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Chinanjiang Fine Chemicals Co (HKSE:02198) 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.
Chinanjiang Fine Chemicals Co ROE % Related Terms
Chinanjiang Fine Chemicals 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 Chemicals subindustry, Chinanjiang Fine Chemicals 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.
Chinanjiang Fine Chemicals Co ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Chinanjiang Fine Chemicals Co's ROE % distribution charts can be found below:
* The bar in red indicates where Chinanjiang Fine Chemicals 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.
Chinanjiang Fine Chemicals Co (HKSE:02198) has a ROE % of 4.05% 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 Chinanjiang Fine Chemicals Co and its competitors. This is 64% below median its historical median of 11.22. According to the industry distribution chart, Chinanjiang Fine Chemicals Co ranks #592 out of 1589 companies in the Chemicals industry, placing it in the top 37.3%.
Is Chinanjiang Fine Chemicals Co's ROE % too high?
Chinanjiang Fine Chemicals Co's current ROE % of 4.05% is 64% below median its 10-year median of 11.22. The Chemicals industry median ROE % is 5.55. Chinanjiang Fine Chemicals Co's value of 4.05% is 27% below this industry median. Based on the distribution chart, Chinanjiang Fine Chemicals Co ranks #592 out of 1589 companies in the Chemicals industry, which is above the industry midpoint. Overall, Chinanjiang Fine Chemicals Co has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chinanjiang Fine Chemicals Co's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Chinanjiang Fine Chemicals Co ranks #592 out of 1589 companies for ROE %. This puts Chinanjiang Fine Chemicals Co in the upper half of its industry. The industry median ROE % is 5.55. Chinanjiang Fine Chemicals Co's value of 4.05% is 27% below this benchmark. While the company's 10-year median is 11.22 vs. the industry median of 5.55, Chinanjiang Fine Chemicals 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 Chemicals company?
The median ROE % among Chemicals companies is 5.55, based on 1,589 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. Chinanjiang Fine Chemicals Co's current ROE % of 4.05% is 27% 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 Chinanjiang Fine Chemicals Co and its competitors. For the Chemicals industry, the median ROE % is 5.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinanjiang Fine Chemicals Co's current ROE % is 4.05%, which is 64% below median its own 10-year median of 11.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinanjiang Fine Chemicals Co stock overvalued right now?
Based on GuruFocus' analysis, Chinanjiang Fine Chemicals Co (HKSE:02198) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$2.56, compared to a current price of HK$3.36 — trading 31.3% above its estimated fair value. The current ROE % is 4.05%, which is 64% below median its 10-year median of 11.22 and 27% below the Chemicals industry median of 5.55. Chinanjiang Fine Chemicals Co's overall GF Score™ is 73/100 with 7 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 Chinanjiang Fine Chemicals Co (HKSE:02198), the current ROE % is 4.05% 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 Chinanjiang Fine Chemicals Co (HKSE:02198) Overvalued in 2026?
Based on GuruFocus' analysis, Chinanjiang Fine Chemicals Co stock appears to be overvalued.
The current stock price of HK$3.36 is trading 31.3% above its estimated GF Value™ of HK$2.56.
GuruFocus considers Chinanjiang Fine Chemicals Co to be Significantly Overvalued.
Key valuation signals for HKSE:02198:
ROE %: 4.05% (64% below median its 10-year median of 11.22)
GF Value™: HK$2.56 vs. price of HK$3.36 (31.3% above fair value)
Industry Position: 27% below the Chemicals median (#592 of 1589)
No single metric tells the full story. See the HKSE:02198 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Sanjiang Fine Chemicals Co Ltd manufactures and supplies chemicals in China. The company's product portfolio includes ethylene oxide, ethylene glycol, propylene, polypropylene, methyl tert-butyl ether, and surfactants, and provides surfactant processing service. Besides, it also produces and distributes C4, crude pentene, and industrial gases, such as oxygen, nitrogen, and argon. It has a geographical presence in the Chinese mainland, Singapore, the United Arab Emirates, Hong Kong, and Others.
73GF Score
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