Huadong Medicine Co (SZSE:000963) ROCE %: 18.35% (As of Mar. 2026)

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SZSE:000963 Huadong Medicine Co Ltd SZSE:000963
88 GF Score
Price ¥27.31
GF Value ¥39.90
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Huadong Medicine Co ROCE %?

Huadong Medicine Co SZSE:000963 +0.11% 88 ROCE % is 18.35% as of Mar. 2026. GuruFocus rates SZSE:000963 with a GF Score™ of 88/100 and a GF Value™ of ¥39.90 (Significantly Undervalued). The stock has 2 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. Huadong Medicine Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 18.35%.

Huadong Medicine Co  (SZSE:000963) 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.

Huadong Medicine Co ROCE % Related Terms

Huadong Medicine Co ROCE % Historical Data

* Premium members only.

The historical data trend for Huadong Medicine 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.

Huadong Medicine Co ROCE % Chart

Huadong Medicine 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 17.36 16.28 16.39 18.82 16.40

Huadong Medicine 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 18.40 17.83 17.55 11.75 18.35
SZSE:000963
88GF Score
Huadong Medicine Co Ltd SZSE:000963
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Huadong Medicine Co ROCE % Calculation

Huadong Medicine 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 )
=4102.548/( ( (37879.046 - 13794.235) + (39038.036 - 13090.664) )/ 2 )
=4102.548/( (24084.811+25947.372)/ 2 )
=4102.548/25016.0915
=16.40 %

Huadong Medicine 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 )
=4845.484/( ( (39038.036 - 13090.664) + (39908.043 - 13033.135) )/ 2 )
=4845.484/( ( 25947.372 + 26874.908 )/ 2 )
=4845.484/26411.14
=18.35 %

(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 18.35% mean?
Huadong Medicine Co (SZSE:000963) has a ROCE % of 18.35% as of Mar. 2026.
Is Huadong Medicine Co's ROCE % too high?
Huadong Medicine Co's current ROCE % is 18.35%. The Drug Manufacturers industry median ROCE % is 7.07. Huadong Medicine Co's value of 18.35% is 159.5% above this industry median. Overall, Huadong Medicine Co has a GF Score™ of 88/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Huadong Medicine Co's ROCE % compare to ZTS?
Huadong Medicine Co's ROCE % of 18.35% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.07. Huadong Medicine Co's value of 18.35% is 159.5% 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 Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.07, based on 959 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. Huadong Medicine Co's current ROCE % of 18.35% is 159.5% 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 Drug Manufacturers industry, the median ROCE % is 7.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huadong Medicine Co's current ROCE % is 18.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huadong Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, Huadong Medicine Co (SZSE:000963) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥39.90, compared to a current price of ¥27.31 — trading 31.6% below its estimated fair value. The current ROCE % is 18.35% and 159.5% above the Drug Manufacturers industry median of 7.07. Huadong Medicine Co's overall GF Score™ is 88/100 with 2 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 Huadong Medicine Co (SZSE:000963), the current ROCE % is 18.35% 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 Huadong Medicine Co (SZSE:000963) Overvalued in 2026?

Based on GuruFocus' analysis, Huadong Medicine Co stock appears to be undervalued. The current stock price of ¥27.31 is trading 31.6% below its estimated GF Value™ of ¥39.90. GuruFocus considers Huadong Medicine Co to be Significantly Undervalued.

Key valuation signals for SZSE:000963:

  • ROCE %: 18.35%
  • GF Value™: ¥39.90 vs. price of ¥27.31 (31.6% below fair value)
  • GF Score™: 88/100 with 2 warning signs
  • Industry Position: 159.5% above the Drug Manufacturers median

No single metric tells the full story. See the SZSE:000963 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Huadong Medicine Co Business Description

Address No. 866, Moganshan Road, Zhejiang Province, Hangzhou, CHN, 310011
Huadong Medicine Co Ltd is engaged in the production and sales of antibiotics, proprietary Chinese medicine, chemical synthetic medicine, and genetic engineering drug products. The company mainly operates its business through three segments. The Manufacturing Business segment is engaged in the research and development, production, and marketing of specialized medicines, medicines for chronic diseases, as well as special medicines. The Commercial Business segment is engaged in the sales of medicines, medical devices, ginseng, and antler pieces. The International Medical Beauty Business segment is engaged in the production and sales of regeneration products, hyaluronic acids, and botulinum toxin products.
88GF Score

Get the complete analysis for SZSE:000963

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

¥27.31
Price
¥39.90
GF Value