Zhejiang Huasheng Technology Co (SHSE:605180) ROE %: 1.27% (As of Mar. 2026) — 94% Below Median

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.

SHSE:605180 Zhejiang Huasheng Technology Co Ltd SHSE:605180
71 GF Score
Price ¥10.31
GF Value ¥17.87
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Zhejiang Huasheng Technology Co ROE %?

Zhejiang Huasheng Technology Co SHSE:605180 -1.72% 71 ROE % is 1.27% as of Mar. 2026, which is 94% below its 10-year median of 21.41. GuruFocus rates SHSE:605180 with a GF Score™ of 71/100 and a GF Value™ of ¥17.87 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,025 Manufacturing - Apparel & Accessories companies, Zhejiang Huasheng Technology Co ranks worse than 61.37% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zhejiang Huasheng Technology Co's annualized net income for the quarter that ended in Mar. 2026 was ¥14.6 Mil. Zhejiang Huasheng Technology Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥1,146.7 Mil. Therefore, Zhejiang Huasheng Technology Co's annualized ROE % for the quarter that ended in Mar. 2026 was 1.27%.

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

SHSE:605180' s ROE % Range Over the Past 10 Years
Min: 1.89   Med: 21.41   Max: 24.4
Current: 1.89

During the past 10 years, Zhejiang Huasheng Technology Co's highest ROE % was 24.40%. The lowest was 1.89%. And the median was 21.41%.

SHSE:605180's ROE % is ranked worse than
61.37% of 1025 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.04 vs SHSE:605180: 1.89

Zhejiang Huasheng Technology Co  (SHSE:605180) 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
=14.58/1146.678
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(14.58 / 430.148)*(430.148 / 1263.0375)*(1263.0375 / 1146.678)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.39 %*0.3406*1.1015
=ROA %*Equity Multiplier
=1.15 %*1.1015
=1.27 %

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
=14.58/1146.678
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (14.58 / 14.772) * (14.772 / 63.8) * (63.8 / 430.148) * (430.148 / 1263.0375) * (1263.0375 / 1146.678)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.987 * 0.2315 * 14.83 % * 0.3406 * 1.1015
=1.27 %

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 Huasheng Technology Co ROE % Related Terms


Zhejiang Huasheng Technology Co ROE % Historical Data

* Premium members only.

The historical data trend for Zhejiang Huasheng Technology 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 Huasheng Technology Co ROE % Chart

Zhejiang Huasheng Technology 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 22.19 5.25 2.52 4.40 2.29

Zhejiang Huasheng Technology 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 2.89 5.10 0.57 0.60 1.27

Zhejiang Huasheng Technology Co ROE % Competitor Comparison

For the Textile Manufacturing subindustry, Zhejiang Huasheng 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.


Zhejiang Huasheng Technology Co ROE % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Zhejiang Huasheng Technology Co's ROE % distribution charts can be found below:

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


SHSE:605180
71GF Score
Zhejiang Huasheng Technology Co Ltd SHSE:605180
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhejiang Huasheng Technology Co ROE % Calculation

Zhejiang Huasheng Technology 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 )
=26.214/( (1140.611+1144.856)/ 2 )
=26.214/1142.7335
=2.29 %

Zhejiang Huasheng Technology 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 )
=14.58/( (1144.856+1148.5)/ 2 )
=14.58/1146.678
=1.27 %

* 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 1.27% mean?
Zhejiang Huasheng Technology Co (SHSE:605180) has a ROE % of 1.27% 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 Huasheng Technology Co and its competitors. This is 94% below median its historical median of 21.41. Over the past decade, Zhejiang Huasheng Technology Co's ROE % has ranged from 1.89 to 24.40. According to the industry distribution chart, Zhejiang Huasheng Technology Co ranks #629 out of 1025 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 61.4%.
Is Zhejiang Huasheng Technology Co's ROE % too high?
Zhejiang Huasheng Technology Co's current ROE % of 1.27% is 94% below median its 10-year median of 21.41. Over the past 10 years, this metric has ranged from a low of 1.89 to a high of 24.40. The Manufacturing - Apparel & Accessories industry median ROE % is 4.04. Zhejiang Huasheng Technology Co's value of 1.27% is 68.6% below this industry median. Based on the distribution chart, Zhejiang Huasheng Technology Co ranks #629 out of 1025 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Zhejiang Huasheng Technology Co has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Huasheng Technology Co's ROE % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Zhejiang Huasheng Technology Co ranks #629 out of 1025 companies for ROE %. This places Zhejiang Huasheng Technology Co in the lower half of its industry. The industry median ROE % is 4.04. Zhejiang Huasheng Technology Co's value of 1.27% is 68.6% below this benchmark. Historically, Zhejiang Huasheng Technology Co's own ROE % has ranged from 1.89 to 24.40 over the past decade. While the company's 10-year median is 21.41 vs. the industry median of 4.04, Zhejiang Huasheng Technology 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 Manufacturing - Apparel & Accessories company?
The median ROE % among Manufacturing - Apparel & Accessories companies is 4.04, based on 1,025 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 Huasheng Technology Co's current ROE % of 1.27% is 68.6% 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 Zhejiang Huasheng Technology Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROE % is 4.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Huasheng Technology Co's current ROE % is 1.27%, which is 94% below median its own 10-year median of 21.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Huasheng Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Huasheng Technology Co (SHSE:605180) is currently considered Possible Value Trap. The stock's GF Value™ is ¥17.87, compared to a current price of ¥10.31 — trading 42.3% below its estimated fair value. The current ROE % is 1.27%, which is 94% below median its 10-year median of 21.41 and 68.6% below the Manufacturing - Apparel & Accessories industry median of 4.04. Zhejiang Huasheng Technology Co's overall GF Score™ is 71/100 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 Huasheng Technology Co (SHSE:605180), the current ROE % is 1.27% 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 Huasheng Technology Co (SHSE:605180) Overvalued in 2026?

Based on GuruFocus' analysis, Zhejiang Huasheng Technology Co stock appears to be undervalued. The current stock price of ¥10.31 is trading 42.3% below its estimated GF Value™ of ¥17.87. GuruFocus considers Zhejiang Huasheng Technology Co to be Possible Value Trap.

Key valuation signals for SHSE:605180:

  • ROE %: 1.27% (94% below median its 10-year median of 21.41)
  • GF Value™: ¥17.87 vs. price of ¥10.31 (42.3% below fair value)
  • GF Score™: 71/100 with 7 warning signs
  • Industry Position: 68.6% below the Manufacturing - Apparel & Accessories median (#629 of 1025)

No single metric tells the full story. See the SHSE:605180 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhejiang Huasheng Technology Co Business Description

Address No. 8 Hongqi Avenue, Maqiao Street, Jiaxing City, Zhejiang Province, Haining, CHN, 314419
Zhejiang Huasheng Technology Co Ltd is engaged in the research and development, production, and sales of plastic composite materials. The company's main products are airtight materials and flexible materials. Among them, airtight materials include brushed air cushion materials and inflatable yacht materials, which are mainly used in sports and leisure fields such as paddle boards, gymnastics mats, and inflatable yachts; flexible materials include canopy materials and light box advertising materials, which are mainly used in transportation, logistics and planes, advertising, and other fields.
71GF Score

Get the complete analysis for SHSE:605180

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

¥10.31
Price
¥17.87
GF Value