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HKSE:01643'
s ROE % Range Over the Past 10 Years
Min: -2.82 Med: 34.24 Max: 63.75
Current: -2.82
During the past 9 years, Modern Chinese Medicine Group Co's highest ROE % was 63.75%. The lowest was -2.82%. And the median was 34.24%.
HKSE:01643's ROE % is ranked worse than 72.71% of 938
companies
in the Drug Manufacturers industry
Industry Median: 5.955
vs HKSE:01643: -2.82
Modern Chinese Medicine Group Co (HKSE:01643) 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.
Modern Chinese Medicine Group Co ROE % Related Terms
Modern Chinese Medicine Group 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 Drug Manufacturers - General subindustry, Modern Chinese Medicine Group 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.
Modern Chinese Medicine Group Co ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Modern Chinese Medicine Group Co's ROE % distribution charts can be found below:
* The bar in red indicates where Modern Chinese Medicine Group 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.
Modern Chinese Medicine Group Co (HKSE:01643) has a ROE % of -6.55% 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 Modern Chinese Medicine Group Co and its competitors. According to the industry distribution chart, Modern Chinese Medicine Group Co ranks #682 out of 938 companies in the Drug Manufacturers industry, placing it in the top 72.7%.
Is Modern Chinese Medicine Group Co's ROE % too high?
Modern Chinese Medicine Group Co's current ROE % is -6.55%. Based on the distribution chart, Modern Chinese Medicine Group Co ranks #682 out of 938 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Modern Chinese Medicine Group Co has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Modern Chinese Medicine Group Co's ROE % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Modern Chinese Medicine Group Co ranks #682 out of 938 companies for ROE %. This places Modern Chinese Medicine Group Co in the lower half of its industry. The industry median ROE % is 5.96. 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 Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.96, based on 938 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 Modern Chinese Medicine Group Co and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Modern Chinese Medicine Group Co's current ROE % is -6.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Modern Chinese Medicine Group Co stock overvalued right now?
Based on GuruFocus' analysis, Modern Chinese Medicine Group Co (HKSE:01643) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.16, compared to a current price of HK$0.94 — trading 487.5% above its estimated fair value. The current ROE % is -6.55%. Modern Chinese Medicine Group Co's overall GF Score™ is 53/100 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 Modern Chinese Medicine Group Co (HKSE:01643), the current ROE % is -6.55% 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 Modern Chinese Medicine Group Co (HKSE:01643) Overvalued in 2026?
Based on GuruFocus' analysis, Modern Chinese Medicine Group Co stock appears to be overvalued.
The current stock price of HK$0.94 is trading 487.5% above its estimated GF Value™ of HK$0.16.
GuruFocus considers Modern Chinese Medicine Group Co to be Significantly Overvalued.
Key valuation signals for HKSE:01643:
ROE %: -6.55%
GF Value™: HK$0.16 vs. price of HK$0.94 (487.5% above fair value)
No single metric tells the full story. See the HKSE:01643 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Modern Chinese Medicine Group Co Business Description
Modern Chinese Medicine Group Co Ltd is engaged in the production of Proprietary Chinese Medicines. It offers both OTC and prescribed medicines intended for use by the Middle-aged and the Elderly in the PRC. Its products include liver protection tablets, Shanmei capsules, Qi and blood supplement pills, and Xiaohuoluo pills, among others. Geographically, the company derives its key revenue from the People's Republic of China.
53GF Score
Get the complete analysis for HKSE:01643
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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