Lafang China Co (SHSE:603630) ROE %: 4.57% (As of Mar. 2026) — 29% Above Median

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SHSE:603630 Lafang China Co Ltd SHSE:603630
64 GF Score
Price ¥15.20
GF Value ¥17.32
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Lafang China Co ROE %?

Lafang China Co SHSE:603630 +2.70% 64 ROE % is 4.57% as of Mar. 2026, which is 29% above its 10-year median of 3.55. GuruFocus rates SHSE:603630 with a GF Score™ of 64/100 and a GF Value™ of ¥17.32 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,923 Consumer Packaged Goods companies, Lafang China Co ranks worse than 77.17% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Lafang China Co's annualized net income for the quarter that ended in Mar. 2026 was ¥85.8 Mil. Lafang China Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥1,877.5 Mil. Therefore, Lafang China Co's annualized ROE % for the quarter that ended in Mar. 2026 was 4.57%.

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

SHSE:603630' s ROE % Range Over the Past 10 Years
Min: -1.65   Med: 3.55   Max: 19.53
Current: -1.2

During the past 13 years, Lafang China Co's highest ROE % was 19.53%. The lowest was -1.65%. And the median was 3.55%.

SHSE:603630's ROE % is ranked worse than
77.17% of 1923 companies
in the Consumer Packaged Goods industry
Industry Median: 6.81 vs SHSE:603630: -1.20

Lafang China Co  (SHSE:603630) 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
=85.844/1877.4545
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(85.844 / 893.02)*(893.02 / 2150.552)*(2150.552 / 1877.4545)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.61 %*0.4153*1.1455
=ROA %*Equity Multiplier
=3.99 %*1.1455
=4.57 %

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
=85.844/1877.4545
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (85.844 / 98.184) * (98.184 / 116.028) * (116.028 / 893.02) * (893.02 / 2150.552) * (2150.552 / 1877.4545)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8743 * 0.8462 * 12.99 % * 0.4153 * 1.1455
=4.57 %

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.


Lafang China Co ROE % Related Terms


Lafang China Co ROE % Historical Data

* Premium members only.

The historical data trend for Lafang China 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.

Lafang China Co ROE % Chart

Lafang China 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 3.74 3.11 3.36 2.13 -1.65

Lafang China 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 2.71 -1.39 1.30 -9.26 4.57

SHSE:603630 vs PG, CL, KVUE: ROE % Comparison

For the Household & Personal Products subindustry, Lafang China 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.


Lafang China Co ROE % vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Lafang China Co's ROE % distribution charts can be found below:

* The bar in red indicates where Lafang China Co's ROE % falls into.


SHSE:603630
64GF Score
Lafang China Co Ltd SHSE:603630
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Lafang China Co ROE % Calculation

Lafang China 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 )
=-31.154/( (1918.466+1866.724)/ 2 )
=-31.154/1892.595
=-1.65 %

Lafang China 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 )
=85.844/( (1866.724+1888.185)/ 2 )
=85.844/1877.4545
=4.57 %

* 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 4.57% mean?
Lafang China Co (SHSE:603630) has a ROE % of 4.57% 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 Lafang China Co and its competitors. This is 29% above median its historical median of 3.55. According to the industry distribution chart, Lafang China Co ranks #1484 out of 1923 companies in the Consumer Packaged Goods industry, placing it in the top 77.2%.
Is Lafang China Co's ROE % too high?
Lafang China Co's current ROE % of 4.57% is 29% above median its 10-year median of 3.55. The Consumer Packaged Goods industry median ROE % is 6.81. Lafang China Co's value of 4.57% is 32.9% below this industry median. Based on the distribution chart, Lafang China Co ranks #1484 out of 1923 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Lafang China Co has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lafang China Co's ROE % compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Lafang China Co ranks #1484 out of 1923 companies for ROE %. This places Lafang China Co in the lower half of its industry. The industry median ROE % is 6.81. Lafang China Co's value of 4.57% is 32.9% below this benchmark. While the company's 10-year median is 3.55 vs. the industry median of 6.81, Lafang China 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 Consumer Packaged Goods company?
The median ROE % among Consumer Packaged Goods companies is 6.81, based on 1,923 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. Lafang China Co's current ROE % of 4.57% is 32.9% 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 Lafang China Co and its competitors. For the Consumer Packaged Goods industry, the median ROE % is 6.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lafang China Co's current ROE % is 4.57%, which is 29% above median its own 10-year median of 3.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lafang China Co stock overvalued right now?
Based on GuruFocus' analysis, Lafang China Co (SHSE:603630) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥17.32, compared to a current price of ¥15.20 — trading 12.2% below its estimated fair value. The current ROE % is 4.57%, which is 29% above median its 10-year median of 3.55 and 32.9% below the Consumer Packaged Goods industry median of 6.81. Lafang China Co's overall GF Score™ is 64/100 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 Lafang China Co (SHSE:603630), the current ROE % is 4.57% 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 Lafang China Co (SHSE:603630) Overvalued in 2026?

Based on GuruFocus' analysis, Lafang China Co stock appears to be undervalued. The current stock price of ¥15.20 is trading 12.2% below its estimated GF Value™ of ¥17.32. GuruFocus considers Lafang China Co to be Modestly Undervalued.

Key valuation signals for SHSE:603630:

  • ROE %: 4.57% (29% above median its 10-year median of 3.55)
  • GF Value™: ¥17.32 vs. price of ¥15.20 (12.2% below fair value)
  • GF Score™: 64/100 with 2 warning signs
  • Industry Position: 32.9% below the Consumer Packaged Goods median (#1484 of 1923)

No single metric tells the full story. See the SHSE:603630 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lafang China Co Business Description

Address Longjiang Road, Lafang Building, Wanji Industrial Zone, Guangdong Province, Chaonan District, Shantou, CHN, 515041
Lafang China Co Ltd research and development, production and sales of daily chemical products.
64GF Score

Get the complete analysis for SHSE:603630

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

¥15.20
Price
¥17.32
GF Value