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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. China Golden Classic Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 10.91%.
As of today (2026-08-17), China Golden Classic Group's WACC % is 1.73%. China Golden Classic Group's ROC % is 3.27% (calculated using TTM income statement data).
China Golden Classic Group 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.
China Golden Classic Group (HKSE:08281) 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, China Golden Classic Group's WACC % is 1.73%. China Golden Classic Group's ROC % is 3.27% (calculated using TTM income statement data).
China Golden Classic Group 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.
* 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.
Note:
The Operating Income data used here is two times the semi-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.
China Golden Classic Group (HKSE:08281) has a ROC % of 10.91% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China Golden Classic Group and its competitors.
Is China Golden Classic Group's ROC % too high?
China Golden Classic Group's current ROC % is 10.91%. The Consumer Packaged Goods industry median ROC % is 5.31. China Golden Classic Group's value of 10.91% is 105.5% above this industry median. Overall, China Golden Classic Group has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Golden Classic Group's ROC % compare to PG and CL?
China Golden Classic Group's ROC % of 10.91% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.31. China Golden Classic Group's value of 10.91% is 105.5% above this benchmark. 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.31, based on 1,947 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. China Golden Classic Group's current ROC % of 10.91% is 105.5% above the industry median. 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 China Golden Classic Group and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Golden Classic Group's current ROC % is 10.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Golden Classic Group stock overvalued right now?
Based on GuruFocus' analysis, China Golden Classic Group (HKSE:08281) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.12, compared to a current price of HK$0.30 — trading 145.8% above its estimated fair value. The current ROC % is 10.91% and 105.5% above the Consumer Packaged Goods industry median of 5.31. China Golden Classic Group's overall GF Score™ is 44/100 with 5 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 China Golden Classic Group (HKSE:08281), the current ROC % is 10.91% 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.
Is China Golden Classic Group (HKSE:08281) Overvalued in 2026?
Based on GuruFocus' analysis, China Golden Classic Group stock appears to be overvalued.
The current stock price of HK$0.30 is trading 145.8% above its estimated GF Value™ of HK$0.12.
GuruFocus considers China Golden Classic Group to be Significantly Overvalued.
Key valuation signals for HKSE:08281:
ROC %: 10.91%
GF Value™: HK$0.12 vs. price of HK$0.30 (145.8% above fair value)
Industry Position: 105.5% above the Consumer Packaged Goods median
No single metric tells the full story. See the HKSE:08281 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Golden Classic Group Ltd is a daily household product producer in China. The company focus on the production and sales of oral care products, include functional toothpastes, household products and leather care products. The company's reportable segment are: The Oral Care Products segment involves manufacturing and selling of oral care products including functional toothpaste, mouthwash, oral spray, and toothbrush; The Leather Care Products segment offers leather shoe care products and leather clothing care products; and The Household Hygiene Products segment comprises household hygiene products such as surface cleaners, laundry care products, toilet care products, and mould proof products. All of the group's operations are mainly located in the PRC.
44GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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