Sunho Biologics (HKSE:02898) ROIC %: -65.75% (As of Jun. 2025)

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HKSE:02898 Sunho Biologics Inc HKSE:02898
11 GF Score
Price HK$6.39
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What is Sunho Biologics ROIC %?

Sunho Biologics HKSE:02898 11 ROIC % is -65.75% as of Jun. 2025. GuruFocus rates HKSE:02898 with a GF Score™ of 11/100. The stock has 1 warning sign investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sunho Biologics's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2025 was -65.75%.

As of today (2026-08-16), Sunho Biologics's WACC % is 10.30%. Sunho Biologics's ROIC % is -75.06% (calculated using TTM income statement data). Sunho Biologics earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Sunho Biologics  (HKSE:02898) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Sunho Biologics's WACC % is 10.30%. Sunho Biologics's ROIC % is -75.06% (calculated using TTM income statement data). Sunho Biologics earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Sunho Biologics ROIC % Related Terms


Sunho Biologics ROIC % Historical Data

* Premium members only.

The historical data trend for Sunho Biologics's ROIC % 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.

Sunho Biologics ROIC % Chart

Sunho Biologics Annual Data
Trend Dec22 Dec23 Dec24
ROIC %
-75.74 -29.46 -39.95

Sunho Biologics Semi-Annual Data
Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
ROIC % Get a 7-Day Free Trial -166.12 -7.50 -42.53 -89.98 -65.75

HKSE:02898 vs VRTX, REGN, ALNY: ROIC % Comparison

For the Biotechnology subindustry, Sunho Biologics's ROIC %, along with its competitors' market caps and ROIC % 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.


Sunho Biologics ROIC % vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Sunho Biologics's ROIC % distribution charts can be found below:

* The bar in red indicates where Sunho Biologics's ROIC % falls into.


HKSE:02898
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Sunho Biologics Inc HKSE:02898
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Sunho Biologics ROIC % Calculation

Sunho Biologics's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROIC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=-108.214 * ( 1 - 0% )/( (423.98 + 117.701)/ 2 )
=-108.214/270.8405
=-39.95 %

where

Invested Capital(A: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=317.688 - 69.284 - ( 229.767 - max(0, 424.018 - 248.442+229.767))
=423.98

Sunho Biologics's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2025 is calculated as:

ROIC % (Q: Jun. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Jun. 2025 ))/ count )
=-90.566 * ( 1 - 0% )/( (117.701 + 157.801)/ 2 )
=-90.566/137.751
=-65.75 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=609.798 - 4.338 - ( 447.659 - max(0, 80.968 - 533.485+447.659))
=157.801

Note: The Operating Income data used here is two times the semi-annual (Jun. 2025) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of -65.75% mean?
Sunho Biologics (HKSE:02898) has a ROIC % of -65.75% as of Jun. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Sunho Biologics and its competitors.
Is Sunho Biologics' ROIC % too high?
Sunho Biologics' current ROIC % is -65.75%. Overall, Sunho Biologics has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Sunho Biologics' ROIC % compare to VRTX and REGN?
Sunho Biologics' ROIC % of -65.75% can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Biotechnology company?
A good ROIC % depends on the Biotechnology industry context. However, ROIC % 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Sunho Biologics and its competitors. Sunho Biologics's current ROIC % is -65.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunho Biologics stock overvalued right now?
Sunho Biologics (HKSE:02898) has a current ROIC % of -65.75%. The current ROIC % is -65.75%. Sunho Biologics' overall GF Score™ is 11/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Sunho Biologics (HKSE:02898), the current ROIC % is -65.75% as of Jun. 2025. 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.

Sunho Biologics Business Description

Address No. 198 Peninsula Middle Road, Dipu Street, Room 302, Building 3, Anji County, Zhejiang Province, Huzhou, CHN
Sunho Biologics Inc is a clinical-stage biopharmaceutical company that focuses on the discovery, development and commercialization of biologics for the treatment of cancers and autoimmune diseases. It has three Core Products, IAH0968, IAP0971, and IAE0972, all of which are developed in-house. IAH0968 is an antibody-dependent cell-mediated cytotoxicity (ADCC) enhanced monoclonal antibody (mAb), and the company has initiated Phase II clinical trials for biliary tract carcinoma (BTC) and colorectal cancer (CRC). IAP0971 and IAE0972 are both immunocytokines and It has completed Phase I clinical trials for advanced solid tumors including non-small cell lung cancer (NSCLC) and CRC.
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