Hua Medicine (HKSE:02552) ROCE %: -11.72% (As of Dec. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:02552 Hua Medicine HKSE:02552
46 GF Score
Price HK$2.51
GF Value HK$8.74
Valuation Possible Value Trap
! 6 Warning Signs
View Full Analysis

What is Hua Medicine ROCE %?

Hua Medicine HKSE:02552 +5.02% 46 ROCE % is -11.72% as of Dec. 2025. GuruFocus rates HKSE:02552 with a GF Score™ of 46/100 and a GF Value™ of HK$8.74 (Possible Value Trap). 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. Hua Medicine's annualized ROCE % for the quarter that ended in Dec. 2025 was -11.72%.


Hua Medicine  (HKSE:02552) 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.


Hua Medicine ROCE % Related Terms


Hua Medicine ROCE % Historical Data

* Premium members only.

The historical data trend for Hua Medicine'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.

Hua Medicine ROCE % Chart

Hua Medicine 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 -34.72 -22.12 -16.76 -17.85 92.25

Hua Medicine Semi-Annual Data
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 -19.80 -19.48 -16.17 195.56 -11.72
HKSE:02552
46GF Score
Hua Medicine HKSE:02552
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hua Medicine ROCE % Calculation

Hua Medicine'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 )
=1231.215/( ( (1630.647 - 352.621) + (1623.652 - 232.287) )/ 2 )
=1231.215/( (1278.026+1391.365)/ 2 )
=1231.215/1334.6955
=92.25 %

Hua Medicine'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 )
=-162.206/( ( (1552.145 - 174.33) + (1623.652 - 232.287) )/ 2 )
=-162.206/( ( 1377.815 + 1391.365 )/ 2 )
=-162.206/1384.59
=-11.72 %

(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 -11.72% mean?
Hua Medicine (HKSE:02552) has a ROCE % of -11.72% as of Dec. 2025.
Is Hua Medicine's ROCE % too high?
Hua Medicine's current ROCE % is -11.72%. Overall, Hua Medicine has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hua Medicine's ROCE % compare to ZTS?
Hua Medicine's ROCE % of -11.72% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.00. 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 Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.00, based on 962 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 Drug Manufacturers industry, the median ROCE % is 7.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hua Medicine's current ROCE % is -11.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hua Medicine stock overvalued right now?
Based on GuruFocus' analysis, Hua Medicine (HKSE:02552) is currently considered Possible Value Trap. The stock's GF Value™ is HK$8.74, compared to a current price of HK$2.51 — trading 71.3% below its estimated fair value. The current ROCE % is -11.72%. Hua Medicine's overall GF Score™ is 46/100 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 Hua Medicine (HKSE:02552), the current ROCE % is -11.72% 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 Hua Medicine (HKSE:02552) Overvalued in 2026?

Based on GuruFocus' analysis, Hua Medicine stock appears to be undervalued. The current stock price of HK$2.51 is trading 71.3% below its estimated GF Value™ of HK$8.74. GuruFocus considers Hua Medicine to be Possible Value Trap.

Key valuation signals for HKSE:02552:

  • ROCE %: -11.72%
  • GF Value™: HK$8.74 vs. price of HK$2.51 (71.3% below fair value)
  • GF Score™: 46/100 with 6 warning signs

No single metric tells the full story. See the HKSE:02552 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hua Medicine Business Description

Other Exchanges HUMDF:USA
Address Lane 36, Xuelin Road, Hua Medicine, Building 2, Pudong New Area, Shanghai, CHN, 201203
Hua Medicine is an investment holding company. It is engaged in the development and commercialization of a first-in-class oral drug, Dorzagliatin (HMS5552), for the treatment of Type 2 diabetes. Dorzagliatin is a first-in-class glucokinase activator, or GKA, designed to control the progressive degenerative nature of diabetes by restoring glucose homeostasis in Type 2 diabetes. The group majorly operates and generates the majority of its revenue from the PRC.
46GF Score

Get the complete analysis for HKSE:02552

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

HK$2.51
Price
HK$8.74
GF Value