Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) ROE %: 7.90% (As of Dec. 2025) — 58% Below Median

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HKSE:03613 Beijing Tong Ren Tang Chinese Medicine Co Ltd HKSE:03613
89 GF Score
Price HK$6.90
GF Value HK$9.64
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Beijing Tong Ren Tang Chinese Medicine Co ROE %?

Beijing Tong Ren Tang Chinese Medicine Co HKSE:03613 -1.85% 89 ROE % is 7.90% as of Dec. 2025, which is 58% below its 10-year median of 19.00. GuruFocus rates HKSE:03613 with a GF Score™ of 89/100 and a GF Value™ of HK$9.64 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 938 Drug Manufacturers companies, Beijing Tong Ren Tang Chinese Medicine Co ranks better than 63.22% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Beijing Tong Ren Tang Chinese Medicine Co's annualized net income for the quarter that ended in Dec. 2025 was HK$325 Mil. Beijing Tong Ren Tang Chinese Medicine Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was HK$4,108 Mil. Therefore, Beijing Tong Ren Tang Chinese Medicine Co's annualized ROE % for the quarter that ended in Dec. 2025 was 7.90%.

The historical rank and industry rank for Beijing Tong Ren Tang Chinese Medicine Co's ROE % or its related term are showing as below:

HKSE:03613' s ROE % Range Over the Past 10 Years
Min: 9.61   Med: 19   Max: 21.51
Current: 9.69

During the past 13 years, Beijing Tong Ren Tang Chinese Medicine Co's highest ROE % was 21.51%. The lowest was 9.61%. And the median was 19.00%.

HKSE:03613's ROE % is ranked better than
63.22% of 938 companies
in the Drug Manufacturers industry
Industry Median: 6.05 vs HKSE:03613: 9.69

Beijing Tong Ren Tang Chinese Medicine Co  (HKSE:03613) 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
=324.7/4108.196
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(324.7 / 1503.242)*(1503.242 / 4597.6025)*(4597.6025 / 4108.196)
=Net Margin %*Asset Turnover*Equity Multiplier
=21.6 %*0.327*1.1191
=ROA %*Equity Multiplier
=7.06 %*1.1191
=7.90 %

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
=324.7/4108.196
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (324.7 / 430.036) * (430.036 / 527.716) * (527.716 / 1503.242) * (1503.242 / 4597.6025) * (4597.6025 / 4108.196)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7551 * 0.8149 * 35.11 % * 0.327 * 1.1191
=7.90 %

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.


Beijing Tong Ren Tang Chinese Medicine Co ROE % Related Terms


Beijing Tong Ren Tang Chinese Medicine Co ROE % Historical Data

* Premium members only.

The historical data trend for Beijing Tong Ren Tang Chinese Medicine 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.

Beijing Tong Ren Tang Chinese Medicine Co ROE % Chart

Beijing Tong Ren Tang Chinese Medicine 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 18.89 18.39 14.47 12.60 9.61

Beijing Tong Ren Tang Chinese Medicine 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 14.72 11.46 14.24 11.59 7.90

HKSE:03613 vs ZTS, UTHR: ROE % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Beijing Tong Ren Tang Chinese Medicine 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.


Beijing Tong Ren Tang Chinese Medicine Co ROE % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Beijing Tong Ren Tang Chinese Medicine Co's ROE % distribution charts can be found below:

* The bar in red indicates where Beijing Tong Ren Tang Chinese Medicine Co's ROE % falls into.


HKSE:03613
89GF Score
Beijing Tong Ren Tang Chinese Medicine Co Ltd HKSE:03613
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Beijing Tong Ren Tang Chinese Medicine Co ROE % Calculation

Beijing Tong Ren Tang Chinese Medicine 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 )
=397.216/( (4075.36+4187.89)/ 2 )
=397.216/4131.625
=9.61 %

Beijing Tong Ren Tang Chinese Medicine 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 )
=324.7/( (4028.502+4187.89)/ 2 )
=324.7/4108.196
=7.90 %

* 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 7.90% mean?
Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) has a ROE % of 7.90% 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 Beijing Tong Ren Tang Chinese Medicine Co and its competitors. This is 58% below median its historical median of 19.00. Over the past decade, Beijing Tong Ren Tang Chinese Medicine Co's ROE % has ranged from 9.61 to 21.51. According to the industry distribution chart, Beijing Tong Ren Tang Chinese Medicine Co ranks #345 out of 938 companies in the Drug Manufacturers industry, placing it in the top 36.8%.
Is Beijing Tong Ren Tang Chinese Medicine Co's ROE % too high?
Beijing Tong Ren Tang Chinese Medicine Co's current ROE % of 7.90% is 58% below median its 10-year median of 19.00. Over the past 10 years, this metric has ranged from a low of 9.61 to a high of 21.51. The Drug Manufacturers industry median ROE % is 6.05. Beijing Tong Ren Tang Chinese Medicine Co's value of 7.90% is 30.6% above this industry median. Based on the distribution chart, Beijing Tong Ren Tang Chinese Medicine Co ranks #345 out of 938 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Beijing Tong Ren Tang Chinese Medicine Co has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Beijing Tong Ren Tang Chinese Medicine Co's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Beijing Tong Ren Tang Chinese Medicine Co ranks #345 out of 938 companies for ROE %. This puts Beijing Tong Ren Tang Chinese Medicine Co in the upper half of its industry. The industry median ROE % is 6.05. Beijing Tong Ren Tang Chinese Medicine Co's value of 7.90% is 30.6% above this benchmark. Historically, Beijing Tong Ren Tang Chinese Medicine Co's own ROE % has ranged from 9.61 to 21.51 over the past decade. While the company's 10-year median is 19.00 vs. the industry median of 6.05, Beijing Tong Ren Tang Chinese Medicine 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 Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 6.05, based on 938 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. Beijing Tong Ren Tang Chinese Medicine Co's current ROE % of 7.90% is 30.6% 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 Beijing Tong Ren Tang Chinese Medicine Co and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beijing Tong Ren Tang Chinese Medicine Co's current ROE % is 7.90%, which is 58% below median its own 10-year median of 19.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beijing Tong Ren Tang Chinese Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$9.64, compared to a current price of HK$6.90 — trading 28.4% below its estimated fair value. The current ROE % is 7.90%, which is 58% below median its 10-year median of 19.00 and 30.6% above the Drug Manufacturers industry median of 6.05. Beijing Tong Ren Tang Chinese Medicine Co's overall GF Score™ is 89/100 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 Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613), the current ROE % is 7.90% 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 Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) Overvalued in 2026?

Based on GuruFocus' analysis, Beijing Tong Ren Tang Chinese Medicine Co stock appears to be undervalued. The current stock price of HK$6.90 is trading 28.4% below its estimated GF Value™ of HK$9.64. GuruFocus considers Beijing Tong Ren Tang Chinese Medicine Co to be Modestly Undervalued.

Key valuation signals for HKSE:03613:

  • ROE %: 7.90% (58% below median its 10-year median of 19.00)
  • GF Value™: HK$9.64 vs. price of HK$6.90 (28.4% below fair value)
  • GF Score™: 89/100 with 3 warning signs
  • Industry Position: 30.6% above the Drug Manufacturers median (#345 of 938)

No single metric tells the full story. See the HKSE:03613 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Beijing Tong Ren Tang Chinese Medicine Co Business Description

Other Exchanges TQR:Germany
Address Convention Plaza, 1 Harbour Road, Room 1405-1409, Office Tower, Wanchai, Hong Kong, HKG
Beijing Tong Ren Tang Chinese Medicine Co Ltd is a pharmaceutical retailer that specializes in Chinese medicine operating in three segments; Hong Kong includes the sale of Chinese medicine products and healthcare products and the provision of Chinese medical consultation and treatments through retail and wholesale of Chinese medicine products and healthcare products; Chinese Mainland (PRC, but excluding Hong Kong, Macao, and Taiwan) includes wholesale of healthcare products in Chinese Mainland and the sole distributor of Tong Ren Tang branded products of Tong Ren Tang Technologies and Tong Ren Tang Ltd; and Overseas includes retail and wholesale of Chinese medicine products and healthcare products and provision of Chinese medical consultation and treatments.
89GF Score

Get the complete analysis for HKSE:03613

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

HK$6.90
Price
HK$9.64
GF Value