Hangzhou Honghua Digital Technology Stock Co (SHSE:688789) 3-Year ROIIC % : 13.59% (As of Dec. 2025) — 12% Above Median

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SHSE:688789 Hangzhou Honghua Digital Technology Stock Co Ltd SHSE:688789
85 GF Score
Price ¥45.36
GF Value ¥106.20
Valuation Possible Value Trap
! 4 Warning Signs
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What is Hangzhou Honghua Digital Technology Stock Co 3-Year ROIIC %?

Hangzhou Honghua Digital Technology Stock Co SHSE:688789 -1.88% 85 3-Year ROIIC % is 13.59 as of Dec. 2025, which is 12% above its 10-year median of 12.13. GuruFocus rates SHSE:688789 with a GF Score™ of 85/100 and a GF Value™ of ¥106.20 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,930 Industrial Products companies, Hangzhou Honghua Digital Technology Stock Co ranks better than 67.24% on this metric.

3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year. Hangzhou Honghua Digital Technology Stock Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 13.59%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Hangzhou Honghua Digital Technology Stock Co's 3-Year ROIIC % or its related term are showing as below:

SHSE:688789's 3-Year ROIIC % is ranked better than
67.24% of 2930 companies
in the Industrial Products industry
Industry Median: 3.49 vs SHSE:688789: 13.59

Hangzhou Honghua Digital Technology Stock Co  (SHSE:688789) 3-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Hangzhou Honghua Digital Technology Stock Co 3-Year ROIIC % Related Terms


Hangzhou Honghua Digital Technology Stock Co 3-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Hangzhou Honghua Digital Technology Stock Co's 3-Year ROIIC % 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.

Hangzhou Honghua Digital Technology Stock Co 3-Year ROIIC % Chart

Hangzhou Honghua Digital Technology Stock Co Annual Data
Trend Dec11 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.29 -43.48 7.29 10.67 13.59

Hangzhou Honghua Digital Technology Stock Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
3-Year ROIIC % 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 0.00 0.00 0.00 13.59 0.00

SHSE:688789 vs GEV, ETN, PH: 3-Year ROIIC % Comparison

For the Specialty Industrial Machinery subindustry, Hangzhou Honghua Digital Technology Stock Co's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.


Hangzhou Honghua Digital Technology Stock Co 3-Year ROIIC % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hangzhou Honghua Digital Technology Stock Co's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Hangzhou Honghua Digital Technology Stock Co's 3-Year ROIIC % falls into.


SHSE:688789
85GF Score
Hangzhou Honghua Digital Technology Stock Co Ltd SHSE:688789
3-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hangzhou Honghua Digital Technology Stock Co 3-Year ROIIC % Calculation

Hangzhou Honghua Digital Technology Stock Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 534.6830774 (Dec. 2025) - 231.294696 (Dec. 2022) )/( 3292.548 (Dec. 2025) - 1059.415 (Dec. 2022) )
=303.3883814/2233.133
=13.59%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Frequently Asked Questions Learn more about 3-Year ROIIC % →
What does a 3-Year ROIIC % of 13.59 mean?
Hangzhou Honghua Digital Technology Stock Co (SHSE:688789) has a 3-Year ROIIC % of 13.59 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Hangzhou Honghua Digital Technology Stock Co and its competitors. This is 12% above median its historical median of 12.13. According to the industry distribution chart, Hangzhou Honghua Digital Technology Stock Co ranks #960 out of 2930 companies in the Industrial Products industry, placing it in the top 32.8%.
Is Hangzhou Honghua Digital Technology Stock Co's 3-Year ROIIC % too high?
Hangzhou Honghua Digital Technology Stock Co's current 3-Year ROIIC % of 13.59 is 12% above median its 10-year median of 12.13. The Industrial Products industry median 3-Year ROIIC % is 3.49. Hangzhou Honghua Digital Technology Stock Co's value of 13.59 is 289.4% above this industry median. Based on the distribution chart, Hangzhou Honghua Digital Technology Stock Co ranks #960 out of 2930 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Hangzhou Honghua Digital Technology Stock Co has a GF Score™ of 85/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hangzhou Honghua Digital Technology Stock Co's 3-Year ROIIC % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Hangzhou Honghua Digital Technology Stock Co ranks #960 out of 2930 companies for 3-Year ROIIC %. This puts Hangzhou Honghua Digital Technology Stock Co in the upper half of its industry. The industry median 3-Year ROIIC % is 3.49. Hangzhou Honghua Digital Technology Stock Co's value of 13.59 is 289.4% above this benchmark. While the company's 10-year median is 12.13 vs. the industry median of 3.49, Hangzhou Honghua Digital Technology Stock Co has consistently been above 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 3-Year ROIIC % for an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.49, based on 2,930 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hangzhou Honghua Digital Technology Stock Co's current 3-Year ROIIC % of 13.59 is 289.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Hangzhou Honghua Digital Technology Stock Co and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou Honghua Digital Technology Stock Co's current 3-Year ROIIC % is 13.59, which is 12% above median its own 10-year median of 12.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou Honghua Digital Technology Stock Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou Honghua Digital Technology Stock Co (SHSE:688789) is currently considered Possible Value Trap. The stock's GF Value™ is ¥106.20, compared to a current price of ¥45.36 — trading 57.3% below its estimated fair value. The current 3-Year ROIIC % is 13.59, which is 12% above median its 10-year median of 12.13 and 289.4% above the Industrial Products industry median of 3.49. Hangzhou Honghua Digital Technology Stock Co's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Hangzhou Honghua Digital Technology Stock Co (SHSE:688789), the current 3-Year ROIIC % is 13.59 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 Hangzhou Honghua Digital Technology Stock Co (SHSE:688789) Overvalued in 2026?

Based on GuruFocus' analysis, Hangzhou Honghua Digital Technology Stock Co stock appears to be undervalued. The current stock price of ¥45.36 is trading 57.3% below its estimated GF Value™ of ¥106.20. GuruFocus considers Hangzhou Honghua Digital Technology Stock Co to be Possible Value Trap.

Key valuation signals for SHSE:688789:

  • 3-Year ROIIC %: 13.59 (12% above median its 10-year median of 12.13)
  • GF Value™: ¥106.20 vs. price of ¥45.36 (57.3% below fair value)
  • GF Score™: 85/100 with 4 warning signs
  • Industry Position: 289.4% above the Industrial Products median (#960 of 2930)

No single metric tells the full story. See the SHSE:688789 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hangzhou Honghua Digital Technology Stock Co Business Description

Address No. 3911, Binsheng Road, Binjiang District, Zhejiang Province, Hangzhou, CHN, 310052
Hangzhou Honghua Digital Technology Stock Co Ltd is committed towards promoting the industrial application and popularization of digital jet printing technology in the textile printing industry.
85GF Score

Get the complete analysis for SHSE:688789

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

¥45.36
Price
¥106.20
GF Value