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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hong Wei (Asia) Holdings Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 1.94%.
As of today (2026-08-08), Hong Wei (Asia) Holdings Co's WACC % is 4.44%. Hong Wei (Asia) Holdings Co's ROIC % is -7.79% (calculated using TTM income statement data).
Hong Wei (Asia) Holdings Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hong Wei (Asia) Holdings Co (HKSE:08191) 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, Hong Wei (Asia) Holdings Co's WACC % is 4.44%. Hong Wei (Asia) Holdings Co's ROIC % is -7.79% (calculated using TTM income statement data).
Hong Wei (Asia) Holdings Co 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.
Hong Wei (Asia) Holdings Co ROIC % Related Terms
Hong Wei (Asia) Holdings Co ROIC % 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 Lumber & Wood Production subindustry, Hong Wei (Asia) Holdings Co'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.
Hong Wei (Asia) Holdings Co ROIC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Hong Wei (Asia) Holdings Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Hong Wei (Asia) Holdings Co's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 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.
Hong Wei (Asia) Holdings Co (HKSE:08191) has a ROIC % of 1.94% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Hong Wei (Asia) Holdings Co and its competitors.
Is Hong Wei (Asia) Holdings Co's ROIC % too high?
Hong Wei (Asia) Holdings Co's current ROIC % is 1.94%. The Forest Products industry median ROIC % is 1.65. Hong Wei (Asia) Holdings Co's value of 1.94% is 17.6% above this industry median. Overall, Hong Wei (Asia) Holdings Co has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Wei (Asia) Holdings Co's ROIC % compare to SSD and UFPI?
Hong Wei (Asia) Holdings Co's ROIC % of 1.94% can be compared against companies in the Forest Products industry. The industry median ROIC % is 1.65. Hong Wei (Asia) Holdings Co's value of 1.94% is 17.6% above this benchmark. 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 Forest Products company?
The median ROIC % among Forest Products companies is 1.65, based on 276 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hong Wei (Asia) Holdings Co's current ROIC % of 1.94% is 17.6% above 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 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 Hong Wei (Asia) Holdings Co and its competitors. For the Forest Products industry, the median ROIC % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Wei (Asia) Holdings Co's current ROIC % is 1.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Wei (Asia) Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Hong Wei (Asia) Holdings Co (HKSE:08191) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.03, compared to a current price of HK$0.11 — trading 263.3% above its estimated fair value. The current ROIC % is 1.94% and 17.6% above the Forest Products industry median of 1.65. Hong Wei (Asia) Holdings Co's overall GF Score™ is 32/100 with 10 warning signs 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 Hong Wei (Asia) Holdings Co (HKSE:08191), the current ROIC % is 1.94% as of Dec. 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.
Is Hong Wei (Asia) Holdings Co (HKSE:08191) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Wei (Asia) Holdings Co stock appears to be overvalued.
The current stock price of HK$0.11 is trading 263.3% above its estimated GF Value™ of HK$0.03.
GuruFocus considers Hong Wei (Asia) Holdings Co to be Significantly Overvalued.
Key valuation signals for HKSE:08191:
ROIC %: 1.94%
GF Value™: HK$0.03 vs. price of HK$0.11 (263.3% above fair value)
Industry Position: 17.6% above the Forest Products median
No single metric tells the full story. See the HKSE:08191 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Wei (Asia) Holdings Co Ltd is principally engaged in investment holding, manufacturing and selling of particleboards, and forestry business in the PRC. The Group is engaged in the manufacturing and sales of particleboards and the timber logging, plantation, and sales of timber woods and agricultural products in the PRC. Its segments include the Particleboards segment, which generates maximum revenue and is engaged in the manufacturing and selling of particleboards in the PRC, and the Forestry segment, which is engaged in timber logging, plantation, and sales of timber woods and agricultural products in the PRC. The Group's operations are located in the PRC, and all of its revenue is generated from the PRC.
32GF Score
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