Shandong Hiking International Co (SHSE:600735) ROE %: 1.40% (As of Mar. 2026) — 76% Below Median


SHSE:600735 Shandong Hiking International Co Ltd SHSE:600735
61 GF Score
Price ¥6.29
GF Value ¥3.85
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is Shandong Hiking International Co ROE %?

Shandong Hiking International Co SHSE:600735 -0.47% 61 ROE % is 1.40% as of Mar. 2026, which is 76% below its 10-year median of 5.76. GuruFocus rates SHSE:600735 with a GF Score™ of 61/100 and a GF Value™ of ¥3.85 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 156 Industrial Distribution companies, Shandong Hiking International Co ranks worse than 94.87% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Shandong Hiking International Co's annualized net income for the quarter that ended in Mar. 2026 was ¥15 Mil. Shandong Hiking International Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥1,067 Mil. Therefore, Shandong Hiking International Co's annualized ROE % for the quarter that ended in Mar. 2026 was 1.40%.

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

SHSE:600735' s ROE % Range Over the Past 10 Years
Min: -11.24   Med: 5.76   Max: 9.3
Current: -11.24

During the past 13 years, Shandong Hiking International Co's highest ROE % was 9.30%. The lowest was -11.24%. And the median was 5.76%.

SHSE:600735's ROE % is ranked worse than
94.87% of 156 companies
in the Industrial Distribution industry
Industry Median: 7.235 vs SHSE:600735: -11.24

Shandong Hiking International Co  (SHSE:600735) 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: Mar. 2026 )
=Net Income/Total Stockholders Equity
=14.968/1067.0045
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(14.968 / 1425.604)*(1425.604 / 1618.659)*(1618.659 / 1067.0045)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.05 %*0.8807*1.517
=ROA %*Equity Multiplier
=0.92 %*1.517
=1.40 %

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: Mar. 2026 )
=Net Income/Total Stockholders Equity
=14.968/1067.0045
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (14.968 / 80.864) * (80.864 / 99.312) * (99.312 / 1425.604) * (1425.604 / 1618.659) * (1618.659 / 1067.0045)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.1851 * 0.8142 * 6.97 % * 0.8807 * 1.517
=1.40 %

Note: The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


Shandong Hiking International Co ROE % Related Terms


Shandong Hiking International Co ROE % Historical Data

* Premium members only.

The historical data trend for Shandong Hiking International Co'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.

Shandong Hiking International Co ROE % Chart

Shandong Hiking International Co 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 6.84 4.28 3.81 -10.51 -11.22

Shandong Hiking International Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 2.08 2.16 1.17 -50.35 1.40

SHSE:600735 vs GWW, FAST, FERG: ROE % Comparison

For the Industrial Distribution subindustry, Shandong Hiking International 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.


Shandong Hiking International Co ROE % vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Shandong Hiking International Co's ROE % distribution charts can be found below:

* The bar in red indicates where Shandong Hiking International Co's ROE % falls into.


SHSE:600735
61GF Score
Shandong Hiking International Co Ltd SHSE:600735
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shandong Hiking International Co ROE % Calculation

Shandong Hiking International Co'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 )
=-127.498/( (1206.288+1067.242)/ 2 )
=-127.498/1136.765
=-11.22 %

Shandong Hiking International Co's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=14.968/( (1067.242+1066.767)/ 2 )
=14.968/1067.0045
=1.40 %

* 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 four times the quarterly (Mar. 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 1.40% mean?
Shandong Hiking International Co (SHSE:600735) has a ROE % of 1.40% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Shandong Hiking International Co and its competitors. This is 76% below median its historical median of 5.76. According to the industry distribution chart, Shandong Hiking International Co ranks #148 out of 156 companies in the Industrial Distribution industry, placing it in the top 94.9%.
Is Shandong Hiking International Co's ROE % too high?
Shandong Hiking International Co's current ROE % of 1.40% is 76% below median its 10-year median of 5.76. The Industrial Distribution industry median ROE % is 7.24. Shandong Hiking International Co's value of 1.40% is 80.6% below this industry median. Based on the distribution chart, Shandong Hiking International Co ranks #148 out of 156 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, Shandong Hiking International Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Hiking International Co's ROE % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Shandong Hiking International Co ranks #148 out of 156 companies for ROE %. This places Shandong Hiking International Co in the lower half of its industry. The industry median ROE % is 7.24. Shandong Hiking International Co's value of 1.40% is 80.6% below this benchmark. While the company's 10-year median is 5.76 vs. the industry median of 7.24, Shandong Hiking International 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 an Industrial Distribution company?
The median ROE % among Industrial Distribution companies is 7.24, based on 156 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. Shandong Hiking International Co's current ROE % of 1.40% is 80.6% 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 Shandong Hiking International Co and its competitors. For the Industrial Distribution industry, the median ROE % is 7.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Hiking International Co's current ROE % is 1.40%, which is 76% below median its own 10-year median of 5.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Hiking International Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Hiking International Co (SHSE:600735) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥3.85, compared to a current price of ¥6.29 — trading 63.4% above its estimated fair value. The current ROE % is 1.40%, which is 76% below median its 10-year median of 5.76 and 80.6% below the Industrial Distribution industry median of 7.24. Shandong Hiking International Co's overall GF Score™ is 61/100 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 Shandong Hiking International Co (SHSE:600735), the current ROE % is 1.40% as of Mar. 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 Shandong Hiking International Co (SHSE:600735) Overvalued in 2026?

Based on GuruFocus' analysis, Shandong Hiking International Co stock appears to be overvalued. The current stock price of ¥6.29 is trading 63.4% above its estimated GF Value™ of ¥3.85. GuruFocus considers Shandong Hiking International Co to be Significantly Overvalued.

Key valuation signals for SHSE:600735:

  • ROE %: 1.40% (76% below median its 10-year median of 5.76)
  • GF Value™: ¥3.85 vs. price of ¥6.29 (63.4% above fair value)
  • GF Score™: 61/100 with 2 warning signs
  • Industry Position: 80.6% below the Industrial Distribution median (#148 of 156)

No single metric tells the full story. See the SHSE:600735 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shandong Hiking International Co Business Description

Address No. 131, Songling Road, 17th Floor, Laoshan District, Shandong Province, Qingdao, CHN, 266101
Shandong Hiking International Co Ltd is engaged in the international trade of textile products, aquatic products, and non-ferrous metal products.
61GF Score

Get the complete analysis for SHSE:600735

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

¥6.29
Price
¥3.85
GF Value