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Zhongzhi Pharmaceutical HoldingsHKSE:03737 47 ROE % is 1.57% as of Dec. 2025, which is 86% below its 10-year median of 11.16. GuruFocus rates HKSE:03737 with a GF Score™ of 47/100 and a GF Value™ of HK$0.89 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 935 Drug Manufacturers companies, Zhongzhi Pharmaceutical Holdings ranks worse than 63.32% 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.
Zhongzhi Pharmaceutical Holdings ROE % Related Terms
Zhongzhi Pharmaceutical Holdings ROE % Historical Data
* 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 Drug Manufacturers - Specialty & Generic subindustry, Zhongzhi Pharmaceutical 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.
Zhongzhi Pharmaceutical Holdings ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zhongzhi Pharmaceutical Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Zhongzhi Pharmaceutical 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.
Zhongzhi Pharmaceutical Holdings (HKSE:03737) has a ROE % of 1.57% 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 Zhongzhi Pharmaceutical Holdings and its competitors. This is 86% below median its historical median of 11.16. Over the past decade, Zhongzhi Pharmaceutical Holdings' ROE % has ranged from 1.59 to 18.03. According to the industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #592 out of 935 companies in the Drug Manufacturers industry, placing it in the top 63.3%.
Is Zhongzhi Pharmaceutical Holdings' ROE % too high?
Zhongzhi Pharmaceutical Holdings' current ROE % of 1.57% is 86% below median its 10-year median of 11.16. Over the past 10 years, this metric has ranged from a low of 1.59 to a high of 18.03. The Drug Manufacturers industry median ROE % is 6.14. Zhongzhi Pharmaceutical Holdings' value of 1.57% is 74.4% below this industry median. Based on the distribution chart, Zhongzhi Pharmaceutical Holdings ranks #592 out of 935 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zhongzhi Pharmaceutical Holdings has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhongzhi Pharmaceutical Holdings' ROE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #592 out of 935 companies for ROE %. This places Zhongzhi Pharmaceutical Holdings in the lower half of its industry. The industry median ROE % is 6.14. Zhongzhi Pharmaceutical Holdings' value of 1.57% is 74.4% below this benchmark. Historically, Zhongzhi Pharmaceutical Holdings' own ROE % has ranged from 1.59 to 18.03 over the past decade. While the company's 10-year median is 11.16 vs. the industry median of 6.14, Zhongzhi Pharmaceutical 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 a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 6.14, based on 935 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. Zhongzhi Pharmaceutical Holdings's current ROE % of 1.57% is 74.4% 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 Zhongzhi Pharmaceutical Holdings and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongzhi Pharmaceutical Holdings's current ROE % is 1.57%, which is 86% below median its own 10-year median of 11.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongzhi Pharmaceutical Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings (HKSE:03737) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.89, compared to a current price of HK$0.71 — trading 20.2% below its estimated fair value. The current ROE % is 1.57%, which is 86% below median its 10-year median of 11.16 and 74.4% below the Drug Manufacturers industry median of 6.14. Zhongzhi Pharmaceutical Holdings' overall GF Score™ is 47/100 with 7 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737), the current ROE % is 1.57% 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings stock appears to be undervalued.
The current stock price of HK$0.71 is trading 20.2% below its estimated GF Value™ of HK$0.89.
GuruFocus considers Zhongzhi Pharmaceutical Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:03737:
ROE %: 1.57% (86% below median its 10-year median of 11.16)
GF Value™: HK$0.89 vs. price of HK$0.71 (20.2% below fair value)
Industry Position: 74.4% below the Drug Manufacturers median (#592 of 935)
No single metric tells the full story. See the HKSE:03737 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongzhi Pharmaceutical Holdings Ltd is an investment holding company principally engaged in the manufacture and sale of pharmaceutical products in the PRC. The Group is a large industrial and trading enterprise group featuring researching, producing, and selling traditional Chinese medicine preparations, prepared slices of Chinese crude drugs, and foods. Its products include Shenqi Koufuye, Yinhuang Jiaonang, Yinhuang Keli, and others. Its segments are the pharmaceutical manufacturing segment, which generates maximum revenue, is engaged in the research and development, manufacturing, and sale of Chinese patent medicines and decoction pieces consisting of traditional decoction pieces and modern decoction pieces, and the operation of the chain pharmacies segment.
47GF Score
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