Hubei Junyao Healthy Drink Co (SHSE:605388) ROE %: 2.26% (As of Mar. 2026) — 70% Below Median

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SHSE:605388 Hubei Junyao Healthy Drink Co Ltd SHSE:605388
71 GF Score
Price ¥4.67
GF Value ¥7.90
Valuation Possible Value Trap
! 4 Warning Signs
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What is Hubei Junyao Healthy Drink Co ROE %?

Hubei Junyao Healthy Drink Co SHSE:605388 -3.51% 71 ROE % is 2.26% as of Mar. 2026, which is 70% below its 10-year median of 7.60. GuruFocus rates SHSE:605388 with a GF Score™ of 71/100 and a GF Value™ of ¥7.90 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 111 Beverages - Non-Alcoholic companies, Hubei Junyao Healthy Drink Co ranks worse than 92.79% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hubei Junyao Healthy Drink Co's annualized net income for the quarter that ended in Mar. 2026 was ¥35 Mil. Hubei Junyao Healthy Drink Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ¥1,532 Mil. Therefore, Hubei Junyao Healthy Drink Co's annualized ROE % for the quarter that ended in Mar. 2026 was 2.26%.

The historical rank and industry rank for Hubei Junyao Healthy Drink Co's ROE % or its related term are showing as below:

SHSE:605388' s ROE % Range Over the Past 10 Years
Min: -11.62   Med: 7.6   Max: 85.01
Current: -11.62

During the past 10 years, Hubei Junyao Healthy Drink Co's highest ROE % was 85.01%. The lowest was -11.62%. And the median was 7.60%.

SHSE:605388's ROE % is ranked worse than
92.79% of 111 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 11.15 vs SHSE:605388: -11.62

Hubei Junyao Healthy Drink Co  (SHSE:605388) 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
=34.66/1532.1465
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(34.66 / 1723.416)*(1723.416 / 1895.2095)*(1895.2095 / 1532.1465)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.01 %*0.9094*1.237
=ROA %*Equity Multiplier
=1.83 %*1.237
=2.26 %

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
=34.66/1532.1465
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (34.66 / 53.3) * (53.3 / 63.884) * (63.884 / 1723.416) * (1723.416 / 1895.2095) * (1895.2095 / 1532.1465)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6503 * 0.8343 * 3.71 % * 0.9094 * 1.237
=2.26 %

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.


Hubei Junyao Healthy Drink Co ROE % Related Terms


Hubei Junyao Healthy Drink Co ROE % Historical Data

* Premium members only.

The historical data trend for Hubei Junyao Healthy Drink 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.

Hubei Junyao Healthy Drink Co ROE % Chart

Hubei Junyao Healthy Drink 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 7.60 3.98 2.98 -1.57 -11.53

Hubei Junyao Healthy Drink 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 2.46 -0.79 -2.29 -46.33 2.26

SHSE:605388 vs KO, PEP, MNST: ROE % Comparison

For the Beverages - Non-Alcoholic subindustry, Hubei Junyao Healthy Drink 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.


Hubei Junyao Healthy Drink Co ROE % vs Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Hubei Junyao Healthy Drink Co's ROE % distribution charts can be found below:

* The bar in red indicates where Hubei Junyao Healthy Drink Co's ROE % falls into.


SHSE:605388
71GF Score
Hubei Junyao Healthy Drink Co Ltd SHSE:605388
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hubei Junyao Healthy Drink Co ROE % Calculation

Hubei Junyao Healthy Drink 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 )
=-190.205/( (1772.912+1527.814)/ 2 )
=-190.205/1650.363
=-11.53 %

Hubei Junyao Healthy Drink 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 )
=34.66/( (1527.814+1536.479)/ 2 )
=34.66/1532.1465
=2.26 %

* 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 2.26% mean?
Hubei Junyao Healthy Drink Co (SHSE:605388) has a ROE % of 2.26% 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 Hubei Junyao Healthy Drink Co and its competitors. This is 70% below median its historical median of 7.60. According to the industry distribution chart, Hubei Junyao Healthy Drink Co ranks #103 out of 111 companies in the Beverages - Non-Alcoholic industry, placing it in the top 92.8%.
Is Hubei Junyao Healthy Drink Co's ROE % too high?
Hubei Junyao Healthy Drink Co's current ROE % of 2.26% is 70% below median its 10-year median of 7.60. The Beverages - Non-Alcoholic industry median ROE % is 11.15. Hubei Junyao Healthy Drink Co's value of 2.26% is 79.7% below this industry median. Based on the distribution chart, Hubei Junyao Healthy Drink Co ranks #103 out of 111 companies in the Beverages - Non-Alcoholic industry, which is in the bottom quartile relative to peers. Overall, Hubei Junyao Healthy Drink 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 Hubei Junyao Healthy Drink Co's ROE % compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Hubei Junyao Healthy Drink Co ranks #103 out of 111 companies for ROE %. This places Hubei Junyao Healthy Drink Co in the lower half of its industry. The industry median ROE % is 11.15. Hubei Junyao Healthy Drink Co's value of 2.26% is 79.7% below this benchmark. While the company's 10-year median is 7.60 vs. the industry median of 11.15, Hubei Junyao Healthy Drink 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 Beverages - Non-Alcoholic company?
The median ROE % among Beverages - Non-Alcoholic companies is 11.15, based on 111 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. Hubei Junyao Healthy Drink Co's current ROE % of 2.26% is 79.7% 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 Hubei Junyao Healthy Drink Co and its competitors. For the Beverages - Non-Alcoholic industry, the median ROE % is 11.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hubei Junyao Healthy Drink Co's current ROE % is 2.26%, which is 70% below median its own 10-year median of 7.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hubei Junyao Healthy Drink Co stock overvalued right now?
Based on GuruFocus' analysis, Hubei Junyao Healthy Drink Co (SHSE:605388) is currently considered Possible Value Trap. The stock's GF Value™ is ¥7.90, compared to a current price of ¥4.67 — trading 40.9% below its estimated fair value. The current ROE % is 2.26%, which is 70% below median its 10-year median of 7.60 and 79.7% below the Beverages - Non-Alcoholic industry median of 11.15. Hubei Junyao Healthy Drink Co's overall GF Score™ is 71/100 with 4 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 Hubei Junyao Healthy Drink Co (SHSE:605388), the current ROE % is 2.26% 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 Hubei Junyao Healthy Drink Co (SHSE:605388) Overvalued in 2026?

Based on GuruFocus' analysis, Hubei Junyao Healthy Drink Co stock appears to be undervalued. The current stock price of ¥4.67 is trading 40.9% below its estimated GF Value™ of ¥7.90. GuruFocus considers Hubei Junyao Healthy Drink Co to be Possible Value Trap.

Key valuation signals for SHSE:605388:

  • ROE %: 2.26% (70% below median its 10-year median of 7.60)
  • GF Value™: ¥7.90 vs. price of ¥4.67 (40.9% below fair value)
  • GF Score™: 71/100 with 4 warning signs
  • Industry Position: 79.7% below the Beverages - Non-Alcoholic median (#103 of 111)

No single metric tells the full story. See the SHSE:605388 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hubei Junyao Healthy Drink Co Business Description

Address No. 789 Zhaojiabang Road, 31st Floor, JuneYao International Plaza, Shanghai, CHN, 443100
Hubei Junyao Healthy Drink Co Ltd is engaged in the production and sales of lactic acid bacteria series beverages at room temperature. The company's products include Wei Power Series; Milk beverage series; and Body Relaxation Series.
71GF Score

Get the complete analysis for SHSE:605388

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

¥4.67
Price
¥7.90
GF Value