Zhengye International Holdings Co (HKSE:03363) ROE %: 2.18% (As of Dec. 2025) — 71% Below Median

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HKSE:03363 Zhengye International Holdings Co Ltd HKSE:03363
44 GF Score
Price HK$0.34
GF Value HK$0.41
Valuation Modestly Undervalued
! 8 Warning Signs
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What is Zhengye International Holdings Co ROE %?

Zhengye International Holdings Co HKSE:03363 44 ROE % is 2.18% as of Dec. 2025, which is 71% below its 10-year median of 7.46. GuruFocus rates HKSE:03363 with a GF Score™ of 44/100 and a GF Value™ of HK$0.41 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 280 Forest Products companies, Zhengye International Holdings Co ranks worse than 56.07% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zhengye International Holdings Co's annualized net income for the quarter that ended in Dec. 2025 was HK$27 Mil. Zhengye International Holdings Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was HK$1,235 Mil. Therefore, Zhengye International Holdings Co's annualized ROE % for the quarter that ended in Dec. 2025 was 2.18%.

The historical rank and industry rank for Zhengye International Holdings Co's ROE % or its related term are showing as below:

HKSE:03363' s ROE % Range Over the Past 10 Years
Min: -1.58   Med: 7.46   Max: 28.83
Current: 1.31

During the past 13 years, Zhengye International Holdings Co's highest ROE % was 28.83%. The lowest was -1.58%. And the median was 7.46%.

HKSE:03363's ROE % is ranked worse than
56.07% of 280 companies
in the Forest Products industry
Industry Median: 2.17 vs HKSE:03363: 1.31

Zhengye International Holdings Co  (HKSE:03363) 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
=26.922/1234.991
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(26.922 / 3047.062)*(3047.062 / 3384.5125)*(3384.5125 / 1234.991)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.88 %*0.9003*2.7405
=ROA %*Equity Multiplier
=0.79 %*2.7405
=2.18 %

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
=26.922/1234.991
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (26.922 / 46.062) * (46.062 / 100.938) * (100.938 / 3047.062) * (3047.062 / 3384.5125) * (3384.5125 / 1234.991)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5845 * 0.4563 * 3.31 % * 0.9003 * 2.7405
=2.18 %

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.


Zhengye International Holdings Co ROE % Related Terms


Zhengye International Holdings Co ROE % Historical Data

* Premium members only.

The historical data trend for Zhengye International Holdings Co'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.

Zhengye International Holdings Co ROE % Chart

Zhengye International Holdings Co 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 15.72 4.04 -1.58 3.25 1.31

Zhengye International Holdings Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 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 Premium Member Only Premium Member Only Premium Member Only -0.36 2.72 3.83 0.42 2.18

Zhengye International Holdings Co ROE % Competitor Comparison

For the Paper & Paper Products subindustry, Zhengye International Holdings 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.


Zhengye International Holdings Co ROE % vs Forest Products Industry

For the Forest Products industry and Basic Materials sector, Zhengye International Holdings Co's ROE % distribution charts can be found below:

* The bar in red indicates where Zhengye International Holdings Co's ROE % falls into.


HKSE:03363
44GF Score
Zhengye International Holdings Co Ltd HKSE:03363
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhengye International Holdings Co ROE % Calculation

Zhengye International Holdings Co'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 )
=16.03/( (1196.25+1242.747)/ 2 )
=16.03/1219.4985
=1.31 %

Zhengye International Holdings Co'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 )
=26.922/( (1227.235+1242.747)/ 2 )
=26.922/1234.991
=2.18 %

* 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 2.18% mean?
Zhengye International Holdings Co (HKSE:03363) has a ROE % of 2.18% 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 Zhengye International Holdings Co and its competitors. This is 71% below median its historical median of 7.46. According to the industry distribution chart, Zhengye International Holdings Co ranks #157 out of 280 companies in the Forest Products industry, placing it in the top 56.1%.
Is Zhengye International Holdings Co's ROE % too high?
Zhengye International Holdings Co's current ROE % of 2.18% is 71% below median its 10-year median of 7.46. The Forest Products industry median ROE % is 2.17. Zhengye International Holdings Co's value of 2.18% is 0.5% above this industry median. Based on the distribution chart, Zhengye International Holdings Co ranks #157 out of 280 companies in the Forest Products industry, which is below the industry midpoint. Overall, Zhengye International Holdings Co has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhengye International Holdings Co's ROE % compare to competitors?
According to the Forest Products industry distribution chart, Zhengye International Holdings Co ranks #157 out of 280 companies for ROE %. This places Zhengye International Holdings Co in the lower half of its industry. The industry median ROE % is 2.17. Zhengye International Holdings Co's value of 2.18% is 0.5% above this benchmark. While the company's 10-year median is 7.46 vs. the industry median of 2.17, Zhengye International Holdings Co 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 Forest Products company?
The median ROE % among Forest Products companies is 2.17, based on 280 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. Zhengye International Holdings Co's current ROE % of 2.18% is 0.5% 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 Zhengye International Holdings Co and its competitors. For the Forest Products industry, the median ROE % is 2.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhengye International Holdings Co's current ROE % is 2.18%, which is 71% below median its own 10-year median of 7.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhengye International Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Zhengye International Holdings Co (HKSE:03363) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.41, compared to a current price of HK$0.34 — trading 17.1% below its estimated fair value. The current ROE % is 2.18%, which is 71% below median its 10-year median of 7.46 and 0.5% above the Forest Products industry median of 2.17. Zhengye International Holdings Co's overall GF Score™ is 44/100 with 8 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 Zhengye International Holdings Co (HKSE:03363), the current ROE % is 2.18% 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 Zhengye International Holdings Co (HKSE:03363) Overvalued in 2026?

Based on GuruFocus' analysis, Zhengye International Holdings Co stock appears to be undervalued. The current stock price of HK$0.34 is trading 17.1% below its estimated GF Value™ of HK$0.41. GuruFocus considers Zhengye International Holdings Co to be Modestly Undervalued.

Key valuation signals for HKSE:03363:

  • ROE %: 2.18% (71% below median its 10-year median of 7.46)
  • GF Value™: HK$0.41 vs. price of HK$0.34 (17.1% below fair value)
  • GF Score™: 44/100 with 8 warning signs
  • Industry Position: 0.5% above the Forest Products median (#157 of 280)

No single metric tells the full story. See the HKSE:03363 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhengye International Holdings Co Business Description

Address 28 Boai No.6 Road, 20th Floor, Building 2, Ocean Plaza, Eastern District, Guangdong, Zhongshan, CHN
Zhengye International Holdings Co Ltd is an investment holding company. The company, along with its subsidiaries, is principally engaged in the manufacturing and sale of paper, paperboard and paper-based packaging products. Operating Segments of the company are: Packaging paper segment produces and sells corrugated medium paper and craft paper; and Paper-based packaging products segment produces and sells craft cartons, color-printed cartons, honeycomb paper products and color box packaging. It operates in PRC. It generates maximum revenue from Sales of packaging paper products.
44GF Score

Get the complete analysis for HKSE:03363

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

HK$0.34
Price
HK$0.41
GF Value