Zhong Ju Investment Group (HKSE:01959) ROE %: -43.93% (As of Dec. 2025)

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HKSE:01959 Zhong Ju Investment Group Ltd HKSE:01959
37 GF Score
Price HK$1.87
GF Value HK$0.11
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is Zhong Ju Investment Group ROE %?

Zhong Ju Investment Group HKSE:01959 +11.98% 37 ROE % is -43.93% as of Dec. 2025. GuruFocus rates HKSE:01959 with a GF Score™ of 37/100 and a GF Value™ of HK$0.11 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,306 Vehicles & Parts companies, Zhong Ju Investment Group ranks worse than 94.72% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zhong Ju Investment Group's annualized net income for the quarter that ended in Dec. 2025 was HK$-39.7 Mil. Zhong Ju Investment Group's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was HK$90.3 Mil. Therefore, Zhong Ju Investment Group's annualized ROE % for the quarter that ended in Dec. 2025 was -43.93%.

The historical rank and industry rank for Zhong Ju Investment Group's ROE % or its related term are showing as below:

HKSE:01959' s ROE % Range Over the Past 10 Years
Min: -61.12   Med: 5.01   Max: 31.99
Current: -38.94

During the past 10 years, Zhong Ju Investment Group's highest ROE % was 31.99%. The lowest was -61.12%. And the median was 5.01%.

HKSE:01959's ROE % is ranked worse than
94.72% of 1306 companies
in the Vehicles & Parts industry
Industry Median: 6.64 vs HKSE:01959: -38.94

Zhong Ju Investment Group  (HKSE:01959) 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:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=-39.654/90.267
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-39.654 / 980.926)*(980.926 / 464.8035)*(464.8035 / 90.267)
=Net Margin %*Asset Turnover*Equity Multiplier
=-4.04 %*2.1104*5.1492
=ROA %*Equity Multiplier
=-8.53 %*5.1492
=-43.93 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=-39.654/90.267
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-39.654 / -41.744) * (-41.744 / -48.064) * (-48.064 / 980.926) * (980.926 / 464.8035) * (464.8035 / 90.267)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9499 * 0.8685 * -4.9 % * 2.1104 * 5.1492
=-43.93 %

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.


Zhong Ju Investment Group ROE % Related Terms


Zhong Ju Investment Group ROE % Historical Data

* Premium members only.

The historical data trend for Zhong Ju Investment Group'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.

Zhong Ju Investment Group ROE % Chart

Zhong Ju Investment Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.06 -8.96 -24.10 -61.12 -38.37

Zhong Ju Investment Group Semi-Annual Data
Dec16 Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -24.60 -63.73 -62.87 -35.15 -43.93

HKSE:01959 vs CVNA, PAG, ALTB: ROE % Comparison

For the Auto & Truck Dealerships subindustry, Zhong Ju Investment Group'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.


Zhong Ju Investment Group ROE % vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Zhong Ju Investment Group's ROE % distribution charts can be found below:

* The bar in red indicates where Zhong Ju Investment Group's ROE % falls into.


HKSE:01959
37GF Score
Zhong Ju Investment Group Ltd HKSE:01959
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhong Ju Investment Group ROE % Calculation

Zhong Ju Investment Group's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=-37.484/( (106.842+88.539)/ 2 )
=-37.484/97.6905
=-38.37 %

Zhong Ju Investment Group's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Jun. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=-39.654/( (91.995+88.539)/ 2 )
=-39.654/90.267
=-43.93 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -43.93% mean?
Zhong Ju Investment Group (HKSE:01959) has a ROE % of -43.93% 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 Zhong Ju Investment Group and its competitors. According to the industry distribution chart, Zhong Ju Investment Group ranks #1237 out of 1306 companies in the Vehicles & Parts industry, placing it in the top 94.7%.
Is Zhong Ju Investment Group's ROE % too high?
Zhong Ju Investment Group's current ROE % is -43.93%. Based on the distribution chart, Zhong Ju Investment Group ranks #1237 out of 1306 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Zhong Ju Investment Group has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhong Ju Investment Group's ROE % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Zhong Ju Investment Group ranks #1237 out of 1306 companies for ROE %. This places Zhong Ju Investment Group in the lower half of its industry. The industry median ROE % is 6.64. 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 Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.64, based on 1,306 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 Zhong Ju Investment Group and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhong Ju Investment Group's current ROE % is -43.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhong Ju Investment Group stock overvalued right now?
Based on GuruFocus' analysis, Zhong Ju Investment Group (HKSE:01959) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.11, compared to a current price of HK$1.87 — trading 1600% above its estimated fair value. The current ROE % is -43.93%. Zhong Ju Investment Group's overall GF Score™ is 37/100 with 2 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 Zhong Ju Investment Group (HKSE:01959), the current ROE % is -43.93% 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 Zhong Ju Investment Group (HKSE:01959) Overvalued in 2026?

Based on GuruFocus' analysis, Zhong Ju Investment Group stock appears to be overvalued. The current stock price of HK$1.87 is trading 1600% above its estimated GF Value™ of HK$0.11. GuruFocus considers Zhong Ju Investment Group to be Significantly Overvalued.

Key valuation signals for HKSE:01959:

  • ROE %: -43.93%
  • GF Value™: HK$0.11 vs. price of HK$1.87 (1600% above fair value)
  • GF Score™: 37/100 with 2 warning signs

No single metric tells the full story. See the HKSE:01959 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhong Ju Investment Group Business Description

Address No.40, Rainbow Road, Western District, Guangdong Province, Zhongshan, CHN, 528400
Zhong Ju Investment Group Ltd is an investment holding company engaged in the sale and service of motor vehicles and the provision of services in the PRC. As a 4S dealership group providing one-stop car services, the Group offers a series of one-stop services, such as after-sales services and customer feedback, in addition to car sales. Other integrated auto services provided by the Group include repair and maintenance services, sales of spare parts, insurance agency services, and other services. The company derives all its revenue from Mainland China.
37GF Score

Get the complete analysis for HKSE:01959

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$1.87
Price
HK$0.11
GF Value