculated using TTM income statement data). Chuangxin Industries Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Chuangxin Industries Holdings  (HKSE:02788) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Chuangxin Industries Holdings's WACC % is 9.12%. Chuangxin Industries Holdings's ROC % is 15.26% (calculated using TTM income statement data). Chuangxin Industries Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Chuangxin Industries Holdings ROC % Related Terms


Chuangxin Industries Holdings ROC % Historical Data

* Premium members only.

The historical data trend for Chuangxin Industries Holdings's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Chuangxin Industries Holdings ROC % Chart

Chuangxin Industries Holdings Annual Data
Trend Dec22 Dec23 Dec24 Dec25
ROC %
7.66 9.53 17.21 15.26

Chuangxin Industries Holdings Semi-Annual Data
Dec22 Dec23 Dec24 Dec25
ROC % 7.66 9.53 17.21 15.26
HKSE:02788
17GF Score
Chuangxin Industries Holdings Ltd HKSE:02788
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Chuangxin Industries Holdings ROC % Calculation

Chuangxin Industries Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=4706.191 * ( 1 - 16.14% )/( (21279.987 + 30453.922)/ 2 )
=3946.6117726/25866.9545
=15.26 %

where

Invested Capital(A: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=19559.557 - 3568.885 - ( 706.906 - max(0, 9329.596 - 4040.281+706.906))
=21279.987

Invested Capital(A: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=31317.764 - 5642.29 - ( 5681.314 - max(0, 16413.199 - 11634.751+5681.314))
=30453.922

Chuangxin Industries Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=4706.191 * ( 1 - 16.14% )/( (21279.987 + 30453.922)/ 2 )
=3946.6117726/25866.9545
=15.26 %

where

Invested Capital(Q: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=19559.557 - 3568.885 - ( 706.906 - max(0, 9329.596 - 4040.281+706.906))
=21279.987

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=31317.764 - 5642.29 - ( 5681.314 - max(0, 16413.199 - 11634.751+5681.314))
=30453.922

Note: The Operating Income data used here is one times the annual (Dec. 2025) data. The tax rate is limited to between 0% and 100%.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of 15.26% mean?
Chuangxin Industries Holdings (HKSE:02788) has a ROC % of 15.26% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Chuangxin Industries Holdings and its competitors.
Is Chuangxin Industries Holdings' ROC % too high?
Chuangxin Industries Holdings' current ROC % is 15.26%. Overall, Chuangxin Industries Holdings has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Chuangxin Industries Holdings' ROC % compare to AA and CENX?
Chuangxin Industries Holdings' ROC % of 15.26% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Chuangxin Industries Holdings and its competitors. Chuangxin Industries Holdings's current ROC % is 15.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chuangxin Industries Holdings stock overvalued right now?
Chuangxin Industries Holdings (HKSE:02788) has a current ROC % of 15.26%. The current ROC % is 15.26%. Chuangxin Industries Holdings' overall GF Score™ is 17/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Chuangxin Industries Holdings (HKSE:02788), the current ROC % is 15.26% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Chuangxin Industries Holdings Business Description

Address Zone C Southwest Industrial Park, Inner Mongolia, Huolinguole, CHN
Chuangxin Industries Holdings Ltd is an investment holding company. The company, along with its subsidiaries, is principally engaged in the production and sales of electrolytic aluminum and alumina in the People's Republic of China (PRC), focusing on alumina refining and aluminum smelting within the upstream of the aluminum industry chain. The company operates in two segments: i) Electrolytic Aluminum Business: Production and sales of aluminum ingots and liquid aluminum, ii) Alumina Business: Production and sales of alumina and other related types of products. The majority of its revenue is generated from the Electrolytic Aluminum Business.
17GF Score

Get the complete analysis for HKSE:02788

ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$17.59
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