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Yuanda China HoldingsHKSE:02789 -6.31%44 ROE % is 59.95% as of Dec. 2025, which is 2206% above its 10-year median of 2.60. GuruFocus rates HKSE:02789 with a GF Score™ of 44/100 and a GF Value™ of HK$0.05 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,750 Construction companies, Yuanda China Holdings ranks better than 97.83% on this metric.
Yuanda China Holdings (HKSE:02789) 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.
* 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 Engineering & Construction subindustry, Yuanda China Holdings'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.
Yuanda China Holdings ROE % vs Construction Industry
For the Construction industry and Industrials sector, Yuanda China Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Yuanda China Holdings'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.
Yuanda China Holdings (HKSE:02789) has a ROE % of 59.95% 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 Yuanda China Holdings and its competitors. This is 2206% above median its historical median of 2.60. According to the industry distribution chart, Yuanda China Holdings ranks #38 out of 1750 companies in the Construction industry, placing it in the top 2.2%.
Is Yuanda China Holdings' ROE % too high?
Yuanda China Holdings' current ROE % of 59.95% is 2206% above median its 10-year median of 2.60. The Construction industry median ROE % is 6.72. Yuanda China Holdings' value of 59.95% is 792.8% above this industry median. Based on the distribution chart, Yuanda China Holdings ranks #38 out of 1750 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Yuanda China Holdings has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Yuanda China Holdings' ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Yuanda China Holdings ranks #38 out of 1750 companies for ROE %. This places Yuanda China Holdings in the top 2% of its industry — outperforming the majority of peers. The industry median ROE % is 6.72. Yuanda China Holdings' value of 59.95% is 792.8% above this benchmark. While the company's 10-year median is 2.60 vs. the industry median of 6.72, Yuanda China Holdings 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 Construction company?
The median ROE % among Construction companies is 6.72, based on 1,750 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. Yuanda China Holdings's current ROE % of 59.95% is 792.8% 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 Yuanda China Holdings and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yuanda China Holdings's current ROE % is 59.95%, which is 2206% above median its own 10-year median of 2.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yuanda China Holdings stock overvalued right now?
Based on GuruFocus' analysis, Yuanda China Holdings (HKSE:02789) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.19 — trading 286% above its estimated fair value. The current ROE % is 59.95%, which is 2206% above median its 10-year median of 2.60 and 792.8% above the Construction industry median of 6.72. Yuanda China Holdings' overall GF Score™ is 44/100 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 Yuanda China Holdings (HKSE:02789), the current ROE % is 59.95% 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 Yuanda China Holdings (HKSE:02789) Overvalued in 2026?
Based on GuruFocus' analysis, Yuanda China Holdings stock appears to be overvalued.
The current stock price of HK$0.19 is trading 286% above its estimated GF Value™ of HK$0.05.
GuruFocus considers Yuanda China Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:02789:
ROE %: 59.95% (2206% above median its 10-year median of 2.60)
GF Value™: HK$0.05 vs. price of HK$0.19 (286% above fair value)
Industry Position: 792.8% above the Construction median (#38 of 1750)
No single metric tells the full story. See the HKSE:02789 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yuanda China Holdings Ltd principal activities of the Group are the design, procurement, production, sale and installation of curtain wall systems. It operates in two segments namely Domestic that comprises construction contracts carried out in Chinese Mainland; and Overseas that comprises construction contracts carried out outside of Chinese Mainland. The company's projects are China projects, United Kingdom projects, United States project, Europe projects, Australia projects, Middle East projects, Southeast Asia projects, Singapore projects, Japan and beyond projects. Its products are Curtain wall, Skylight, Metal roof system, Canopy, Breast Board system. The company has presence in Chinese Mainland, United Kingdom, Dubai, Cambodia, Saudi, Australia, United States of America, and Others.
44GF Score
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