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Zibuyu GroupHKSE:02420 +4.21%92 ROE % is 44.80% as of Dec. 2025, which is 17% above its 10-year median of 38.44. GuruFocus rates HKSE:02420 with a GF Score™ of 92/100 and a GF Value™ of HK$6.13 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,099 Retail - Cyclical companies, Zibuyu Group ranks better than 93.08% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zibuyu Group's annualized net income for the quarter that ended in Dec. 2025 was HK$361 Mil. Zibuyu Group's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was HK$805 Mil. Therefore, Zibuyu Group's annualized ROE % for the quarter that ended in Dec. 2025 was 44.80%.
The historical rank and industry rank for Zibuyu Group's ROE % or its related term are showing as below:
HKSE:02420'
s ROE % Range Over the Past 10 Years
Min: -41.28 Med: 38.44 Max: 125.25
Current: 39.46
During the past 7 years, Zibuyu Group's highest ROE % was 125.25%. The lowest was -41.28%. And the median was 38.44%.
HKSE:02420's ROE % is ranked better than 93.08% of 1099
companies
in the Retail - Cyclical industry
Industry Median: 6.49
vs HKSE:02420: 39.46
Zibuyu Group (HKSE:02420) 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.
Zibuyu Group ROE % Related Terms
Zibuyu Group ROE % Historical Data
* Premium members only.
The historical data trend for Zibuyu 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.
For the Internet Retail subindustry, Zibuyu 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.
Zibuyu Group ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Zibuyu Group's ROE % distribution charts can be found below:
* The bar in red indicates where Zibuyu Group'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.
Zibuyu Group (HKSE:02420) has a ROE % of 44.80% 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 Zibuyu Group and its competitors. This is 17% above median its historical median of 38.44. According to the industry distribution chart, Zibuyu Group ranks #76 out of 1099 companies in the Retail - Cyclical industry, placing it in the top 6.9%.
Is Zibuyu Group's ROE % too high?
Zibuyu Group's current ROE % of 44.80% is 17% above median its 10-year median of 38.44. The Retail - Cyclical industry median ROE % is 6.49. Zibuyu Group's value of 44.80% is 590.3% above this industry median. Based on the distribution chart, Zibuyu Group ranks #76 out of 1099 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Zibuyu Group has a GF Score™ of 92/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zibuyu Group's ROE % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Zibuyu Group ranks #76 out of 1099 companies for ROE %. This places Zibuyu Group in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 6.49. Zibuyu Group's value of 44.80% is 590.3% above this benchmark. While the company's 10-year median is 38.44 vs. the industry median of 6.49, Zibuyu Group 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 Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.49, based on 1,099 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. Zibuyu Group's current ROE % of 44.80% is 590.3% 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 Zibuyu Group and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zibuyu Group's current ROE % is 44.80%, which is 17% above median its own 10-year median of 38.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zibuyu Group stock overvalued right now?
Based on GuruFocus' analysis, Zibuyu Group (HKSE:02420) is currently considered Possible Value Trap. The stock's GF Value™ is HK$6.13, compared to a current price of HK$3.96 — trading 35.4% below its estimated fair value. The current ROE % is 44.80%, which is 17% above median its 10-year median of 38.44 and 590.3% above the Retail - Cyclical industry median of 6.49. Zibuyu Group's overall GF Score™ is 92/100 with 4 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 Zibuyu Group (HKSE:02420), the current ROE % is 44.80% 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 Zibuyu Group (HKSE:02420) Overvalued in 2026?
Based on GuruFocus' analysis, Zibuyu Group stock appears to be undervalued.
The current stock price of HK$3.96 is trading 35.4% below its estimated GF Value™ of HK$6.13.
GuruFocus considers Zibuyu Group to be Possible Value Trap.
Key valuation signals for HKSE:02420:
ROE %: 44.80% (17% above median its 10-year median of 38.44)
GF Value™: HK$6.13 vs. price of HK$3.96 (35.4% below fair value)
Industry Position: 590.3% above the Retail - Cyclical median (#76 of 1099)
No single metric tells the full story. See the HKSE:02420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zibuyu Group Ltd is an investment holding company, and its subsidiaries are engaged in the design, procurement, and sale of apparel, footwear, and related products. The group sources products from OEM suppliers based on its designs and sells them globally through third-party e-commerce platforms and its self-operated online stores. Its sales channels include platforms such as Amazon, TikTok, Temu, and other third-party e-commerce platforms, as well as its own online stores. Its geographical segments include North America, Asia, Europe, and Others.
92GF Score
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