China Shengmu Organic Milk (HKSE:01432) ROCE %: -12.16% (As of Dec. 2025)

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HKSE:01432 China Shengmu Organic Milk Ltd HKSE:01432
49 GF Score
Price HK$0.38
GF Value HK$0.25
Valuation Significantly Overvalued
! 6 Warning Signs
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What is China Shengmu Organic Milk ROCE %?

China Shengmu Organic Milk HKSE:01432 +5.56% 49 ROCE % is -12.16% as of Dec. 2025. GuruFocus rates HKSE:01432 with a GF Score™ of 49/100 and a GF Value™ of HK$0.25 (Significantly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. China Shengmu Organic Milk's annualized ROCE % for the quarter that ended in Dec. 2025 was -12.16%.

China Shengmu Organic Milk  (HKSE:01432) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

China Shengmu Organic Milk ROCE % Related Terms

China Shengmu Organic Milk ROCE % Historical Data

* Premium members only.

The historical data trend for China Shengmu Organic Milk's ROCE % 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.

China Shengmu Organic Milk ROCE % Chart

China Shengmu Organic Milk Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.10 10.40 2.79 -0.28 -6.16

China Shengmu Organic Milk Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.83 -4.31 3.66 -0.98 -12.16
HKSE:01432
49GF Score
China Shengmu Organic Milk Ltd HKSE:01432
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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China Shengmu Organic Milk ROCE % Calculation

China Shengmu Organic Milk's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=-369.195/( ( (9037.045 - 2817.75) + (8807.829 - 3042.037) )/ 2 )
=-369.195/( (6219.295+5765.792)/ 2 )
=-369.195/5992.5435
=-6.16 %

China Shengmu Organic Milk's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=-680.9/( ( (8774.414 - 3339.921) + (8807.829 - 3042.037) )/ 2 )
=-680.9/( ( 5434.493 + 5765.792 )/ 2 )
=-680.9/5600.1425
=-12.16 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

* 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 ROCE % →
What does a ROCE % of -12.16% mean?
China Shengmu Organic Milk (HKSE:01432) has a ROCE % of -12.16% as of Dec. 2025.
Is China Shengmu Organic Milk's ROCE % too high?
China Shengmu Organic Milk's current ROCE % is -12.16%. Overall, China Shengmu Organic Milk has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Shengmu Organic Milk's ROCE % compare to ADM and BG?
China Shengmu Organic Milk's ROCE % of -12.16% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROCE % is 8.89. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Consumer Packaged Goods company?
The median ROCE % among Consumer Packaged Goods companies is 8.89, based on 1,942 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Consumer Packaged Goods industry, the median ROCE % is 8.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Shengmu Organic Milk's current ROCE % is -12.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Shengmu Organic Milk stock overvalued right now?
Based on GuruFocus' analysis, China Shengmu Organic Milk (HKSE:01432) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.25, compared to a current price of HK$0.38 — trading 52% above its estimated fair value. The current ROCE % is -12.16%. China Shengmu Organic Milk's overall GF Score™ is 49/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For China Shengmu Organic Milk (HKSE:01432), the current ROCE % is -12.16% 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 Shengmu Organic Milk (HKSE:01432) Overvalued in 2026?

Based on GuruFocus' analysis, China Shengmu Organic Milk stock appears to be overvalued. The current stock price of HK$0.38 is trading 52% above its estimated GF Value™ of HK$0.25. GuruFocus considers China Shengmu Organic Milk to be Significantly Overvalued.

Key valuation signals for HKSE:01432:

  • ROCE %: -12.16%
  • GF Value™: HK$0.25 vs. price of HK$0.38 (52% above fair value)
  • GF Score™: 49/100 with 6 warning signs

No single metric tells the full story. See the HKSE:01432 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

China Shengmu Organic Milk Business Description

Address Food Industry Park, Inner Mongolia Autonomous Region, Deng Kou County, Bayannur, CHN
China Shengmu Organic Milk Ltd is an organic dairy company in China. The company, through its subsidiaries, is engaged in the production and distribution of raw milk and dairy products. It operates in a single segment, which is the Sale of raw milk. The company's income is mainly derived from its business activities in Mainland China.
49GF Score

Get the complete analysis for HKSE:01432

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

HK$0.38
Price
HK$0.25
GF Value