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.
Nanfang Communication Holdings (HKSE:01617) 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.
Nanfang Communication Holdings ROE % Related Terms
Nanfang Communication 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 Communication Equipment subindustry, Nanfang Communication 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.
Nanfang Communication Holdings ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Nanfang Communication Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Nanfang Communication 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.
Nanfang Communication Holdings (HKSE:01617) has a ROE % of 1.01% 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 Nanfang Communication Holdings and its competitors. This is 74% below median its historical median of 3.87. According to the industry distribution chart, Nanfang Communication Holdings ranks #1371 out of 2426 companies in the Hardware industry, placing it in the top 56.5%.
Is Nanfang Communication Holdings' ROE % too high?
Nanfang Communication Holdings' current ROE % of 1.01% is 74% below median its 10-year median of 3.87. The Hardware industry median ROE % is 5.45. Nanfang Communication Holdings' value of 1.01% is 81.5% below this industry median. Based on the distribution chart, Nanfang Communication Holdings ranks #1371 out of 2426 companies in the Hardware industry, which is below the industry midpoint. Overall, Nanfang Communication Holdings has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nanfang Communication Holdings' ROE % compare to CSCO and MSI?
According to the Hardware industry distribution chart, Nanfang Communication Holdings ranks #1371 out of 2426 companies for ROE %. This places Nanfang Communication Holdings in the lower half of its industry. The industry median ROE % is 5.45. Nanfang Communication Holdings' value of 1.01% is 81.5% below this benchmark. While the company's 10-year median is 3.87 vs. the industry median of 5.45, Nanfang Communication Holdings 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. Nanfang Communication Holdings's current ROE % of 1.01% is 81.5% 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 Nanfang Communication Holdings 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. Nanfang Communication Holdings's current ROE % is 1.01%, which is 74% below median its own 10-year median of 3.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanfang Communication Holdings stock overvalued right now?
Based on GuruFocus' analysis, Nanfang Communication Holdings (HKSE:01617) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.08, compared to a current price of HK$0.26 — trading 225% above its estimated fair value. The current ROE % is 1.01%, which is 74% below median its 10-year median of 3.87 and 81.5% below the Hardware industry median of 5.45. Nanfang Communication Holdings' overall GF Score™ is 44/100 with 3 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 Nanfang Communication Holdings (HKSE:01617), the current ROE % is 1.01% 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 Nanfang Communication Holdings (HKSE:01617) Overvalued in 2026?
Based on GuruFocus' analysis, Nanfang Communication Holdings stock appears to be overvalued.
The current stock price of HK$0.26 is trading 225% above its estimated GF Value™ of HK$0.08.
GuruFocus considers Nanfang Communication Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01617:
ROE %: 1.01% (74% below median its 10-year median of 3.87)
GF Value™: HK$0.08 vs. price of HK$0.26 (225% above fair value)
Industry Position: 81.5% below the Hardware median (#1371 of 2426)
No single metric tells the full story. See the HKSE:01617 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nanfang Communication Holdings Ltd manufactures and supplies a wide range of optical fiber cable components. The products of the company are used in different applications, such as mobile communication networks, internet networks, and fixed telephone networks in the telecommunications industry, and can be installed under different conditions. The company's products include optical fiber cables, layer-stranded optical fiber products, copper-made communication cables and others. The company's operation is principally in the People's Republic of China.
44GF Score
Get the complete analysis for HKSE:01617
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:01617 has been successfully added to your 
