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Wai Chi Holdings CoHKSE:01305 86 ROE % is 4.64% as of Dec. 2025, which is 14% below its 10-year median of 5.38. GuruFocus rates HKSE:01305 with a GF Score™ of 86/100 and a GF Value™ of HK$1.08 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,426 Hardware companies, Wai Chi Holdings Co ranks better than 50.04% on this metric.
Wai Chi Holdings Co (HKSE:01305) 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.
Wai Chi Holdings Co ROE % Related Terms
Wai Chi Holdings Co ROE % Historical Data
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The historical data trend for Wai Chi Holdings Co'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 Electronic Components subindustry, Wai Chi Holdings Co'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.
Wai Chi Holdings Co ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Wai Chi Holdings Co's ROE % distribution charts can be found below:
* The bar in red indicates where Wai Chi Holdings Co'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.
Wai Chi Holdings Co (HKSE:01305) has a ROE % of 4.64% 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 Wai Chi Holdings Co and its competitors. This is 14% below median its historical median of 5.38. Over the past decade, Wai Chi Holdings Co's ROE % has ranged from 1.10 to 7.29. According to the industry distribution chart, Wai Chi Holdings Co ranks #1212 out of 2426 companies in the Hardware industry, placing it in the top 50%.
Is Wai Chi Holdings Co's ROE % too high?
Wai Chi Holdings Co's current ROE % of 4.64% is 14% below median its 10-year median of 5.38. Over the past 10 years, this metric has ranged from a low of 1.10 to a high of 7.29. The Hardware industry median ROE % is 5.45. Wai Chi Holdings Co's value of 4.64% is 14.8% below this industry median. Based on the distribution chart, Wai Chi Holdings Co ranks #1212 out of 2426 companies in the Hardware industry, which is above the industry midpoint. Overall, Wai Chi Holdings Co has a GF Score™ of 86/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wai Chi Holdings Co's ROE % compare to APH and GLW?
According to the Hardware industry distribution chart, Wai Chi Holdings Co ranks #1212 out of 2426 companies for ROE %. This puts Wai Chi Holdings Co in the upper half of its industry. The industry median ROE % is 5.45. Wai Chi Holdings Co's value of 4.64% is 14.8% below this benchmark. Historically, Wai Chi Holdings Co's own ROE % has ranged from 1.10 to 7.29 over the past decade. While the company's 10-year median is 5.38 vs. the industry median of 5.45, Wai Chi Holdings 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 Hardware company?
The median ROE % among Hardware companies is 5.45, based on 2,426 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. Wai Chi Holdings Co's current ROE % of 4.64% is 14.8% 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 Wai Chi Holdings Co and its competitors. For the Hardware industry, the median ROE % is 5.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wai Chi Holdings Co's current ROE % is 4.64%, which is 14% below median its own 10-year median of 5.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wai Chi Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Wai Chi Holdings Co (HKSE:01305) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.08, compared to a current price of HK$0.75 — trading 31% below its estimated fair value. The current ROE % is 4.64%, which is 14% below median its 10-year median of 5.38 and 14.8% below the Hardware industry median of 5.45. Wai Chi Holdings Co's overall GF Score™ is 86/100 with 2 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 Wai Chi Holdings Co (HKSE:01305), the current ROE % is 4.64% 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 Wai Chi Holdings Co (HKSE:01305) Overvalued in 2026?
Based on GuruFocus' analysis, Wai Chi Holdings Co stock appears to be undervalued.
The current stock price of HK$0.75 is trading 31% below its estimated GF Value™ of HK$1.08.
GuruFocus considers Wai Chi Holdings Co to be Possible Value Trap.
Key valuation signals for HKSE:01305:
ROE %: 4.64% (14% below median its 10-year median of 5.38)
GF Value™: HK$1.08 vs. price of HK$0.75 (31% below fair value)
Industry Position: 14.8% below the Hardware median (#1212 of 2426)
No single metric tells the full story. See the HKSE:01305 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wai Chi Holdings Co Ltd engages in the manufacturing of light-emitting diode (LED) products for public and commercial use. It operates through the following segments: LED Backlight, LED Lighting, and Semiconductor memory chips. The LED backlight segment engages in the manufacturing and trading of LED backlight products in different sizes and applications. The LED lighting segment engages in the manufacturing and trading of LED lighting products for public and commercial use. The Semiconductor memory chips segment engages in the provision of packaging and testing services and related product sourcing business. Geographically, the company receives maximum revenue from the People's Republic of China.
86GF Score
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