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 Treasures New Materials Group's annualized ROCE % for the quarter that ended in Dec. 2025 was -2.44%.
China Treasures New Materials Group (HKSE:02439) 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 Treasures New Materials Group ROCE % Related Terms
China Treasures New Materials Group ROCE % Historical 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.
(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.
China Treasures New Materials Group (HKSE:02439) has a ROCE % of -2.44% as of Dec. 2025.
Is China Treasures New Materials Group's ROCE % too high?
China Treasures New Materials Group's current ROCE % is -2.44%. Overall, China Treasures New Materials Group has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Treasures New Materials Group's ROCE % compare to LIN and SHW?
China Treasures New Materials Group's ROCE % of -2.44% can be compared against companies in the Chemicals industry. The industry median ROCE % is 6.48. 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 Chemicals company?
The median ROCE % among Chemicals companies is 6.48, based on 1,586 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 Chemicals industry, the median ROCE % is 6.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Treasures New Materials Group's current ROCE % is -2.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Treasures New Materials Group stock overvalued right now?
Based on GuruFocus' analysis, China Treasures New Materials Group (HKSE:02439) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.20, compared to a current price of HK$0.34 — trading 70% above its estimated fair value. The current ROCE % is -2.44%. China Treasures New Materials Group's overall GF Score™ is 64/100 with 9 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 Treasures New Materials Group (HKSE:02439), the current ROCE % is -2.44% 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 Treasures New Materials Group (HKSE:02439) Overvalued in 2026?
Based on GuruFocus' analysis, China Treasures New Materials Group stock appears to be overvalued.
The current stock price of HK$0.34 is trading 70% above its estimated GF Value™ of HK$0.20.
GuruFocus considers China Treasures New Materials Group to be Significantly Overvalued.
Key valuation signals for HKSE:02439:
ROCE %: -2.44%
GF Value™: HK$0.20 vs. price of HK$0.34 (70% above fair value)
No single metric tells the full story. See the HKSE:02439 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Treasures New Materials Group Business Description
China Treasures New Materials Group Ltd mainly engages in developing and manufacturing biodegradable plastic products in Northeast China. Its biodegradable plastic products mainly come in biodegradable roll bags. The Group provides biodegradable plastic products, including biodegradable masterbatches that can be used to produce biodegradable plastic products. It has two reportable and operating segments: development and manufacture of biodegradable plastic products, and development and manufacture of non-biodegradable automobile plastic parts. The Group generates the majority of its revenue from the development and manufacture of biodegradable plastic products. Geographically, it generates maximum revenue from the People's Republic of China (PRC).
64GF Score
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