Avic Heavy Machinery Co (SHSE:600765) ROCE %: 8.14% (As of Mar. 2026)

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.

SHSE:600765 Avic Heavy Machinery Co Ltd SHSE:600765
67 GF Score
Price ¥12.86
GF Value ¥17.12
Valuation Modestly Undervalued
! 10 Warning Signs
View Full Analysis

What is Avic Heavy Machinery Co ROCE %?

Avic Heavy Machinery Co SHSE:600765 +0.23% 67 ROCE % is 8.14% as of Mar. 2026. GuruFocus rates SHSE:600765 with a GF Score™ of 67/100 and a GF Value™ of ¥17.12 (Modestly Undervalued). The stock has 10 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. Avic Heavy Machinery Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 8.14%.

Avic Heavy Machinery Co  (SHSE:600765) 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.

Avic Heavy Machinery Co ROCE % Related Terms

Avic Heavy Machinery Co ROCE % Historical Data

* Premium members only.

The historical data trend for Avic Heavy Machinery 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.

Avic Heavy Machinery Co ROCE % Chart

Avic Heavy Machinery Co 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 11.46 13.58 12.88 5.62 5.20

Avic Heavy Machinery Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 7.09 8.91 3.23 1.33 8.14
SHSE:600765
67GF Score
Avic Heavy Machinery Co Ltd SHSE:600765
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Avic Heavy Machinery Co ROCE % Calculation

Avic Heavy Machinery 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 )
=943.439/( ( (30324.947 - 11892.834) + (31107.005 - 13265.835) )/ 2 )
=943.439/( (18432.113+17841.17)/ 2 )
=943.439/18136.6415
=5.20 %

Avic Heavy Machinery Co's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=1466.728/( ( (31107.005 - 13265.835) + (31026.252 - 12850.224) )/ 2 )
=1466.728/( ( 17841.17 + 18176.028 )/ 2 )
=1466.728/18008.599
=8.14 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) 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 8.14% mean?
Avic Heavy Machinery Co (SHSE:600765) has a ROCE % of 8.14% as of Mar. 2026.
Is Avic Heavy Machinery Co's ROCE % too high?
Avic Heavy Machinery Co's current ROCE % is 8.14%. The Industrial Products industry median ROCE % is 7.00. Avic Heavy Machinery Co's value of 8.14% is 16.3% above this industry median. Overall, Avic Heavy Machinery Co has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Avic Heavy Machinery Co's ROCE % compare to GEV and ETN?
Avic Heavy Machinery Co's ROCE % of 8.14% can be compared against companies in the Industrial Products industry. The industry median ROCE % is 7.00. Avic Heavy Machinery Co's value of 8.14% is 16.3% 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 an Industrial Products company?
The median ROCE % among Industrial Products companies is 7.00, based on 3,029 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. Avic Heavy Machinery Co's current ROCE % of 8.14% is 16.3% 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 Industrial Products industry, the median ROCE % is 7.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avic Heavy Machinery Co's current ROCE % is 8.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avic Heavy Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Avic Heavy Machinery Co (SHSE:600765) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥17.12, compared to a current price of ¥12.86 — trading 24.9% below its estimated fair value. The current ROCE % is 8.14% and 16.3% above the Industrial Products industry median of 7.00. Avic Heavy Machinery Co's overall GF Score™ is 67/100 with 10 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 Avic Heavy Machinery Co (SHSE:600765), the current ROCE % is 8.14% as of Mar. 2026. 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 Avic Heavy Machinery Co (SHSE:600765) Overvalued in 2026?

Based on GuruFocus' analysis, Avic Heavy Machinery Co stock appears to be undervalued. The current stock price of ¥12.86 is trading 24.9% below its estimated GF Value™ of ¥17.12. GuruFocus considers Avic Heavy Machinery Co to be Modestly Undervalued.

Key valuation signals for SHSE:600765:

  • ROCE %: 8.14%
  • GF Value™: ¥17.12 vs. price of ¥12.86 (24.9% below fair value)
  • GF Score™: 67/100 with 10 warning signs
  • Industry Position: 16.3% above the Industrial Products median

No single metric tells the full story. See the SHSE:600765 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Avic Heavy Machinery Co Business Description

Address No. 501, Beitun Road, Xintian Village, Wudang District, Guizhou Province, Guiyang, CHN, 550018
Avic Heavy Machinery Co Ltd is a China-based company engaged in the development, production, and sale of both military and civilian-used high-end equipment. It manufactures hydraulic parts, hydraulic systems, forging products, heat exchangers and gas turbines in China. The company operates in the business areas of Forging business, Hydraulic business, and New energy business. In the Forging business, the company mainly produces die forgings, free forgings, isothermal forgings and rings of different materials. In Hydraulic business, the main products are various types of heat exchangers, high-speed rotating machinery (turbine, pumps, fans), oil tanks, cooling devices, high-temperature insulation components.
67GF Score

Get the complete analysis for SHSE:600765

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

¥12.86
Price
¥17.12
GF Value