Reach New Holdings (HKSE:08471) ROCE %: -38.85% (As of Dec. 2025)

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HKSE:08471 Reach New Holdings Ltd HKSE:08471
58 GF Score
Price HK$0.27
GF Value HK$3.07
Valuation Possible Value Trap
! 6 Warning Signs
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What is Reach New Holdings ROCE %?

Reach New Holdings HKSE:08471 58 ROCE % is -38.85% as of Dec. 2025. GuruFocus rates HKSE:08471 with a GF Score™ of 58/100 and a GF Value™ of HK$3.07 (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. Reach New Holdings's annualized ROCE % for the quarter that ended in Dec. 2025 was -38.85%.

Reach New Holdings  (HKSE:08471) 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.

Reach New Holdings ROCE % Related Terms

Reach New Holdings ROCE % Historical Data

* Premium members only.

The historical data trend for Reach New Holdings'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.

Reach New Holdings ROCE % Chart

Reach New Holdings 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 -1.86 -11.60 -53.50 -24.23 -35.74

Reach New Holdings 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 -105.28 -38.62 -8.42 -22.96 -38.85
HKSE:08471
58GF Score
Reach New Holdings Ltd HKSE:08471
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Reach New Holdings ROCE % Calculation

Reach New Holdings'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 )
=-15.011/( ( (55.256 - 16.493) + (70.588 - 25.339) )/ 2 )
=-15.011/( (38.763+45.249)/ 2 )
=-15.011/42.006
=-35.74 %

Reach New Holdings'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 )
=-19.266/( ( (73.952 - 20.007) + (70.588 - 25.339) )/ 2 )
=-19.266/( ( 53.945 + 45.249 )/ 2 )
=-19.266/49.597
=-38.85 %

(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 -38.85% mean?
Reach New Holdings (HKSE:08471) has a ROCE % of -38.85% as of Dec. 2025.
Is Reach New Holdings' ROCE % too high?
Reach New Holdings' current ROCE % is -38.85%. Overall, Reach New Holdings has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Reach New Holdings' ROCE % compare to competitors?
Reach New Holdings' ROCE % of -38.85% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROCE % is 6.82. 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 Manufacturing - Apparel & Accessories company?
The median ROCE % among Manufacturing - Apparel & Accessories companies is 6.82, based on 1,046 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 Manufacturing - Apparel & Accessories industry, the median ROCE % is 6.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reach New Holdings's current ROCE % is -38.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reach New Holdings stock overvalued right now?
Based on GuruFocus' analysis, Reach New Holdings (HKSE:08471) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.07, compared to a current price of HK$0.27 — trading 91.2% below its estimated fair value. The current ROCE % is -38.85%. Reach New Holdings' overall GF Score™ is 58/100 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 Reach New Holdings (HKSE:08471), the current ROCE % is -38.85% 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 Reach New Holdings (HKSE:08471) Overvalued in 2026?

Based on GuruFocus' analysis, Reach New Holdings stock appears to be undervalued. The current stock price of HK$0.27 is trading 91.2% below its estimated GF Value™ of HK$3.07. GuruFocus considers Reach New Holdings to be Possible Value Trap.

Key valuation signals for HKSE:08471:

  • ROCE %: -38.85%
  • GF Value™: HK$3.07 vs. price of HK$0.27 (91.2% below fair value)
  • GF Score™: 58/100 with 6 warning signs

No single metric tells the full story. See the HKSE:08471 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Reach New Holdings Business Description

Address 1 Science Museum Road, Room 2502, 25th Floor, South Tower, Concordia Plaza, Tsim Sha Tsui East, Kowloon, Hong Kong, HKG
Reach New Holdings Ltd is a labelling solution provider and a one-stop garment accessories manufacturer and supplier based in China. The company is mainly engaged in the production of three types of products, which are Printed products such as hangtags, price tags, and stickers; Woven labels such as woven brand labels, woven size labels, and badges; and Printed labels such as printed brand labels, printed size labels, and care content labels. The group's operations are located in the PRC.
58GF Score

Get the complete analysis for HKSE:08471

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

HK$0.27
Price
HK$3.07
GF Value