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Hengxin TechnologyHKSE:01085 -5.00%65 ROE % is 3.74% as of Dec. 2025, which is 4% below its 10-year median of 3.91. GuruFocus rates HKSE:01085 with a GF Score™ of 65/100 and a GF Value™ of HK$1.25 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,428 Hardware companies, Hengxin Technology ranks worse than 72.73% on this metric.
The historical rank and industry rank for Hengxin Technology's ROE % or its related term are showing as below:
HKSE:01085'
s ROE % Range Over the Past 10 Years
Min: -2.8 Med: 3.91 Max: 8.14
Current: -2.77
During the past 13 years, Hengxin Technology's highest ROE % was 8.14%. The lowest was -2.80%. And the median was 3.91%.
HKSE:01085's ROE % is ranked worse than 72.73% of 2428
companies
in the Hardware industry
Industry Median: 4.685
vs HKSE:01085: -2.77
Hengxin Technology (HKSE:01085) 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.
Hengxin Technology ROE % Related Terms
Hengxin Technology ROE % Historical Data
* Premium members only.
The historical data trend for Hengxin Technology's ROE % can be seen below:
* 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 Communication Equipment subindustry, Hengxin Technology'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.
Hengxin Technology ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Hengxin Technology's ROE % distribution charts can be found below:
* The bar in red indicates where Hengxin Technology'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.
Hengxin Technology (HKSE:01085) has a ROE % of 3.74% 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 Hengxin Technology and its competitors. This is near median its historical median of 3.91. According to the industry distribution chart, Hengxin Technology ranks #1766 out of 2428 companies in the Hardware industry, placing it in the top 72.7%.
Is Hengxin Technology's ROE % too high?
Hengxin Technology's current ROE % of 3.74% is near median its 10-year median of 3.91. The Hardware industry median ROE % is 4.69. Hengxin Technology's value of 3.74% is 20.2% below this industry median. Based on the distribution chart, Hengxin Technology ranks #1766 out of 2428 companies in the Hardware industry, which is below the industry midpoint. Overall, Hengxin Technology has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hengxin Technology's ROE % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Hengxin Technology ranks #1766 out of 2428 companies for ROE %. This places Hengxin Technology in the lower half of its industry. The industry median ROE % is 4.69. Hengxin Technology's value of 3.74% is 20.2% below this benchmark. While the company's 10-year median is 3.91 vs. the industry median of 4.69, Hengxin Technology 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 4.69, 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. Hengxin Technology's current ROE % of 3.74% is 20.2% 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 Hengxin Technology and its competitors. For the Hardware industry, the median ROE % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengxin Technology's current ROE % is 3.74%, which is near median its own 10-year median of 3.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengxin Technology stock overvalued right now?
Based on GuruFocus' analysis, Hengxin Technology (HKSE:01085) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.25, compared to a current price of HK$1.71 — trading 36.8% above its estimated fair value. The current ROE % is 3.74%, which is near median its 10-year median of 3.91 and 20.2% below the Hardware industry median of 4.69. Hengxin Technology's overall GF Score™ is 65/100 with 7 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 Hengxin Technology (HKSE:01085), the current ROE % is 3.74% 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 Hengxin Technology (HKSE:01085) Overvalued in 2026?
Based on GuruFocus' analysis, Hengxin Technology stock appears to be overvalued.
The current stock price of HK$1.71 is trading 36.8% above its estimated GF Value™ of HK$1.25.
GuruFocus considers Hengxin Technology to be Significantly Overvalued.
Key valuation signals for HKSE:01085:
ROE %: 3.74% (near median its 10-year median of 3.91)
GF Value™: HK$1.25 vs. price of HK$1.71 (36.8% above fair value)
Industry Position: 20.2% below the Hardware median (#1766 of 2428)
No single metric tells the full story. See the HKSE:01085 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hengxin Technology Ltd is an investment holding company. Along with its subsidiaries are engaged in the chips research, design, sales and supply chain services, semiconductor, intellectual property authorization business, and digital security products and services; the supply of electricity with a focus on the production and sales of solar power as well as the provision of development consultation and technical services of the solar thermal power generation technology; & research, design, development & manufacture of telecommunications & technological products, production of radio frequency coaxial cables for mobile communications & mobile communications systems exchange equipment. It has three segments: Integrated circuits & digital technology, New energy & services, & Telecommunications.
65GF Score
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