Freetech Road Recycling Technology (Holdings) (HKSE:06888) ROE %: -11.48% (As of Jun. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Freetech Road Recycling Technology (Holdings) ROE %?

Freetech Road Recycling Technology (Holdings) HKSE:06888 -2.44% ROE % is -11.48% as of Jun. 2026. The stock has 7 warning signs investors should review. Among 1,756 Construction companies, Freetech Road Recycling Technology (Holdings) ranks worse than 86.85% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Freetech Road Recycling Technology (Holdings)'s annualized net income for the quarter that ended in Jun. 2026 was HK$-75.47 Mil. Freetech Road Recycling Technology (Holdings)'s average Total Stockholders Equity over the quarter that ended in Jun. 2026 was HK$659.98 Mil. Therefore, Freetech Road Recycling Technology (Holdings)'s annualized ROE % for the quarter that ended in Jun. 2026 was -11.44%.

The historical rank and industry rank for Freetech Road Recycling Technology (Holdings)'s ROE % or its related term are showing as below:

HKSE:06888' s ROE % Range Over the Past 10 Years
Min: -26.51   Med: 1.11   Max: 4.29
Current: -12.49

During the past 13 years, Freetech Road Recycling Technology (Holdings)'s highest ROE % was 4.29%. The lowest was -26.51%. And the median was 1.11%.

HKSE:06888's ROE % is ranked worse than
86.85% of 1756 companies
in the Construction industry
Industry Median: 6.76 vs HKSE:06888: -12.49

Freetech Road Recycling Technology (Holdings)  (HKSE:06888) 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: Jun. 2026 )
=Net Income/Total Stockholders Equity
=-75.470000000592/659.97700000204
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-75.470000000592 / 24.824000000194)*(24.824000000194 / 944.89500000291)*(944.89500000291 / 659.97700000204)
=Net Margin %*Asset Turnover*Equity Multiplier
=-304.02 %*0.0263*1.4317
=ROA %*Equity Multiplier
=-8 %*1.4317
=-11.44 %

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: Jun. 2026 )
=Net Income/Total Stockholders Equity
=-75.470000000592/659.97700000204
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-75.470000000592 / -81.928000000642) * (-81.928000000642 / -83.386000000654) * (-83.386000000654 / 24.824000000194) * (24.824000000194 / 944.89500000291) * (944.89500000291 / 659.97700000204)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9212 * 0.9825 * -335.91 % * 0.0263 * 1.4317
=-11.44 %

Note: The net income data used here is two times the semi-annual (Jun. 2026) net income data. The Revenue data used here is two times the semi-annual (Jun. 2026) 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.


Freetech Road Recycling Technology (Holdings) ROE % Related Terms


Freetech Road Recycling Technology (Holdings) ROE % Historical Data

* Premium members only.

The historical data trend for Freetech Road Recycling Technology (Holdings)'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.

Freetech Road Recycling Technology (Holdings) ROE % Chart

Freetech Road Recycling Technology (Holdings) 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 4.10 -3.00 1.27 0.71 -8.00

Freetech Road Recycling Technology (Holdings) Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
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 -1.73 3.10 -2.41 -13.45 -11.48

Freetech Road Recycling Technology (Holdings) ROE % Competitor Comparison

For the Infrastructure Operations subindustry, Freetech Road Recycling Technology (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.


Freetech Road Recycling Technology (Holdings) ROE % vs Construction Industry

For the Construction industry and Industrials sector, Freetech Road Recycling Technology (Holdings)'s ROE % distribution charts can be found below:

* The bar in red indicates where Freetech Road Recycling Technology (Holdings)'s ROE % falls into.



Freetech Road Recycling Technology (Holdings) ROE % Calculation

Freetech Road Recycling Technology (Holdings)'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 )
=-54.998000000018/( (699.17400000245+669.07000000246)/ 2 )
=-54.998000000018/684.12200000246
=-8.04 %

Freetech Road Recycling Technology (Holdings)'s annualized ROE % for the quarter that ended in Jun. 2026 is calculated as

ROE %=Net Income (Q: Jun. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Jun. 2026 ))/ count )
=-75.470000000592/( (669.07000000246+650.88400000161)/ 2 )
=-75.470000000592/659.97700000204
=-11.44 %

* 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 (Jun. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -11.48% mean?
Freetech Road Recycling Technology (Holdings) (HKSE:06888) has a ROE % of -11.48% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Freetech Road Recycling Technology (Holdings) and its competitors. According to the industry distribution chart, Freetech Road Recycling Technology (Holdings) ranks #1525 out of 1756 companies in the Construction industry, placing it in the top 86.8%.
Is Freetech Road Recycling Technology (Holdings)'s ROE % too high?
Freetech Road Recycling Technology (Holdings)'s current ROE % is -11.48%. Based on the distribution chart, Freetech Road Recycling Technology (Holdings) ranks #1525 out of 1756 companies in the Construction industry, which is in the bottom quartile relative to peers.
How does Freetech Road Recycling Technology (Holdings)'s ROE % compare to competitors?
According to the Construction industry distribution chart, Freetech Road Recycling Technology (Holdings) ranks #1525 out of 1756 companies for ROE %. This places Freetech Road Recycling Technology (Holdings) in the lower half of its industry. The industry median ROE % is 6.76. 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 6.76, based on 1,756 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. 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 Freetech Road Recycling Technology (Holdings) and its competitors. For the Construction industry, the median ROE % is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freetech Road Recycling Technology (Holdings)'s current ROE % is -11.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freetech Road Recycling Technology (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Freetech Road Recycling Technology (Holdings) (HKSE:06888) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.07, compared to a current price of HK$0.08 — trading 14.3% above its estimated fair value. The current ROE % is -11.48%. 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 Freetech Road Recycling Technology (Holdings) (HKSE:06888), the current ROE % is -11.48% as of Jun. 2026. 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.

Freetech Road Recycling Technology (Holdings) Business Description

Address 18 Whitfield Road, Room 2501, 25th Floor, Citicorp Centre, Causeway Bay, Hong Kong, HKG
Freetech Road Recycling Technology (Holdings) Ltd is an investment holding company engaged in the manufacturing and sale of road maintenance equipment and the provision of road maintenance services in the People's Republic of China (the PRC). The operating segments of the group are the APM service segment, where it provides APM services under the registered trademark (Road Doctor) to repair damaged asphalt pavement surfaces, and the APM equipment segment, where it manufactures and sells a wide range of APM equipment. It derives the majority of its revenue from APM Services. The company has a business presence in Mainland China and other overseas markets.