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Anhui Huaheng Biotechnology Co (SHSE:688639) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Anhui Huaheng Biotechnology Co ROE % Related Terms
Anhui Huaheng Biotechnology Co ROE % Historical Data
* 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 Biotechnology subindustry, Anhui Huaheng Biotechnology 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.
Anhui Huaheng Biotechnology Co ROE % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Anhui Huaheng Biotechnology Co's ROE % distribution charts can be found below:
* The bar in red indicates where Anhui Huaheng Biotechnology 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Anhui Huaheng Biotechnology Co (SHSE:688639) has a ROE % of 8.71% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Anhui Huaheng Biotechnology Co and its competitors. This is 69% below median its historical median of 27.68. Over the past decade, Anhui Huaheng Biotechnology Co's ROE % has ranged from 4.43 to 42.51. According to the industry distribution chart, Anhui Huaheng Biotechnology Co ranks #225 out of 1249 companies in the Biotechnology industry, placing it in the top 18%.
Is Anhui Huaheng Biotechnology Co's ROE % too high?
Anhui Huaheng Biotechnology Co's current ROE % of 8.71% is 69% below median its 10-year median of 27.68. Over the past 10 years, this metric has ranged from a low of 4.43 to a high of 42.51. Based on the distribution chart, Anhui Huaheng Biotechnology Co ranks #225 out of 1249 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Anhui Huaheng Biotechnology Co has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Anhui Huaheng Biotechnology Co's ROE % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Anhui Huaheng Biotechnology Co ranks #225 out of 1249 companies for ROE %. This places Anhui Huaheng Biotechnology Co in the top 18% of its industry — outperforming the majority of peers. Historically, Anhui Huaheng Biotechnology Co's own ROE % has ranged from 4.43 to 42.51 over the past decade. 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 Biotechnology company?
A good ROE % depends on the Biotechnology industry context. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Anhui Huaheng Biotechnology Co and its competitors. Anhui Huaheng Biotechnology Co's current ROE % is 8.71%, which is 69% below median its own 10-year median of 27.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Anhui Huaheng Biotechnology Co stock overvalued right now?
Based on GuruFocus' analysis, Anhui Huaheng Biotechnology Co (SHSE:688639) is currently considered Possible Value Trap. The stock's GF Value™ is ¥42.41, compared to a current price of ¥17.53 — trading 58.7% below its estimated fair value. The current ROE % is 8.71%, which is 69% below median its 10-year median of 27.68. Anhui Huaheng Biotechnology Co's overall GF Score™ is 75/100 with 13 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 Anhui Huaheng Biotechnology Co (SHSE:688639), the current ROE % is 8.71% as of Jun. 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 Anhui Huaheng Biotechnology Co (SHSE:688639) Overvalued in 2026?
Based on GuruFocus' analysis, Anhui Huaheng Biotechnology Co stock appears to be undervalued.
The current stock price of ¥17.53 is trading 58.7% below its estimated GF Value™ of ¥42.41.
GuruFocus considers Anhui Huaheng Biotechnology Co to be Possible Value Trap.
Key valuation signals for SHSE:688639:
ROE %: 8.71% (69% below median its 10-year median of 27.68)
GF Value™: ¥42.41 vs. price of ¥17.53 (58.7% below fair value)
No single metric tells the full story. See the SHSE:688639 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Anhui Huaheng Biotechnology Co Ltd is engaged in the research and development, production and sales of bio-based products such as amino acids and other alanine products.
75GF Score
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