Bama Tea Co (HKSE:06980) ROCE %: 17.94% (As of Dec. 2025)

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HKSE:06980 Bama Tea Co Ltd HKSE:06980
23 GF Score
Price HK$29.20
! 1 Warning Sign
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What is Bama Tea Co ROCE %?

Bama Tea Co HKSE:06980 +4.73% 23 ROCE % is 17.94% as of Dec. 2025. GuruFocus rates HKSE:06980 with a GF Score™ of 23/100. The stock has 1 warning sign 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. Bama Tea Co's annualized ROCE % for the quarter that ended in Dec. 2025 was 17.94%.

Bama Tea Co  (HKSE:06980) 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.

Bama Tea Co ROCE % Related Terms

Bama Tea Co ROCE % Historical Data

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The historical data trend for Bama Tea Co'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.

Bama Tea Co ROCE % Chart

Bama Tea Co Annual Data
Trend Dec22 Dec23 Dec24 Dec25
ROCE %
25.70 29.08 26.73 20.23

Bama Tea Co Semi-Annual Data
Dec22 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial 0.00 36.81 18.17 25.85 17.94
HKSE:06980
23GF Score
Bama Tea Co Ltd HKSE:06980
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Bama Tea Co ROCE % Calculation

Bama Tea Co'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 )
=341.153/( ( (1922.759 - 567.743) + (2760.337 - 742.463) )/ 2 )
=341.153/( (1355.016+2017.874)/ 2 )
=341.153/1686.445
=20.23 %

Bama Tea Co'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 )
=313.054/( ( (2026.831 - 554.822) + (2760.337 - 742.463) )/ 2 )
=313.054/( ( 1472.009 + 2017.874 )/ 2 )
=313.054/1744.9415
=17.94 %

(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 17.94% mean?
Bama Tea Co (HKSE:06980) has a ROCE % of 17.94% as of Dec. 2025.
Is Bama Tea Co's ROCE % too high?
Bama Tea Co's current ROCE % is 17.94%. The Consumer Packaged Goods industry median ROCE % is 8.98. Bama Tea Co's value of 17.94% is 99.9% above this industry median. Overall, Bama Tea Co has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Bama Tea Co's ROCE % compare to KHC and GIS?
Bama Tea Co's ROCE % of 17.94% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROCE % is 8.98. Bama Tea Co's value of 17.94% is 99.9% above 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 Consumer Packaged Goods company?
The median ROCE % among Consumer Packaged Goods companies is 8.98, based on 1,944 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. Bama Tea Co's current ROCE % of 17.94% is 99.9% above 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 Consumer Packaged Goods industry, the median ROCE % is 8.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bama Tea Co's current ROCE % is 17.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bama Tea Co stock overvalued right now?
Bama Tea Co (HKSE:06980) has a current ROCE % of 17.94%. The current ROCE % is 17.94% and 99.9% above the Consumer Packaged Goods industry median of 8.98. Bama Tea Co's overall GF Score™ is 23/100 with 1 warning sign 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 Bama Tea Co (HKSE:06980), the current ROCE % is 17.94% 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.

Bama Tea Co Business Description

Address Dongmen South Road, Nanhu Street, 7th Floor, Huaduyuan Building, Luohu District, Guangdong Province, Shenzhen, CHN
Bama Tea Co Ltd is principally engaged in the processing, production, and sales of tea leaves and other tea products in the PRC. The company generates revenue through processing, production and sales of tea leaves and other tea products such as Sales of tea leaves, Sales of tea ware, Sales of tea snacks, and Sales of other products. Geographically, it derives all its revenue from PRC.
23GF Score

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

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