Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Tang Palace (China) HoldingsHKSE:01181 ROE % is -52.48% as of Dec. 2025. The stock has 7 warning signs investors should review. Among 344 Restaurants companies, Tang Palace (China) Holdings ranks worse than 87.79% on this metric.
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.
Tang Palace (China) Holdings ROE % Related Terms
Tang Palace (China) Holdings 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 Restaurants subindustry, Tang Palace (China) Holdings'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.
Tang Palace (China) Holdings ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Tang Palace (China) Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Tang Palace (China) Holdings'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.
Tang Palace (China) Holdings (HKSE:01181) has a ROE % of -52.48% 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 Tang Palace (China) Holdings and its competitors. According to the industry distribution chart, Tang Palace (China) Holdings ranks #302 out of 344 companies in the Restaurants industry, placing it in the top 87.8%.
Is Tang Palace (China) Holdings' ROE % too high?
Tang Palace (China) Holdings' current ROE % is -52.48%. Based on the distribution chart, Tang Palace (China) Holdings ranks #302 out of 344 companies in the Restaurants industry, which is in the bottom quartile relative to peers.
How does Tang Palace (China) Holdings' ROE % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Tang Palace (China) Holdings ranks #302 out of 344 companies for ROE %. This places Tang Palace (China) Holdings in the lower half of its industry. The industry median ROE % is 6.89. 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 Restaurants company?
The median ROE % among Restaurants companies is 6.89, based on 344 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 Tang Palace (China) Holdings and its competitors. For the Restaurants industry, the median ROE % is 6.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tang Palace (China) Holdings's current ROE % is -52.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tang Palace (China) Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tang Palace (China) Holdings (HKSE:01181) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.24, compared to a current price of HK$0.10 — trading 58.3% below its estimated fair value. The current ROE % is -52.48%. 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 Tang Palace (China) Holdings (HKSE:01181), the current ROE % is -52.48% 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.
Tang Palace (China) Holdings Ltd is an investment holding company engaged in restaurant operations and food production. The primary production of the group is located in the People's Republic of China. It offers new dishes, seasonal foods, festive celebrations, basic sauces, food ingredients, and casual dining of different regional cuisines. The company has four operating segments - the Southern China region, the Eastern China region, the Northern China region, and the Western China region. The majority of revenue is generated from the Eastern China segment. The company operates restaurants under the brands of Soup Delice, Tang Palace, Tang's Cuisine, Tang Palace Seafood Restaurant, Canton Tea Room, Social Place, Pepper Lunch, and PappaRich.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:01181 has been successfully added to your 
