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Lingyi Itech (Guangdong) Co (HKSE:01688) 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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
* 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, Lingyi Itech (Guangdong) 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.
Lingyi Itech (Guangdong) Co ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Lingyi Itech (Guangdong) Co's ROE % distribution charts can be found below:
* The bar in red indicates where Lingyi Itech (Guangdong) 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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Lingyi Itech (Guangdong) Co (HKSE:01688) has a ROE % of 6.56% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lingyi Itech (Guangdong) Co and its competitors. This is 35% below median its historical median of 10.06. According to the industry distribution chart, Lingyi Itech (Guangdong) Co ranks #836 out of 2430 companies in the Hardware industry, placing it in the top 34.4%.
Is Lingyi Itech (Guangdong) Co's ROE % too high?
Lingyi Itech (Guangdong) Co's current ROE % of 6.56% is 35% below median its 10-year median of 10.06. The Hardware industry median ROE % is 5.24. Lingyi Itech (Guangdong) Co's value of 6.56% is 25.3% above this industry median. Based on the distribution chart, Lingyi Itech (Guangdong) Co ranks #836 out of 2430 companies in the Hardware industry, which is above the industry midpoint. Overall, Lingyi Itech (Guangdong) Co has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lingyi Itech (Guangdong) Co's ROE % compare to APH and GLW?
According to the Hardware industry distribution chart, Lingyi Itech (Guangdong) Co ranks #836 out of 2430 companies for ROE %. This puts Lingyi Itech (Guangdong) Co in the upper half of its industry. The industry median ROE % is 5.24. Lingyi Itech (Guangdong) Co's value of 6.56% is 25.3% above this benchmark. While the company's 10-year median is 10.06 vs. the industry median of 5.24, Lingyi Itech (Guangdong) Co 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 Hardware company?
The median ROE % among Hardware companies is 5.24, based on 2,430 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. Lingyi Itech (Guangdong) Co's current ROE % of 6.56% is 25.3% 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 Lingyi Itech (Guangdong) Co and its competitors. For the Hardware industry, the median ROE % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lingyi Itech (Guangdong) Co's current ROE % is 6.56%, which is 35% below median its own 10-year median of 10.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lingyi Itech (Guangdong) Co stock overvalued right now?
Based on GuruFocus' analysis, Lingyi Itech (Guangdong) Co (HKSE:01688) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$5.34, compared to a current price of HK$6.17 — trading 15.5% above its estimated fair value. The current ROE % is 6.56%, which is 35% below median its 10-year median of 10.06 and 25.3% above the Hardware industry median of 5.24. Lingyi Itech (Guangdong) Co's overall GF Score™ is 68/100 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 Lingyi Itech (Guangdong) Co (HKSE:01688), the current ROE % is 6.56% as of Mar. 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 Lingyi Itech (Guangdong) Co (HKSE:01688) Overvalued in 2026?
Based on GuruFocus' analysis, Lingyi Itech (Guangdong) Co stock appears to be overvalued.
The current stock price of HK$6.17 is trading 15.5% above its estimated GF Value™ of HK$5.34.
GuruFocus considers Lingyi Itech (Guangdong) Co to be Modestly Overvalued.
Key valuation signals for HKSE:01688:
ROE %: 6.56% (35% below median its 10-year median of 10.06)
GF Value™: HK$5.34 vs. price of HK$6.17 (15.5% above fair value)
Industry Position: 25.3% above the Hardware median (#836 of 2430)
No single metric tells the full story. See the HKSE:01688 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lingyi Itech (Guangdong) Co Ltd is engaged in the manufacturing of precision functional components, structural modules, and intelligent assembly solutions for the consumer electronics, automotive, and energy storage industries. The company operates three segments. The AI Terminal segment covers AI-powered mobile phones, folding-screen devices, PCs, tablets, display solutions, battery systems, thermal management, AI glasses, XR wearables, sensors, robotics, and related hardware. The Automotive and Low-Altitude Economy segment includes battery structural parts, brake modules, lidar, electronic steering systems, and carbon fiber products. The Other segment focuses on clean energy and photovoltaic storage, including micro inverters, outdoor power solutions, and related products.
68GF Score
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