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China Electronics Huada Technology Co (HKSE:00085) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
China Electronics Huada Technology Co ROE % Related Terms
China Electronics Huada Technology Co ROE % Historical 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.
For the Semiconductors subindustry, China Electronics Huada Technology Co's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Electronics Huada Technology Co ROE % vs Semiconductors Industry
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
China Electronics Huada Technology Co (HKSE:00085) has a ROE % of 7.75% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on China Electronics Huada Technology Co and its competitors. This is 32% below median its historical median of 11.33. According to the industry distribution chart, China Electronics Huada Technology Co ranks #388 out of 1008 companies in the Semiconductors industry, placing it in the top 38.5%.
Is China Electronics Huada Technology Co's ROE % too high?
China Electronics Huada Technology Co's current ROE % of 7.75% is 32% below median its 10-year median of 11.33. The Semiconductors industry median ROE % is 5.86. China Electronics Huada Technology Co's value of 7.75% is 32.4% above this industry median. Based on the distribution chart, China Electronics Huada Technology Co ranks #388 out of 1008 companies in the Semiconductors industry, which is above the industry midpoint. Overall, China Electronics Huada Technology Co has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Electronics Huada Technology Co's ROE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, China Electronics Huada Technology Co ranks #388 out of 1008 companies for ROE %. This puts China Electronics Huada Technology Co in the upper half of its industry. The industry median ROE % is 5.86. China Electronics Huada Technology Co's value of 7.75% is 32.4% above this benchmark. While the company's 10-year median is 11.33 vs. the industry median of 5.86, China Electronics Huada Technology Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Semiconductors company?
The median ROE % among Semiconductors companies is 5.86, based on 1,008 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Electronics Huada Technology Co's current ROE % of 7.75% is 32.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on China Electronics Huada Technology Co and its competitors. For the Semiconductors industry, the median ROE % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Electronics Huada Technology Co's current ROE % is 7.75%, which is 32% below median its own 10-year median of 11.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Electronics Huada Technology Co stock overvalued right now?
Based on GuruFocus' analysis, China Electronics Huada Technology Co (HKSE:00085) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$1.14, compared to a current price of HK$0.89 — trading 21.9% below its estimated fair value. The current ROE % is 7.75%, which is 32% below median its 10-year median of 11.33 and 32.4% above the Semiconductors industry median of 5.86. China Electronics Huada Technology Co's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For China Electronics Huada Technology Co (HKSE:00085), the current ROE % is 7.75% 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 China Electronics Huada Technology Co (HKSE:00085) Overvalued in 2026?
Based on GuruFocus' analysis, China Electronics Huada Technology Co stock appears to be undervalued.
The current stock price of HK$0.89 is trading 21.9% below its estimated GF Value™ of HK$1.14.
GuruFocus considers China Electronics Huada Technology Co to be Modestly Undervalued.
Key valuation signals for HKSE:00085:
ROE %: 7.75% (32% below median its 10-year median of 11.33)
GF Value™: HK$1.14 vs. price of HK$0.89 (21.9% below fair value)
Industry Position: 32.4% above the Semiconductors median (#388 of 1008)
No single metric tells the full story. See the HKSE:00085 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Electronics Huada Technology Co Ltd is an investment holding company. The principal activities of the Group are the design and sale of integrated circuit chips. The Group's integrated circuits design business comprises the design of smart cards and secure element chips and the development of application systems. Its products are mainly used in the sectors of identity authentication, financial payment, government utilities, telecommunications, Internet of Things and Internet of Vehicles. Its segment is sale of integrated circuit products and provision of services. The Group generates revenue from Mainland China.
68GF Score
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