ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Hang Lung Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 1.84%.
As of today (2026-06-25), Hang Lung Group's WACC % is 3.02%. Hang Lung Group's ROC % is 1.66% (calculated using TTM income statement data).
Hang Lung Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hang Lung Group (OTCPK:HNLGF) 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, Hang Lung Group's WACC % is 3.02%. Hang Lung Group's ROC % is 1.66% (calculated using TTM income statement data).
Hang Lung Group 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.
Hang Lung Group ROC % Related Terms
Hang Lung Group ROC % Historical Data
* Premium members only.
The historical data trend for Hang Lung Group'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.
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.
Hang Lung Group (HNLGF) has a ROC % of 1.84% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hang Lung Group and its competitors.
Is Hang Lung Group's ROC % too high?
Hang Lung Group's current ROC % is 1.84%. The Real Estate industry median ROC % is 2.19. Hang Lung Group's value of 1.84% is 16% below this industry median. Overall, Hang Lung Group has a GF Score™ of 62/100, reflecting its overall financial health beyond just this single metric.
How does Hang Lung Group's ROC % compare to CBRE and BEKE?
Hang Lung Group's ROC % of 1.84% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.19. Hang Lung Group's value of 1.84% is 16% below 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 Real Estate company?
The median ROC % among Real Estate companies is 2.19, based on 1,757 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. Hang Lung Group's current ROC % of 1.84% is 16% below 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 Hang Lung Group and its competitors. For the Real Estate industry, the median ROC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hang Lung Group's current ROC % is 1.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hang Lung Group stock overvalued right now?
Hang Lung Group (HNLGF) has a current ROC % of 1.84%. The stock's GF Value™ is $1.50, compared to a current price of $1.94 — trading 29.3% above its estimated fair value. The current ROC % is 1.84% and 16% below the Real Estate industry median of 2.19. Hang Lung Group's overall GF Score™ is 62/100 with 7 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 Hang Lung Group (HNLGF), the current ROC % is 1.84% 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 Hang Lung Group (HNLGF) Overvalued in 2026?
Based on GuruFocus' analysis, Hang Lung Group stock appears to be overvalued.
The current stock price of $1.94 is trading 29.3% above its estimated GF Value™ of $1.50.
Key valuation signals for HNLGF:
ROC %: 1.84%
GF Value™: $1.50 vs. price of $1.94 (29.3% above fair value)
Industry Position: 16% below the Real Estate median
No single metric tells the full story. See the HNLGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hang Lung Group Ltd is an investment holding company. Through its subsidiaries, it is engaged in property development for sales and leasing, property investment for rental income, and other investments. The Group also operates in property management, and through its joint ventures, is involved in the provision of dry and laundry cleaning services. Its reportable segments are Property Leasing, Hotels, and Property Sales. Maximum revenue is generated from the Property Leasing segment, which includes leasing of a portfolio of commercial, office, and residential properties in Mainland China and Hong Kong. Geographically, the Group generates maximum revenue from the Chinese Mainland and the rest from Hong Kong.
62GF Score
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