LH Group (HKSE:01978) ROCE %: 5.93% (As of Dec. 2025)

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HKSE:01978 LH Group Ltd HKSE:01978
61 GF Score
Price HK$0.26
GF Value HK$0.49
Valuation Significantly Undervalued
! 6 Warning Signs
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What is LH Group ROCE %?

LH Group HKSE:01978 61 ROCE % is 5.93% as of Dec. 2025. GuruFocus rates HKSE:01978 with a GF Score™ of 61/100 and a GF Value™ of HK$0.49 (Significantly Undervalued). 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. LH Group's annualized ROCE % for the quarter that ended in Dec. 2025 was 5.93%.

LH Group  (HKSE:01978) 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.

LH Group ROCE % Related Terms

LH Group ROCE % Historical Data

* Premium members only.

The historical data trend for LH Group'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.

LH Group ROCE % Chart

LH Group 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 21.07 17.43 22.33 -5.42 4.00

LH Group Semi-Annual Data
Dec15 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 20.94 -12.52 0.44 2.15 5.93
HKSE:01978
61GF Score
LH Group Ltd HKSE:01978
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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LH Group ROCE % Calculation

LH Group'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 )
=17.956/( ( (786.006 - 319.208) + (696.642 - 265.49) )/ 2 )
=17.956/( (466.798+431.152)/ 2 )
=17.956/448.975
=4.00 %

LH Group'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 )
=26.076/( ( (684.201 - 236.465) + (696.642 - 265.49) )/ 2 )
=26.076/( ( 447.736 + 431.152 )/ 2 )
=26.076/439.444
=5.93 %

(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 5.93% mean?
LH Group (HKSE:01978) has a ROCE % of 5.93% as of Dec. 2025.
Is LH Group's ROCE % too high?
LH Group's current ROCE % is 5.93%. The Restaurants industry median ROCE % is 6.40. LH Group's value of 5.93% is 7.3% below this industry median. Overall, LH Group has a GF Score™ of 61/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LH Group's ROCE % compare to MCD and SBUX?
LH Group's ROCE % of 5.93% can be compared against companies in the Restaurants industry. The industry median ROCE % is 6.40. LH Group's value of 5.93% is 7.3% 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 ROCE % for a Restaurants company?
The median ROCE % among Restaurants companies is 6.40, based on 352 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. LH Group's current ROCE % of 5.93% is 7.3% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median ROCE % is 6.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LH Group's current ROCE % is 5.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LH Group stock overvalued right now?
Based on GuruFocus' analysis, LH Group (HKSE:01978) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$0.49, compared to a current price of HK$0.26 — trading 46.9% below its estimated fair value. The current ROCE % is 5.93% and 7.3% below the Restaurants industry median of 6.40. LH Group's overall GF Score™ is 61/100 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 LH Group (HKSE:01978), the current ROCE % is 5.93% 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 LH Group (HKSE:01978) Overvalued in 2026?

Based on GuruFocus' analysis, LH Group stock appears to be undervalued. The current stock price of HK$0.26 is trading 46.9% below its estimated GF Value™ of HK$0.49. GuruFocus considers LH Group to be Significantly Undervalued.

Key valuation signals for HKSE:01978:

  • ROCE %: 5.93%
  • GF Value™: HK$0.49 vs. price of HK$0.26 (46.9% below fair value)
  • GF Score™: 61/100 with 6 warning signs
  • Industry Position: 7.3% below the Restaurants median

No single metric tells the full story. See the HKSE:01978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

LH Group Business Description

Address 38 Wang Chiu Road, Unit 03, L22, Tower 1, Enterprise Square Five, Kowloon Bay, Kowloon, Hong Kong, HKG
LH Group Ltd is engaged as a full-service restaurant operator serving Asian cuisine, including Japanese, Korean, Cantonese and Shanghainese cuisine in Hong Kong. Its segments include Self-owned brands, Franchised brands, and the Sale of food ingredients and others. The majority of its revenue comes from the Self-owned brands.
61GF Score

Get the complete analysis for HKSE:01978

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

HK$0.26
Price
HK$0.49
GF Value