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Chinney Alliance Group (HKSE:00385) 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.
* 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 Engineering & Construction subindustry, Chinney Alliance 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.
Chinney Alliance Group ROE % vs Construction Industry
For the Construction industry and Industrials sector, Chinney Alliance Group's ROE % distribution charts can be found below:
* The bar in red indicates where Chinney Alliance 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.
Chinney Alliance Group (HKSE:00385) has a ROE % of -2.28% 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 Chinney Alliance Group and its competitors. According to the industry distribution chart, Chinney Alliance Group ranks #1328 out of 1750 companies in the Construction industry, placing it in the top 75.9%.
Is Chinney Alliance Group's ROE % too high?
Chinney Alliance Group's current ROE % is -2.28%. Based on the distribution chart, Chinney Alliance Group ranks #1328 out of 1750 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Chinney Alliance Group has a GF Score™ of 40/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chinney Alliance Group's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Chinney Alliance Group ranks #1328 out of 1750 companies for ROE %. This places Chinney Alliance Group in the lower half of its industry. The industry median ROE % is 6.73. 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 Construction company?
The median ROE % among Construction companies is 6.73, based on 1,750 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. 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 Chinney Alliance Group and its competitors. For the Construction industry, the median ROE % is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinney Alliance Group's current ROE % is -2.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinney Alliance Group stock overvalued right now?
Based on GuruFocus' analysis, Chinney Alliance Group (HKSE:00385) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$0.39, compared to a current price of HK$0.25 — trading 35.9% below its estimated fair value. The current ROE % is -2.28%. Chinney Alliance Group's overall GF Score™ is 40/100 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 Chinney Alliance Group (HKSE:00385), the current ROE % is -2.28% 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 Chinney Alliance Group (HKSE:00385) Overvalued in 2026?
Based on GuruFocus' analysis, Chinney Alliance Group stock appears to be undervalued.
The current stock price of HK$0.25 is trading 35.9% below its estimated GF Value™ of HK$0.39.
GuruFocus considers Chinney Alliance Group to be Significantly Undervalued.
Key valuation signals for HKSE:00385:
ROE %: -2.28%
GF Value™: HK$0.39 vs. price of HK$0.25 (35.9% below fair value)
No single metric tells the full story. See the HKSE:00385 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chinney Alliance Group Ltd is engaged in trading of plastic and chemical products, provision of building related contracting services for both public and private sectors, including engineering contracting services in the air-conditioning industry and provision of maintenance services, superstructure construction works for both public and private sectors in Hong Kong and Macau, foundation piling, and drilling and site investigation for both public and private sectors in Hong Kong and Macau, distribution and installation of aviation system and other products, and property holding and development and investment holding. It derives revenue from the building-related contracting services segment, which consists of the provision of contracting services for both public and private sectors.
40GF Score
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