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Guolian Minsheng Securities Co (HKSE:01456) 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 four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (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.
Guolian Minsheng Securities Co ROE % Related Terms
Guolian Minsheng Securities 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.
For the Capital Markets subindustry, Guolian Minsheng Securities 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.
Guolian Minsheng Securities Co ROE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Guolian Minsheng Securities Co's ROE % distribution charts can be found below:
* The bar in red indicates where Guolian Minsheng Securities 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 four times the quarterly (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Guolian Minsheng Securities Co (HKSE:01456) has a ROE % of 1.89% 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 Guolian Minsheng Securities Co and its competitors. This is 64% below median its historical median of 5.30. Over the past decade, Guolian Minsheng Securities Co's ROE % has ranged from 0.65 to 7.69. According to the industry distribution chart, Guolian Minsheng Securities Co ranks #501 out of 788 companies in the Capital Markets industry, placing it in the top 63.6%.
Is Guolian Minsheng Securities Co's ROE % too high?
Guolian Minsheng Securities Co's current ROE % of 1.89% is 64% below median its 10-year median of 5.30. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 7.69. The Capital Markets industry median ROE % is 6.39. Guolian Minsheng Securities Co's value of 1.89% is 70.4% below this industry median. Based on the distribution chart, Guolian Minsheng Securities Co ranks #501 out of 788 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Guolian Minsheng Securities Co has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guolian Minsheng Securities Co's ROE % compare to MS and GS?
According to the Capital Markets industry distribution chart, Guolian Minsheng Securities Co ranks #501 out of 788 companies for ROE %. This places Guolian Minsheng Securities Co in the lower half of its industry. The industry median ROE % is 6.39. Guolian Minsheng Securities Co's value of 1.89% is 70.4% below this benchmark. Historically, Guolian Minsheng Securities Co's own ROE % has ranged from 0.65 to 7.69 over the past decade. While the company's 10-year median is 5.30 vs. the industry median of 6.39, Guolian Minsheng Securities 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 Capital Markets company?
The median ROE % among Capital Markets companies is 6.39, based on 788 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. Guolian Minsheng Securities Co's current ROE % of 1.89% is 70.4% 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 Guolian Minsheng Securities Co and its competitors. For the Capital Markets industry, the median ROE % is 6.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guolian Minsheng Securities Co's current ROE % is 1.89%, which is 64% below median its own 10-year median of 5.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guolian Minsheng Securities Co stock overvalued right now?
Based on GuruFocus' analysis, Guolian Minsheng Securities Co (HKSE:01456) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$4.75, compared to a current price of HK$3.77 — trading 20.7% below its estimated fair value. The current ROE % is 1.89%, which is 64% below median its 10-year median of 5.30 and 70.4% below the Capital Markets industry median of 6.39. Guolian Minsheng Securities Co's overall GF Score™ is 88/100 with 8 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 Guolian Minsheng Securities Co (HKSE:01456), the current ROE % is 1.89% 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 Guolian Minsheng Securities Co (HKSE:01456) Overvalued in 2026?
Based on GuruFocus' analysis, Guolian Minsheng Securities Co stock appears to be undervalued.
The current stock price of HK$3.77 is trading 20.7% below its estimated GF Value™ of HK$4.75.
GuruFocus considers Guolian Minsheng Securities Co to be Modestly Undervalued.
Key valuation signals for HKSE:01456:
ROE %: 1.89% (64% below median its 10-year median of 5.30)
GF Value™: HK$4.75 vs. price of HK$3.77 (20.7% below fair value)
Industry Position: 70.4% below the Capital Markets median (#501 of 788)
No single metric tells the full story. See the HKSE:01456 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guolian Minsheng Securities Co Ltd is a China-based financial institution. The company's operating segments include Brokerage and wealth management, Credit transactions, Investment banking, Proprietary trading, Asset management and investment, and Other businesses. It generates maximum revenue from the Brokerage and wealth management segment and the Proprietary trading segment. The Brokerage and wealth management segment includes securities trading and brokering services, sales of wealth management products, investment consulting, and asset allocation. The Proprietary trading segment includes trading in financial products.
88GF Score
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