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Chuan HoldingsHKSE:01420 62 ROE % is 34.65% as of Jun. 2026, which is 899% above its 10-year median of 3.47. GuruFocus rates HKSE:01420 with a GF Score™ of 62/100 and a GF Value™ of HK$0.22 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,748 Construction companies, Chuan Holdings ranks better than 80.78% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Chuan Holdings's annualized net income for the quarter that ended in Jun. 2026 was HK$282 Mil. Chuan Holdings's average Total Stockholders Equity over the quarter that ended in Jun. 2026 was HK$815 Mil. Therefore, Chuan Holdings's annualized ROE % for the quarter that ended in Jun. 2026 was 34.65%.
The historical rank and industry rank for Chuan Holdings's ROE % or its related term are showing as below:
HKSE:01420'
s ROE % Range Over the Past 10 Years
Min: -9.45 Med: 3.47 Max: 28.49
Current: 28.49
During the past 13 years, Chuan Holdings's highest ROE % was 28.49%. The lowest was -9.45%. And the median was 3.47%.
HKSE:01420's ROE % is ranked better than 80.78% of 1748
companies
in the Construction industry
Industry Median: 6.685
vs HKSE:01420: 28.49
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 (Jun. 2026) net income data. The Revenue data used here is two times the semi-annual (Jun. 2026) 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.
Chuan Holdings ROE % Related Terms
Chuan Holdings ROE % Historical Data
* Premium members only.
The historical data trend for Chuan Holdings'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 Engineering & Construction subindustry, Chuan 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.
Chuan Holdings ROE % vs Construction Industry
For the Construction industry and Industrials sector, Chuan Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Chuan 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Chuan Holdings (HKSE:01420) has a ROE % of 34.65% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Chuan Holdings and its competitors. This is 899% above median its historical median of 3.47. According to the industry distribution chart, Chuan Holdings ranks #336 out of 1748 companies in the Construction industry, placing it in the top 19.2%.
Is Chuan Holdings' ROE % too high?
Chuan Holdings' current ROE % of 34.65% is 899% above median its 10-year median of 3.47. The Construction industry median ROE % is 6.69. Chuan Holdings' value of 34.65% is 418.3% above this industry median. Based on the distribution chart, Chuan Holdings ranks #336 out of 1748 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Chuan Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chuan Holdings' ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Chuan Holdings ranks #336 out of 1748 companies for ROE %. This places Chuan Holdings in the top 19% of its industry — outperforming the majority of peers. The industry median ROE % is 6.69. Chuan Holdings' value of 34.65% is 418.3% above this benchmark. While the company's 10-year median is 3.47 vs. the industry median of 6.69, Chuan Holdings has consistently been above 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 Construction company?
The median ROE % among Construction companies is 6.69, based on 1,748 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. Chuan Holdings's current ROE % of 34.65% is 418.3% above 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 Chuan Holdings and its competitors. For the Construction industry, the median ROE % is 6.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chuan Holdings's current ROE % is 34.65%, which is 899% above median its own 10-year median of 3.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chuan Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chuan Holdings (HKSE:01420) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.22, compared to a current price of HK$0.30 — trading 36.4% above its estimated fair value. The current ROE % is 34.65%, which is 899% above median its 10-year median of 3.47 and 418.3% above the Construction industry median of 6.69. Chuan Holdings' overall GF Score™ is 62/100 with 5 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 Chuan Holdings (HKSE:01420), the current ROE % is 34.65% as of Jun. 2026. 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 Chuan Holdings (HKSE:01420) Overvalued in 2026?
Based on GuruFocus' analysis, Chuan Holdings stock appears to be overvalued.
The current stock price of HK$0.30 is trading 36.4% above its estimated GF Value™ of HK$0.22.
GuruFocus considers Chuan Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01420:
ROE %: 34.65% (899% above median its 10-year median of 3.47)
GF Value™: HK$0.22 vs. price of HK$0.30 (36.4% above fair value)
Industry Position: 418.3% above the Construction median (#336 of 1748)
No single metric tells the full story. See the HKSE:01420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chuan Holdings Ltd is an earthwork contractor. The company's business segments are Earthworks and ancillary services; general construction works; and Property investment. The earthworks and related services include excavation, earth disposal, demolition, and various earthwork ancillary services; General construction works, including construction of new buildings, alternation, and addition works; and Property investment, includes Property leasing and management operations. It generates a majority of its revenue from the Earthworks ancillary services segment.
62GF Score
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