Khong Guan (SGX:K03) ROE %: 1.74% (As of Jan. 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.

SGX:K03 Khong Guan Ltd SGX:K03
67 GF Score
Price S$0.85
GF Value S$1.02
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Khong Guan ROE %?

Khong Guan SGX:K03 67 ROE % is 1.74% as of Jan. 2026. GuruFocus rates SGX:K03 with a GF Score™ of 67/100 and a GF Value™ of S$1.02 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 307 Retail - Defensive companies, Khong Guan ranks worse than 82.74% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Khong Guan's annualized net income for the quarter that ended in Jan. 2026 was S$0.97 Mil. Khong Guan's average Total Stockholders Equity over the quarter that ended in Jan. 2026 was S$55.72 Mil. Therefore, Khong Guan's annualized ROE % for the quarter that ended in Jan. 2026 was 1.74%.

The historical rank and industry rank for Khong Guan's ROE % or its related term are showing as below:

SGX:K03' s ROE % Range Over the Past 10 Years
Min: -2.49   Med: -0.21   Max: 2.08
Current: -0.61

During the past 13 years, Khong Guan's highest ROE % was 2.08%. The lowest was -2.49%. And the median was -0.21%.

SGX:K03's ROE % is ranked worse than
82.74% of 307 companies
in the Retail - Defensive industry
Industry Median: 8.56 vs SGX:K03: -0.61

Khong Guan  (SGX:K03) 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: Jan. 2026 )
=Net Income/Total Stockholders Equity
=0.972/55.721
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.972 / 76.544)*(76.544 / 68.971)*(68.971 / 55.721)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.27 %*1.1098*1.2378
=ROA %*Equity Multiplier
=1.41 %*1.2378
=1.74 %

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: Jan. 2026 )
=Net Income/Total Stockholders Equity
=0.972/55.721
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.972 / 1.536) * (1.536 / 2.012) * (2.012 / 76.544) * (76.544 / 68.971) * (68.971 / 55.721)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6328 * 0.7634 * 2.63 % * 1.1098 * 1.2378
=1.74 %

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


Khong Guan ROE % Related Terms


Khong Guan ROE % Historical Data

* Premium members only.

The historical data trend for Khong Guan'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.

Khong Guan ROE % Chart

Khong Guan Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.59 0.63 -0.50 -2.49 -0.73

Khong Guan Semi-Annual Data
Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
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 -2.00 -3.03 2.07 -3.00 1.74

SGX:K03 vs SYY, USFD, PFGC: ROE % Comparison

For the Food Distribution subindustry, Khong Guan'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.


Khong Guan ROE % vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Khong Guan's ROE % distribution charts can be found below:

* The bar in red indicates where Khong Guan's ROE % falls into.


SGX:K03
67GF Score
Khong Guan Ltd SGX:K03
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Khong Guan ROE % Calculation

Khong Guan's annualized ROE % for the fiscal year that ended in Jul. 2025 is calculated as

ROE %=Net Income (A: Jul. 2025 )/( (Total Stockholders Equity (A: Jul. 2024 )+Total Stockholders Equity (A: Jul. 2025 ))/ count )
=-0.395/( (53.467+54.561)/ 2 )
=-0.395/54.014
=-0.73 %

Khong Guan's annualized ROE % for the quarter that ended in Jan. 2026 is calculated as

ROE %=Net Income (Q: Jan. 2026 )/( (Total Stockholders Equity (Q: Jul. 2025 )+Total Stockholders Equity (Q: Jan. 2026 ))/ count )
=0.972/( (54.561+56.881)/ 2 )
=0.972/55.721
=1.74 %

* 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 (Jan. 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 1.74% mean?
Khong Guan (SGX:K03) has a ROE % of 1.74% as of Jan. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Khong Guan and its competitors. According to the industry distribution chart, Khong Guan ranks #254 out of 307 companies in the Retail - Defensive industry, placing it in the top 82.7%.
Is Khong Guan's ROE % too high?
Khong Guan's current ROE % is 1.74%. The Retail - Defensive industry median ROE % is 8.56. Khong Guan's value of 1.74% is 79.7% below this industry median. Based on the distribution chart, Khong Guan ranks #254 out of 307 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Khong Guan has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Khong Guan's ROE % compare to SYY and USFD?
According to the Retail - Defensive industry distribution chart, Khong Guan ranks #254 out of 307 companies for ROE %. This places Khong Guan in the lower half of its industry. The industry median ROE % is 8.56. Khong Guan's value of 1.74% is 79.7% below this benchmark. 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 Retail - Defensive company?
The median ROE % among Retail - Defensive companies is 8.56, based on 307 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. Khong Guan's current ROE % of 1.74% is 79.7% 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 Khong Guan and its competitors. For the Retail - Defensive industry, the median ROE % is 8.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Khong Guan's current ROE % is 1.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Khong Guan stock overvalued right now?
Based on GuruFocus' analysis, Khong Guan (SGX:K03) is currently considered Modestly Undervalued. The stock's GF Value™ is S$1.02, compared to a current price of S$0.85 — trading 17.2% below its estimated fair value. The current ROE % is 1.74% and 79.7% below the Retail - Defensive industry median of 8.56. Khong Guan's overall GF Score™ is 67/100 with 2 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 Khong Guan (SGX:K03), the current ROE % is 1.74% as of Jan. 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.

Is Khong Guan (SGX:K03) Overvalued in 2026?

Based on GuruFocus' analysis, Khong Guan stock appears to be undervalued. The current stock price of S$0.85 is trading 17.2% below its estimated GF Value™ of S$1.02. GuruFocus considers Khong Guan to be Modestly Undervalued.

Key valuation signals for SGX:K03:

  • ROE %: 1.74%
  • GF Value™: S$1.02 vs. price of S$0.85 (17.2% below fair value)
  • GF Score™: 67/100 with 2 warning signs
  • Industry Position: 79.7% below the Retail - Defensive median (#254 of 307)

No single metric tells the full story. See the SGX:K03 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Khong Guan Business Description

Address 2 MacTaggart Road, No. 03-01, Khong Guan Building, Singapore, SGP, 368078
Khong Guan Ltd is a Singapore-based investment holding company. It has two reportable operating segments; Trading of wheat flour and consumer goods, which is engaged in trading of wheat flour and consumer goods in Singapore and Malaysia; and Others which is involved in trading and holding of quoted and unquoted shares in Singapore and Malaysia. The company generates maximum revenue from the Trading of wheat flour and consumer goods segment. Geographically, it derives a majority of its revenue from Malaysia and the rest from Singapore.
67GF Score

Get the complete analysis for SGX:K03

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

S$0.85
Price
S$1.02
GF Value