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HKSE:08139's ROE % is ranked worse than 73.39% of 1582
companies
in the Chemicals industry
Industry Median: 5.265
vs HKSE:08139: -0.04
Zhejiang Chang'an Renheng Technology Co (HKSE:08139) 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:
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.
Zhejiang Chang'an Renheng Technology Co ROE % Related Terms
Zhejiang Chang'an Renheng Technology Co 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.
Zhejiang Chang'an Renheng Technology Co ROE % Chart
Zhejiang Chang'an Renheng Technology Co Annual Data
For the Chemicals subindustry, Zhejiang Chang'an Renheng Technology 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.
Zhejiang Chang'an Renheng Technology Co ROE % vs Chemicals Industry
* 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.
Zhejiang Chang'an Renheng Technology Co (HKSE:08139) has a ROE % of 5.03% 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 Zhejiang Chang'an Renheng Technology Co and its competitors. This is 353% above median its historical median of 1.11. According to the industry distribution chart, Zhejiang Chang'an Renheng Technology Co ranks #1161 out of 1582 companies in the Chemicals industry, placing it in the top 73.4%.
Is Zhejiang Chang'an Renheng Technology Co's ROE % too high?
Zhejiang Chang'an Renheng Technology Co's current ROE % of 5.03% is 353% above median its 10-year median of 1.11. The Chemicals industry median ROE % is 5.27. Zhejiang Chang'an Renheng Technology Co's value of 5.03% is 4.5% below this industry median. Based on the distribution chart, Zhejiang Chang'an Renheng Technology Co ranks #1161 out of 1582 companies in the Chemicals industry, which is below the industry midpoint. Overall, Zhejiang Chang'an Renheng Technology Co has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Chang'an Renheng Technology Co's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Zhejiang Chang'an Renheng Technology Co ranks #1161 out of 1582 companies for ROE %. This places Zhejiang Chang'an Renheng Technology Co in the lower half of its industry. The industry median ROE % is 5.27. Zhejiang Chang'an Renheng Technology Co's value of 5.03% is 4.5% below this benchmark. While the company's 10-year median is 1.11 vs. the industry median of 5.27, Zhejiang Chang'an Renheng Technology Co 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 Chemicals company?
The median ROE % among Chemicals companies is 5.27, based on 1,582 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. Zhejiang Chang'an Renheng Technology Co's current ROE % of 5.03% is 4.5% 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 Zhejiang Chang'an Renheng Technology Co and its competitors. For the Chemicals industry, the median ROE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Chang'an Renheng Technology Co's current ROE % is 5.03%, which is 353% above median its own 10-year median of 1.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Chang'an Renheng Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Chang'an Renheng Technology Co (HKSE:08139) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$1.67, compared to a current price of HK$1.22 — trading 26.9% below its estimated fair value. The current ROE % is 5.03%, which is 353% above median its 10-year median of 1.11 and 4.5% below the Chemicals industry median of 5.27. Zhejiang Chang'an Renheng Technology Co's overall GF Score™ is 65/100 with 6 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 Zhejiang Chang'an Renheng Technology Co (HKSE:08139), the current ROE % is 5.03% 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 Zhejiang Chang'an Renheng Technology Co (HKSE:08139) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Chang'an Renheng Technology Co stock appears to be undervalued.
The current stock price of HK$1.22 is trading 26.9% below its estimated GF Value™ of HK$1.67.
GuruFocus considers Zhejiang Chang'an Renheng Technology Co to be Modestly Undervalued.
Key valuation signals for HKSE:08139:
ROE %: 5.03% (353% above median its 10-year median of 1.11)
GF Value™: HK$1.67 vs. price of HK$1.22 (26.9% below fair value)
Industry Position: 4.5% below the Chemicals median (#1161 of 1582)
No single metric tells the full story. See the HKSE:08139 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Chang'an Renheng Technology Co Business Description
Zhejiang Chang'an Renheng Technology Co Ltd is principally engaged in the business of development, production, and sale of bentonite fine chemicals in China. It uses bentonite as its basic raw material to manufacture paper chemicals, organic bentonite, inorganic gel, bentonite for metallurgy pellets, quality calcium-bentonite, and other products. The majority of its revenue comes from the sale of organic bentonite.
65GF Score
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