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Renheng Enterprise HoldingsHKSE:03628 61 ROE % is 1.25% as of Dec. 2025, which is 105% above its 10-year median of 0.61. GuruFocus rates HKSE:03628 with a GF Score™ of 61/100 and a GF Value™ of HK$0.17 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 3,012 Industrial Products companies, Renheng Enterprise Holdings ranks better than 66.9% on this metric.
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 Specialty Industrial Machinery subindustry, Renheng Enterprise 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.
Renheng Enterprise Holdings ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Renheng Enterprise Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Renheng Enterprise 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.
Renheng Enterprise Holdings (HKSE:03628) has a ROE % of 1.25% 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 Renheng Enterprise Holdings and its competitors. This is 105% above median its historical median of 0.61. According to the industry distribution chart, Renheng Enterprise Holdings ranks #997 out of 3012 companies in the Industrial Products industry, placing it in the top 33.1%.
Is Renheng Enterprise Holdings' ROE % too high?
Renheng Enterprise Holdings' current ROE % of 1.25% is 105% above median its 10-year median of 0.61. The Industrial Products industry median ROE % is 6.19. Renheng Enterprise Holdings' value of 1.25% is 79.8% below this industry median. Based on the distribution chart, Renheng Enterprise Holdings ranks #997 out of 3012 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Renheng Enterprise Holdings has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Renheng Enterprise Holdings' ROE % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Renheng Enterprise Holdings ranks #997 out of 3012 companies for ROE %. This puts Renheng Enterprise Holdings in the upper half of its industry. The industry median ROE % is 6.19. Renheng Enterprise Holdings' value of 1.25% is 79.8% below this benchmark. While the company's 10-year median is 0.61 vs. the industry median of 6.19, Renheng Enterprise Holdings has consistently been below 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 6.19, based on 3,012 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. Renheng Enterprise Holdings's current ROE % of 1.25% is 79.8% below 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 Renheng Enterprise Holdings and its competitors. For the Industrial Products industry, the median ROE % is 6.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renheng Enterprise Holdings's current ROE % is 1.25%, which is 105% above median its own 10-year median of 0.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renheng Enterprise Holdings stock overvalued right now?
Based on GuruFocus' analysis, Renheng Enterprise Holdings (HKSE:03628) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.20 — trading 17.6% above its estimated fair value. The current ROE % is 1.25%, which is 105% above median its 10-year median of 0.61 and 79.8% below the Industrial Products industry median of 6.19. Renheng Enterprise Holdings' overall GF Score™ is 61/100 with 5 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 Renheng Enterprise Holdings (HKSE:03628), the current ROE % is 1.25% 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 Renheng Enterprise Holdings (HKSE:03628) Overvalued in 2026?
Based on GuruFocus' analysis, Renheng Enterprise Holdings stock appears to be overvalued.
The current stock price of HK$0.20 is trading 17.6% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Renheng Enterprise Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:03628:
ROE %: 1.25% (105% above median its 10-year median of 0.61)
GF Value™: HK$0.17 vs. price of HK$0.20 (17.6% above fair value)
Industry Position: 79.8% below the Industrial Products median (#997 of 3012)
No single metric tells the full story. See the HKSE:03628 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renheng Enterprise Holdings Ltd is an investment holding company that along with its subsidiaries, is engaged in the manufacture and sale of tobacco machinery products in the PRC. The company mainly produces three types of cataloged special-purpose tobacco machinery products, namely casing and flavoring systems, pneumatic feeding systems, and pre-pressing packing machines. It is also engaged in providing maintenance, overhaul, and modification services for tobacco machinery products. The company generates a majority of its revenue from construction contracts for casing and flavouring systems. All of the Group's revenue are derived in the PRC.
61GF Score
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