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China Electronics Optics Valley Union Holding Co (HKSE:00798) 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 Optics Valley Union Holding Co ROE % Related Terms
China Electronics Optics Valley Union Holding 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.
China Electronics Optics Valley Union Holding Co ROE % Chart
China Electronics Optics Valley Union Holding Co Annual Data
* 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 Optics Valley Union Holding Co ROE % vs Conglomerates 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 Optics Valley Union Holding Co (HKSE:00798) has a ROE % of 0.77% 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 Optics Valley Union Holding Co and its competitors. This is 90% below median its historical median of 7.47. Over the past decade, China Electronics Optics Valley Union Holding Co's ROE % has ranged from 0.41 to 9.98. According to the industry distribution chart, China Electronics Optics Valley Union Holding Co ranks #410 out of 552 companies in the Conglomerates industry, placing it in the top 74.3%.
Is China Electronics Optics Valley Union Holding Co's ROE % too high?
China Electronics Optics Valley Union Holding Co's current ROE % of 0.77% is 90% below median its 10-year median of 7.47. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 9.98. The Conglomerates industry median ROE % is 6.36. China Electronics Optics Valley Union Holding Co's value of 0.77% is 87.9% below this industry median. Based on the distribution chart, China Electronics Optics Valley Union Holding Co ranks #410 out of 552 companies in the Conglomerates industry, which is below the industry midpoint. Overall, China Electronics Optics Valley Union Holding Co has a GF Score™ of 30/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Electronics Optics Valley Union Holding Co's ROE % compare to MMM and HON?
According to the Conglomerates industry distribution chart, China Electronics Optics Valley Union Holding Co ranks #410 out of 552 companies for ROE %. This places China Electronics Optics Valley Union Holding Co in the lower half of its industry. The industry median ROE % is 6.36. China Electronics Optics Valley Union Holding Co's value of 0.77% is 87.9% below this benchmark. Historically, China Electronics Optics Valley Union Holding Co's own ROE % has ranged from 0.41 to 9.98 over the past decade. While the company's 10-year median is 7.47 vs. the industry median of 6.36, China Electronics Optics Valley Union Holding Co 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 Conglomerates company?
The median ROE % among Conglomerates companies is 6.36, based on 552 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 Optics Valley Union Holding Co's current ROE % of 0.77% is 87.9% 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 Electronics Optics Valley Union Holding Co and its competitors. For the Conglomerates industry, the median ROE % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Electronics Optics Valley Union Holding Co's current ROE % is 0.77%, which is 90% below median its own 10-year median of 7.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Electronics Optics Valley Union Holding Co stock overvalued right now?
Based on GuruFocus' analysis, China Electronics Optics Valley Union Holding Co (HKSE:00798) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.23, compared to a current price of HK$0.14 — trading 38.7% below its estimated fair value. The current ROE % is 0.77%, which is 90% below median its 10-year median of 7.47 and 87.9% below the Conglomerates industry median of 6.36. China Electronics Optics Valley Union Holding Co's overall GF Score™ is 30/100 with 10 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 Optics Valley Union Holding Co (HKSE:00798), the current ROE % is 0.77% 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 Optics Valley Union Holding Co (HKSE:00798) Overvalued in 2026?
Based on GuruFocus' analysis, China Electronics Optics Valley Union Holding Co stock appears to be undervalued.
The current stock price of HK$0.14 is trading 38.7% below its estimated GF Value™ of HK$0.23.
GuruFocus considers China Electronics Optics Valley Union Holding Co to be Possible Value Trap.
Key valuation signals for HKSE:00798:
ROE %: 0.77% (90% below median its 10-year median of 7.47)
GF Value™: HK$0.23 vs. price of HK$0.14 (38.7% below fair value)
Industry Position: 87.9% below the Conglomerates median (#410 of 552)
No single metric tells the full story. See the HKSE:00798 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Electronics Optics Valley Union Holding Co Ltd is an investment holding company engaged in the development of properties. Its operating segments are Industrial Park development services; Industrial investment; and Industrial park operation services. It derives maximum revenue from the Industrial park operation services segment, which includes design and construction services, property management services, leasing services, energy services, digital park (apartment) services, incubator and office sharing services, industrial park financial services as well as group catering and hotel services; and industrial investment this segment represents industrial-related industry investment businesses in various theme parks. The group's operations are located mainly in Mainland China.
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