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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.
* 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 Biotechnology subindustry, Shanghai Henlius Biotech'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.
Shanghai Henlius Biotech ROE % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Shanghai Henlius Biotech's ROE % distribution charts can be found below:
* The bar in red indicates where Shanghai Henlius Biotech'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.
Shanghai Henlius Biotech (HKSE:02696) has a ROE % of 23.83% 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 Shanghai Henlius Biotech and its competitors. According to the industry distribution chart, Shanghai Henlius Biotech ranks #78 out of 1250 companies in the Biotechnology industry, placing it in the top 6.2%.
Is Shanghai Henlius Biotech's ROE % too high?
Shanghai Henlius Biotech's current ROE % is 23.83%. Based on the distribution chart, Shanghai Henlius Biotech ranks #78 out of 1250 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Shanghai Henlius Biotech has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Henlius Biotech's ROE % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Shanghai Henlius Biotech ranks #78 out of 1250 companies for ROE %. This places Shanghai Henlius Biotech in the top 6% of its industry — outperforming the majority of peers. 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 Biotechnology company?
A good ROE % depends on the Biotechnology industry context. 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 Shanghai Henlius Biotech and its competitors. Shanghai Henlius Biotech's current ROE % is 23.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Henlius Biotech stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Henlius Biotech (HKSE:02696) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$30.91, compared to a current price of HK$67.30 — trading 117.7% above its estimated fair value. The current ROE % is 23.83%. Shanghai Henlius Biotech's overall GF Score™ is 67/100 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 Shanghai Henlius Biotech (HKSE:02696), the current ROE % is 23.83% 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 Shanghai Henlius Biotech (HKSE:02696) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Henlius Biotech stock appears to be overvalued.
The current stock price of HK$67.30 is trading 117.7% above its estimated GF Value™ of HK$30.91.
GuruFocus considers Shanghai Henlius Biotech to be Significantly Overvalued.
Key valuation signals for HKSE:02696:
ROE %: 23.83%
GF Value™: HK$30.91 vs. price of HK$67.30 (117.7% above fair value)
No single metric tells the full story. See the HKSE:02696 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Henlius Biotech Inc is a biopharmaceutical company in China with the vision to offer affordable and biologics for patients with a focus on oncology and autoimmune diseases. The Group is engaged in biopharmaceutical R&D, biopharmaceutical services, and biopharmaceutical production and sales. It operates in Mainland China, Asia Pacific (excluding Mainland China), North America, South America, Oceania, and Europe. The company products include HLX01 Rituximab, HLX02(trastuzumab), and others.
67GF Score
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