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Hongfa Technology CoSHSE:600885 +0.76%95 ROE % is 15.06% as of Mar. 2026, which is 14% below its 10-year median of 17.59. GuruFocus rates SHSE:600885 with a GF Score™ of 95/100 and a GF Value™ of ¥30.81 (Fairly Valued). The stock has 2 warning signs investors should review. Among 3,001 Industrial Products companies, Hongfa Technology Co ranks better than 84.91% on this metric.
The historical rank and industry rank for Hongfa Technology Co's ROE % or its related term are showing as below:
SHSE:600885'
s ROE % Range Over the Past 10 Years
Min: 15.05 Med: 17.59 Max: 18.67
Current: 16.34
During the past 13 years, Hongfa Technology Co's highest ROE % was 18.67%. The lowest was 15.05%. And the median was 17.59%.
SHSE:600885's ROE % is ranked better than 84.91% of 3001
companies
in the Industrial Products industry
Industry Median: 5.86
vs SHSE:600885: 16.34
Hongfa Technology Co (SHSE:600885) 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 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.
* 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.
For the Electrical Equipment & Parts subindustry, Hongfa 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.
Hongfa Technology Co ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hongfa Technology Co's ROE % distribution charts can be found below:
* The bar in red indicates where Hongfa Technology Co's ROE % falls into.
* 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.
Hongfa Technology Co (SHSE:600885) has a ROE % of 15.06% 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 Hongfa Technology Co and its competitors. This is 14% below median its historical median of 17.59. Over the past decade, Hongfa Technology Co's ROE % has ranged from 15.05 to 18.67. According to the industry distribution chart, Hongfa Technology Co ranks #453 out of 3001 companies in the Industrial Products industry, placing it in the top 15.1%.
Is Hongfa Technology Co's ROE % too high?
Hongfa Technology Co's current ROE % of 15.06% is 14% below median its 10-year median of 17.59. Over the past 10 years, this metric has ranged from a low of 15.05 to a high of 18.67. The Industrial Products industry median ROE % is 5.86. Hongfa Technology Co's value of 15.06% is 157% above this industry median. Based on the distribution chart, Hongfa Technology Co ranks #453 out of 3001 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Hongfa Technology Co has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hongfa Technology Co's ROE % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hongfa Technology Co ranks #453 out of 3001 companies for ROE %. This places Hongfa Technology Co in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 5.86. Hongfa Technology Co's value of 15.06% is 157% above this benchmark. Historically, Hongfa Technology Co's own ROE % has ranged from 15.05 to 18.67 over the past decade. While the company's 10-year median is 17.59 vs. the industry median of 5.86, Hongfa Technology Co has consistently been above 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 Products company?
The median ROE % among Industrial Products companies is 5.86, based on 3,001 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. Hongfa Technology Co's current ROE % of 15.06% is 157% above 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 Hongfa Technology Co and its competitors. For the Industrial Products industry, the median ROE % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongfa Technology Co's current ROE % is 15.06%, which is 14% below median its own 10-year median of 17.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongfa Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongfa Technology Co (SHSE:600885) is currently considered Fairly Valued. The stock's GF Value™ is ¥30.81, compared to a current price of ¥31.70 — trading 2.9% above its estimated fair value. The current ROE % is 15.06%, which is 14% below median its 10-year median of 17.59 and 157% above the Industrial Products industry median of 5.86. Hongfa Technology Co's overall GF Score™ is 95/100 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 Hongfa Technology Co (SHSE:600885), the current ROE % is 15.06% 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 Hongfa Technology Co (SHSE:600885) Overvalued in 2026?
Based on GuruFocus' analysis, Hongfa Technology Co stock appears to be overvalued.
The current stock price of ¥31.70 is trading 2.9% above its estimated GF Value™ of ¥30.81.
GuruFocus considers Hongfa Technology Co to be Fairly Valued.
Key valuation signals for SHSE:600885:
ROE %: 15.06% (14% below median its 10-year median of 17.59)
GF Value™: ¥30.81 vs. price of ¥31.70 (2.9% above fair value)
Industry Position: 157% above the Industrial Products median (#453 of 3001)
No single metric tells the full story. See the SHSE:600885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongfa Technology Co Ltd is engaged in Research, manufacture and selling relays, low voltage electrical appliances, contactors, automation equipment and related electronic components and assemblies, electromechanical products, mechanical equipment.
95GF Score
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