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China Chengtong Development Group (HKSE:00217) 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 Chengtong Development Group ROE % Related Terms
China Chengtong Development Group 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 Credit Services subindustry, China Chengtong Development Group'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 Chengtong Development Group ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, China Chengtong Development Group's ROE % distribution charts can be found below:
* The bar in red indicates where China Chengtong Development Group's ROE % falls into.
* 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 Chengtong Development Group (HKSE:00217) has a ROE % of 2.62% 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 Chengtong Development Group and its competitors. This is 11% above median its historical median of 2.35. Over the past decade, China Chengtong Development Group's ROE % has ranged from 0.85 to 4.21. According to the industry distribution chart, China Chengtong Development Group ranks #372 out of 532 companies in the Credit Services industry, placing it in the top 69.9%.
Is China Chengtong Development Group's ROE % too high?
China Chengtong Development Group's current ROE % of 2.62% is 11% above median its 10-year median of 2.35. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 4.21. The Credit Services industry median ROE % is 6.97. China Chengtong Development Group's value of 2.62% is 62.4% below this industry median. Based on the distribution chart, China Chengtong Development Group ranks #372 out of 532 companies in the Credit Services industry, which is below the industry midpoint. Overall, China Chengtong Development Group has a GF Score™ of 28/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Chengtong Development Group's ROE % compare to V and MA?
According to the Credit Services industry distribution chart, China Chengtong Development Group ranks #372 out of 532 companies for ROE %. This places China Chengtong Development Group in the lower half of its industry. The industry median ROE % is 6.97. China Chengtong Development Group's value of 2.62% is 62.4% below this benchmark. Historically, China Chengtong Development Group's own ROE % has ranged from 0.85 to 4.21 over the past decade. While the company's 10-year median is 2.35 vs. the industry median of 6.97, China Chengtong Development Group has consistently been below 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 Credit Services company?
The median ROE % among Credit Services companies is 6.97, based on 532 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 Chengtong Development Group's current ROE % of 2.62% is 62.4% below 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 Chengtong Development Group and its competitors. For the Credit Services industry, the median ROE % is 6.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Chengtong Development Group's current ROE % is 2.62%, which is 11% above median its own 10-year median of 2.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Chengtong Development Group stock overvalued right now?
Based on GuruFocus' analysis, China Chengtong Development Group (HKSE:00217) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.06, compared to a current price of HK$0.12 — trading 93.3% above its estimated fair value. The current ROE % is 2.62%, which is 11% above median its 10-year median of 2.35 and 62.4% below the Credit Services industry median of 6.97. China Chengtong Development Group's overall GF Score™ is 28/100 with 6 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 Chengtong Development Group (HKSE:00217), the current ROE % is 2.62% 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 Chengtong Development Group (HKSE:00217) Overvalued in 2026?
Based on GuruFocus' analysis, China Chengtong Development Group stock appears to be overvalued.
The current stock price of HK$0.12 is trading 93.3% above its estimated GF Value™ of HK$0.06.
GuruFocus considers China Chengtong Development Group to be Significantly Overvalued.
Key valuation signals for HKSE:00217:
ROE %: 2.62% (11% above median its 10-year median of 2.35)
GF Value™: HK$0.06 vs. price of HK$0.12 (93.3% above fair value)
Industry Position: 62.4% below the Credit Services median (#372 of 532)
No single metric tells the full story. See the HKSE:00217 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Chengtong Development Group Ltd is an investment holding company and has its operations divided into business segments: property development and investment, leasing, and marine recreation services and hotels. The property development and investment segment offers sales of properties and holding investment properties for appreciation and/ or providing rental services. The leasing segment provides leasing services, including finance lease, sale and leaseback, and operating lease services, and the Marine recreation services and hotel segment provides marine recreation and hotel services. It generates the majority of its revenue from the leasing segment.
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