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Sun King Technology Group (HKSE:00580) 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 Electronic Components subindustry, Sun King Technology 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.
Sun King Technology Group ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Sun King Technology Group's ROE % distribution charts can be found below:
* The bar in red indicates where Sun King Technology 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.
Sun King Technology Group (HKSE:00580) has a ROE % of 4.29% 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 Sun King Technology Group and its competitors. This is 51% below median its historical median of 8.78. Over the past decade, Sun King Technology Group's ROE % has ranged from 0.90 to 16.29. According to the industry distribution chart, Sun King Technology Group ranks #996 out of 2428 companies in the Hardware industry, placing it in the top 41%.
Is Sun King Technology Group's ROE % too high?
Sun King Technology Group's current ROE % of 4.29% is 51% below median its 10-year median of 8.78. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 16.29. The Hardware industry median ROE % is 4.70. Sun King Technology Group's value of 4.29% is 8.7% below this industry median. Based on the distribution chart, Sun King Technology Group ranks #996 out of 2428 companies in the Hardware industry, which is above the industry midpoint. Overall, Sun King Technology Group has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sun King Technology Group's ROE % compare to APH and GLW?
According to the Hardware industry distribution chart, Sun King Technology Group ranks #996 out of 2428 companies for ROE %. This puts Sun King Technology Group in the upper half of its industry. The industry median ROE % is 4.70. Sun King Technology Group's value of 4.29% is 8.7% below this benchmark. Historically, Sun King Technology Group's own ROE % has ranged from 0.90 to 16.29 over the past decade. While the company's 10-year median is 8.78 vs. the industry median of 4.70, Sun King Technology 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 Hardware company?
The median ROE % among Hardware companies is 4.70, based on 2,428 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. Sun King Technology Group's current ROE % of 4.29% is 8.7% 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 Sun King Technology Group and its competitors. For the Hardware industry, the median ROE % is 4.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sun King Technology Group's current ROE % is 4.29%, which is 51% below median its own 10-year median of 8.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sun King Technology Group stock overvalued right now?
Based on GuruFocus' analysis, Sun King Technology Group (HKSE:00580) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$2.80, compared to a current price of HK$1.36 — trading 51.4% below its estimated fair value. The current ROE % is 4.29%, which is 51% below median its 10-year median of 8.78 and 8.7% below the Hardware industry median of 4.70. Sun King Technology Group's overall GF Score™ is 79/100 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 Sun King Technology Group (HKSE:00580), the current ROE % is 4.29% 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 Sun King Technology Group (HKSE:00580) Overvalued in 2026?
Based on GuruFocus' analysis, Sun King Technology Group stock appears to be undervalued.
The current stock price of HK$1.36 is trading 51.4% below its estimated GF Value™ of HK$2.80.
GuruFocus considers Sun King Technology Group to be Significantly Undervalued.
Key valuation signals for HKSE:00580:
ROE %: 4.29% (51% below median its 10-year median of 8.78)
GF Value™: HK$2.80 vs. price of HK$1.36 (51.4% below fair value)
Industry Position: 8.7% below the Hardware median (#996 of 2428)
No single metric tells the full story. See the HKSE:00580 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sun King Technology Group Ltd is an investment holding company engaged in the business of manufacturing and trading power electronic components. The products offered by the group are categorized into applied industries, namely, power transmission and distribution, electrified transportation and industrial, and others. Its product categories are Anode Saturable Reactors, ABB's Semiconductors, Power Quality Improved Equipment, Power Electronic Devices, Power Electronic Capacitors, Busbars, Digital IGBT Gate Units, Power Capacitors, Power Grid Status Monitoring, and Others. The company mainly operates in the PRC.
79GF Score
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