Zhongzi International Holdings (HKSE:08118) ROE %: 1.22% (As of Oct. 2025) — 90% Below Median

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.

HKSE:08118 Zhongzi International Holdings Ltd HKSE:08118
46 GF Score
Price HK$0.09
GF Value HK$0.07
Valuation Modestly Overvalued
! 4 Warning Signs
View Full Analysis

What is Zhongzi International Holdings ROE %?

Zhongzi International Holdings HKSE:08118 -31.01% 46 ROE % is 1.22% as of Oct. 2025, which is 90% below its 10-year median of 12.05. GuruFocus rates HKSE:08118 with a GF Score™ of 46/100 and a GF Value™ of HK$0.07 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 429 Furnishings, Fixtures & Appliances companies, Zhongzi International Holdings ranks worse than 98.83% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zhongzi International Holdings's annualized net income for the quarter that ended in Oct. 2025 was HK$0.20 Mil. Zhongzi International Holdings's average Total Stockholders Equity over the quarter that ended in Oct. 2025 was HK$16.36 Mil. Therefore, Zhongzi International Holdings's annualized ROE % for the quarter that ended in Oct. 2025 was 1.22%.

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

HKSE:08118' s ROE % Range Over the Past 10 Years
Min: -139.74   Med: 12.05   Max: 42.34
Current: -139.74

During the past 11 years, Zhongzi International Holdings's highest ROE % was 42.34%. The lowest was -139.74%. And the median was 12.05%.

HKSE:08118's ROE % is ranked worse than
98.83% of 429 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 4.45 vs HKSE:08118: -139.74

Zhongzi International Holdings  (HKSE:08118) 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: Oct. 2025 )
=Net Income/Total Stockholders Equity
=0.2/16.363
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.2 / 45.702)*(45.702 / 51.7575)*(51.7575 / 16.363)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.44 %*0.883*3.1631
=ROA %*Equity Multiplier
=0.39 %*3.1631
=1.22 %

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: Oct. 2025 )
=Net Income/Total Stockholders Equity
=0.2/16.363
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.2 / 0.248) * (0.248 / 0.94) * (0.94 / 45.702) * (45.702 / 51.7575) * (51.7575 / 16.363)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8065 * 0.2638 * 2.06 % * 0.883 * 3.1631
=1.22 %

Note: The net income data used here is two times the semi-annual (Oct. 2025) net income data. The Revenue data used here is two times the semi-annual (Oct. 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.


Zhongzi International Holdings ROE % Related Terms


Zhongzi International Holdings ROE % Historical Data

* Premium members only.

The historical data trend for Zhongzi International 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.

Zhongzi International Holdings ROE % Chart

Zhongzi International Holdings Annual Data
Trend Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24 Apr25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.93 3.37 -52.07 -39.66 -112.69

Zhongzi International Holdings Semi-Annual Data
Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24 Oct24 Apr25 Oct25
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 -80.79 1.89 -225.49 1.22

HKSE:08118 vs SN, SGI, MHK: ROE % Comparison

For the Furnishings, Fixtures & Appliances subindustry, Zhongzi International 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.


Zhongzi International Holdings ROE % vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Zhongzi International Holdings's ROE % distribution charts can be found below:

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


HKSE:08118
46GF Score
Zhongzi International Holdings Ltd HKSE:08118
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhongzi International Holdings ROE % Calculation

Zhongzi International Holdings's annualized ROE % for the fiscal year that ended in Apr. 2025 is calculated as

ROE %=Net Income (A: Apr. 2025 )/( (Total Stockholders Equity (A: Apr. 2024 )+Total Stockholders Equity (A: Apr. 2025 ))/ count )
=-44.891/( (63.699+15.971)/ 2 )
=-44.891/39.835
=-112.69 %

Zhongzi International Holdings's annualized ROE % for the quarter that ended in Oct. 2025 is calculated as

ROE %=Net Income (Q: Oct. 2025 )/( (Total Stockholders Equity (Q: Apr. 2025 )+Total Stockholders Equity (Q: Oct. 2025 ))/ count )
=0.2/( (15.971+16.755)/ 2 )
=0.2/16.363
=1.22 %

* 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 (Oct. 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 1.22% mean?
Zhongzi International Holdings (HKSE:08118) has a ROE % of 1.22% as of Oct. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zhongzi International Holdings and its competitors. This is 90% below median its historical median of 12.05. According to the industry distribution chart, Zhongzi International Holdings ranks #424 out of 429 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 98.8%.
Is Zhongzi International Holdings' ROE % too high?
Zhongzi International Holdings' current ROE % of 1.22% is 90% below median its 10-year median of 12.05. The Furnishings, Fixtures & Appliances industry median ROE % is 4.45. Zhongzi International Holdings' value of 1.22% is 72.6% below this industry median. Based on the distribution chart, Zhongzi International Holdings ranks #424 out of 429 companies in the Furnishings, Fixtures & Appliances industry, which is in the bottom quartile relative to peers. Overall, Zhongzi International Holdings has a GF Score™ of 46/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhongzi International Holdings' ROE % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Zhongzi International Holdings ranks #424 out of 429 companies for ROE %. This places Zhongzi International Holdings in the lower half of its industry. The industry median ROE % is 4.45. Zhongzi International Holdings' value of 1.22% is 72.6% below this benchmark. While the company's 10-year median is 12.05 vs. the industry median of 4.45, Zhongzi International 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 Furnishings, Fixtures & Appliances company?
The median ROE % among Furnishings, Fixtures & Appliances companies is 4.45, based on 429 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. Zhongzi International Holdings's current ROE % of 1.22% is 72.6% 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 Zhongzi International Holdings and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROE % is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongzi International Holdings's current ROE % is 1.22%, which is 90% below median its own 10-year median of 12.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongzi International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongzi International Holdings (HKSE:08118) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.07, compared to a current price of HK$0.09 — trading 27.1% above its estimated fair value. The current ROE % is 1.22%, which is 90% below median its 10-year median of 12.05 and 72.6% below the Furnishings, Fixtures & Appliances industry median of 4.45. Zhongzi International Holdings' overall GF Score™ is 46/100 with 4 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 Zhongzi International Holdings (HKSE:08118), the current ROE % is 1.22% as of Oct. 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 Zhongzi International Holdings (HKSE:08118) Overvalued in 2026?

Based on GuruFocus' analysis, Zhongzi International Holdings stock appears to be overvalued. The current stock price of HK$0.09 is trading 27.1% above its estimated GF Value™ of HK$0.07. GuruFocus considers Zhongzi International Holdings to be Modestly Overvalued.

Key valuation signals for HKSE:08118:

  • ROE %: 1.22% (90% below median its 10-year median of 12.05)
  • GF Value™: HK$0.07 vs. price of HK$0.09 (27.1% above fair value)
  • GF Score™: 46/100 with 4 warning signs
  • Industry Position: 72.6% below the Furnishings, Fixtures & Appliances median (#424 of 429)

No single metric tells the full story. See the HKSE:08118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhongzi International Holdings Business Description

Address 40 Hung To Road, A13, 2nd Floor, Fung Ming Building, Kowloon, Kwun Tong, Hong Kong, HKG
Zhongzi International Holdings Ltd, formerly known as China Capital International Holdings Ltd, is focused on selling LED decorative lighting and illumination products prominently to overseas customers. Its offerings include standard products as well as customized solutions for holiday-related projects. It serves various retailers, wholesalers, real estate developers, agricultural technology producers, and other sectors.
46GF Score

Get the complete analysis for HKSE:08118

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

HK$0.09
Price
HK$0.07
GF Value