Luk Hing Entertainment Group Holdings (HKSE:08052) ROC %: -10.20% (As of Jun. 2025)

What is Luk Hing Entertainment Group Holdings ROC %?

Luk Hing Entertainment Group Holdings HKSE:08052 ROC % is -10.20% as of Jun. 2025. The stock has 3 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 %. Luk Hing Entertainment Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was -10.20%.

As of today (2026-06-28), Luk Hing Entertainment Group Holdings's WACC % is 4.80%. Luk Hing Entertainment Group Holdings's ROC % is -12.36% (calculated using TTM income statement data). Luk Hing Entertainment Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Luk Hing Entertainment Group Holdings (HKSE:08052) 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, Luk Hing Entertainment Group Holdings's WACC % is 4.80%. Luk Hing Entertainment Group Holdings's ROC % is -12.36% (calculated using TTM income statement data). Luk Hing Entertainment Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

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.

Luk Hing Entertainment Group Holdings ROC % Related Terms

Luk Hing Entertainment Group Holdings ROC % Historical Data

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The historical data trend for Luk Hing Entertainment Group 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.

Luk Hing Entertainment Group Holdings ROC % Chart

Luk Hing Entertainment Group Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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-21.20

-23.10

-33.70

-2.30

-15.42

Luk Hing Entertainment Group Holdings Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25
ROC %	Get a 7-Day Free Trial															0.02	-4.98	-11.00	-14.51	-10.20

Luk Hing Entertainment Group Holdings ROC % Calculation

Luk Hing Entertainment Group Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	-6.872 * ( 1 - 0% )	/	( (44.789	+	44.324)	/ 2 )
=	-6.872	/	44.5565
=	-15.42 %

where

	Invested Capital		(A: Dec. 2023 )
=	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	))
=	22.949	-	12.903	-	( 0.846	-	max(0, 43.151	-	8.408	+	0.846	))
=	44.789

	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	))
=	25.549	-	25.597	-	( 3.972	-	max(0, 53.404	-	9.032	+	3.972	))
=	44.324

Luk Hing Entertainment Group Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2025 is calculated as:

	ROC % (Q: Jun. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2024 )	+	Invested Capital (Q: Jun. 2025 ))	/ count )
=	-4.202 * ( 1 - 0% )	/	( (44.324	+	38.098)	/ 2 )
=	-4.202	/	41.211
=	-10.20 %

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	))
=	25.549	-	25.597	-	( 3.972	-	max(0, 53.404	-	9.032	+	3.972	))
=	44.324

	Invested Capital		(Q: Jun. 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	))
=	16.124	-	21.511	-	( 0.75	-	max(0, 47.974	-	4.489	+	0.75	))
=	38.098

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

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -10.20% mean?

Luk Hing Entertainment Group Holdings (HKSE:08052) has a ROC % of -10.20% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Luk Hing Entertainment Group Holdings and its competitors.

Is Luk Hing Entertainment Group Holdings' ROC % too high?

Luk Hing Entertainment Group Holdings' current ROC % is -10.20%.

How does Luk Hing Entertainment Group Holdings' ROC % compare to LVS and MGM?

Luk Hing Entertainment Group Holdings' ROC % of -10.20% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.76. 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 Travel & Leisure company?

The median ROC % among Travel & Leisure companies is 3.76, based on 835 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. 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 Luk Hing Entertainment Group Holdings and its competitors. For the Travel & Leisure industry, the median ROC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luk Hing Entertainment Group Holdings's current ROC % is -10.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Luk Hing Entertainment Group Holdings stock overvalued right now?

Luk Hing Entertainment Group Holdings (HKSE:08052) has a current ROC % of -10.20%. The stock's GF Value™ is HK$0.04, compared to a current price of HK$0.04 — trading 2.5% above its estimated fair value. The current ROC % is -10.20%. 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 Luk Hing Entertainment Group Holdings (HKSE:08052), the current ROC % is -10.20% as of Jun. 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.

Luk Hing Entertainment Group Holdings Business Description

Industry Consumer Cyclical Travel & Leisure

Comparable Companies HKSE:08308 HKSE:01680 HKSE:00070 LVS HKSE:00027 HKSE:01928 MGM WYNN STC:VPL BYD CZR SGX:G13 HKSE:02282 MTN HGV XPAR:BAIN HKSE:01128 RRR BOM:544325 VAC

Address 87 Hung To Road, Unit 3C, 3rd Floor, Yue Xiu Industrial Building, Kwun Tong, Kowloon, HKG

Website https://www.lukhing.com

Luk Hing Entertainment Group Holdings Ltd is an investment holding company. It is engaged in the food and beverage and entertainment industry. The company's principal activities are the operation of clubs and restaurants, organizing music-related featured events as well as granting loans to entities in the food and beverage and entertainment industry. It generates its revenue in the form of sponsorship income, entrance fee income, loan interest income, and sale of food, beverage, and other products. Geographically, the company generates a majority of its revenue from Hong Kong.