Zhejiang Huakang Pharmaceutical Co (SHSE:605077) ROE %: 2.73% (As of Mar. 2026) — 84% Below Median

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SHSE:605077 Zhejiang Huakang Pharmaceutical Co Ltd SHSE:605077
73 GF Score
Price ¥10.90
GF Value ¥39.70
Valuation Possible Value Trap
! 7 Warning Signs
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What is Zhejiang Huakang Pharmaceutical Co ROE %?

Zhejiang Huakang Pharmaceutical Co SHSE:605077 -0.64% 73 ROE % is 2.73% as of Mar. 2026, which is 84% below its 10-year median of 17.58. GuruFocus rates SHSE:605077 with a GF Score™ of 73/100 and a GF Value™ of ¥39.70 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,582 Chemicals companies, Zhejiang Huakang Pharmaceutical Co ranks worse than 55.94% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zhejiang Huakang Pharmaceutical Co's annualized net income for the quarter that ended in Mar. 2026 was ¥89 Mil. Zhejiang Huakang Pharmaceutical Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥3,252 Mil. Therefore, Zhejiang Huakang Pharmaceutical Co's annualized ROE % for the quarter that ended in Mar. 2026 was 2.73%.

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

SHSE:605077' s ROE % Range Over the Past 10 Years
Min: 4.35   Med: 17.58   Max: 63.42
Current: 4.35

During the past 10 years, Zhejiang Huakang Pharmaceutical Co's highest ROE % was 63.42%. The lowest was 4.35%. And the median was 17.58%.

SHSE:605077's ROE % is ranked worse than
55.94% of 1582 companies
in the Chemicals industry
Industry Median: 5.28 vs SHSE:605077: 4.35

Zhejiang Huakang Pharmaceutical Co  (SHSE:605077) 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
=88.684/3252.4365
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(88.684 / 4747.276)*(4747.276 / 8060.886)*(8060.886 / 3252.4365)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.87 %*0.5889*2.4784
=ROA %*Equity Multiplier
=1.1 %*2.4784
=2.73 %

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
=88.684/3252.4365
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (88.684 / 106.456) * (106.456 / 254.032) * (254.032 / 4747.276) * (4747.276 / 8060.886) * (8060.886 / 3252.4365)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8331 * 0.4191 * 5.35 % * 0.5889 * 2.4784
=2.73 %

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.


Zhejiang Huakang Pharmaceutical Co ROE % Related Terms


Zhejiang Huakang Pharmaceutical Co ROE % Historical Data

* Premium members only.

The historical data trend for Zhejiang Huakang Pharmaceutical 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.

Zhejiang Huakang Pharmaceutical Co ROE % Chart

Zhejiang Huakang Pharmaceutical 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 14.03 12.54 12.93 8.48 6.18

Zhejiang Huakang Pharmaceutical 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 9.87 6.43 4.31 3.96 2.73

SHSE:605077 vs DOW: ROE % Comparison

For the Chemicals subindustry, Zhejiang Huakang Pharmaceutical 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 Huakang Pharmaceutical Co ROE % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Zhejiang Huakang Pharmaceutical Co's ROE % distribution charts can be found below:

* The bar in red indicates where Zhejiang Huakang Pharmaceutical Co's ROE % falls into.


SHSE:605077
73GF Score
Zhejiang Huakang Pharmaceutical Co Ltd SHSE:605077
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Zhejiang Huakang Pharmaceutical Co ROE % Calculation

Zhejiang Huakang Pharmaceutical 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 )
=200.299/( (3243.431+3240.467)/ 2 )
=200.299/3241.949
=6.18 %

Zhejiang Huakang Pharmaceutical 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 )
=88.684/( (3240.467+3264.406)/ 2 )
=88.684/3252.4365
=2.73 %

* 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 2.73% mean?
Zhejiang Huakang Pharmaceutical Co (SHSE:605077) has a ROE % of 2.73% 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 Zhejiang Huakang Pharmaceutical Co and its competitors. This is 84% below median its historical median of 17.58. Over the past decade, Zhejiang Huakang Pharmaceutical Co's ROE % has ranged from 4.35 to 63.42. According to the industry distribution chart, Zhejiang Huakang Pharmaceutical Co ranks #885 out of 1582 companies in the Chemicals industry, placing it in the top 55.9%.
Is Zhejiang Huakang Pharmaceutical Co's ROE % too high?
Zhejiang Huakang Pharmaceutical Co's current ROE % of 2.73% is 84% below median its 10-year median of 17.58. Over the past 10 years, this metric has ranged from a low of 4.35 to a high of 63.42. The Chemicals industry median ROE % is 5.28. Zhejiang Huakang Pharmaceutical Co's value of 2.73% is 48.3% below this industry median. Based on the distribution chart, Zhejiang Huakang Pharmaceutical Co ranks #885 out of 1582 companies in the Chemicals industry, which is below the industry midpoint. Overall, Zhejiang Huakang Pharmaceutical Co has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Huakang Pharmaceutical Co's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Zhejiang Huakang Pharmaceutical Co ranks #885 out of 1582 companies for ROE %. This places Zhejiang Huakang Pharmaceutical Co in the lower half of its industry. The industry median ROE % is 5.28. Zhejiang Huakang Pharmaceutical Co's value of 2.73% is 48.3% below this benchmark. Historically, Zhejiang Huakang Pharmaceutical Co's own ROE % has ranged from 4.35 to 63.42 over the past decade. While the company's 10-year median is 17.58 vs. the industry median of 5.28, Zhejiang Huakang Pharmaceutical 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 5.28, 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 Huakang Pharmaceutical Co's current ROE % of 2.73% is 48.3% 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 Huakang Pharmaceutical Co and its competitors. For the Chemicals industry, the median ROE % is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Huakang Pharmaceutical Co's current ROE % is 2.73%, which is 84% below median its own 10-year median of 17.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Huakang Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Huakang Pharmaceutical Co (SHSE:605077) is currently considered Possible Value Trap. The stock's GF Value™ is ¥39.70, compared to a current price of ¥10.90 — trading 72.5% below its estimated fair value. The current ROE % is 2.73%, which is 84% below median its 10-year median of 17.58 and 48.3% below the Chemicals industry median of 5.28. Zhejiang Huakang Pharmaceutical Co's overall GF Score™ is 73/100 with 7 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 Huakang Pharmaceutical Co (SHSE:605077), the current ROE % is 2.73% 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 Zhejiang Huakang Pharmaceutical Co (SHSE:605077) Overvalued in 2026?

Based on GuruFocus' analysis, Zhejiang Huakang Pharmaceutical Co stock appears to be undervalued. The current stock price of ¥10.90 is trading 72.5% below its estimated GF Value™ of ¥39.70. GuruFocus considers Zhejiang Huakang Pharmaceutical Co to be Possible Value Trap.

Key valuation signals for SHSE:605077:

  • ROE %: 2.73% (84% below median its 10-year median of 17.58)
  • GF Value™: ¥39.70 vs. price of ¥10.90 (72.5% below fair value)
  • GF Score™: 73/100 with 7 warning signs
  • Industry Position: 48.3% below the Chemicals median (#885 of 1582)

No single metric tells the full story. See the SHSE:605077 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhejiang Huakang Pharmaceutical Co Business Description

Address No. 18, Huagong Road, Huabu Town, Zhejiang Province, Kaihua County, Quzhou, CHN, 324302
Zhejiang Huakang Pharmaceutical Co Ltd is engaged in the research and development, production and sales of various functional sugar alcohols and starch sugar products such as xylitol, sorbitol, maltitol, fructose syrup and others.
73GF Score

Get the complete analysis for SHSE:605077

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

¥10.90
Price
¥39.70
GF Value