Hongcheng Environmental Technology Co (HKSE:02265) Asset Turnover: 0.18 (As of Dec. 2025)

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HKSE:02265 Hongcheng Environmental Technology Co Ltd HKSE:02265
80 GF Score
Price HK$1.07
GF Value HK$1.61
Valuation Possible Value Trap
! 5 Warning Signs
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What is Hongcheng Environmental Technology Co Asset Turnover?

Hongcheng Environmental Technology Co HKSE:02265 -4.46% 80 Asset Turnover is 0.18 as of Dec. 2025. GuruFocus rates HKSE:02265 with a GF Score™ of 80/100 and a GF Value™ of HK$1.61 (Possible Value Trap). The stock has 5 warning signs investors should review.

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Hongcheng Environmental Technology Co's Revenue for the six months ended in Dec. 2025 was HK$209.9 Mil. Hongcheng Environmental Technology Co's Total Assets for the quarter that ended in Dec. 2025 was HK$1,158.5 Mil. Therefore, Hongcheng Environmental Technology Co's Asset Turnover for the quarter that ended in Dec. 2025 was 0.18.

Asset Turnover is linked to ROE % through Du Pont Formula. Hongcheng Environmental Technology Co's annualized ROE % for the quarter that ended in Dec. 2025 was 17.64%. It is also linked to ROA % through Du Pont Formula. Hongcheng Environmental Technology Co's annualized ROA % for the quarter that ended in Dec. 2025 was 9.94%.


Hongcheng Environmental Technology Co  (HKSE:02265) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Hongcheng Environmental Technology Co's annulized ROE % for the quarter that ended in Dec. 2025 is

ROE %**(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=115.102/652.367
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(115.102 / 419.866)*(419.866 / 1158.5295)*(1158.5295/ 652.367)
=Net Margin %*Asset Turnover*Equity Multiplier
=27.41 %*0.3624*1.7759
=ROA %*Equity Multiplier
=9.94 %*1.7759
=17.64 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Hongcheng Environmental Technology Co's annulized ROA % for the quarter that ended in Dec. 2025 is

ROA %(Q: Dec. 2025 )
=Net Income/Total Assets
=115.102/1158.5295
=(Net Income / Revenue)*(Revenue / Total Assets)
=(115.102 / 419.866)*(419.866 / 1158.5295)
=Net Margin %*Asset Turnover
=27.41 %*0.3624
=9.94 %

Note: The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue 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.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Hongcheng Environmental Technology Co Asset Turnover Related Terms


Hongcheng Environmental Technology Co Asset Turnover Historical Data

* Premium members only.

The historical data trend for Hongcheng Environmental Technology Co's Asset Turnover 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.

Hongcheng Environmental Technology Co Asset Turnover Chart

Hongcheng Environmental Technology Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Asset Turnover
Get a 7-Day Free Trial 0.49 0.31 0.14 0.27 0.31

Hongcheng Environmental Technology Co Semi-Annual Data
Dec18 Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.08 0.13 0.15 0.15 0.18

HKSE:02265 vs WM, RSG, WCN: Asset Turnover Comparison

For the Waste Management subindustry, Hongcheng Environmental Technology Co's Asset Turnover, along with its competitors' market caps and Asset Turnover 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.


Hongcheng Environmental Technology Co Asset Turnover vs Waste Management Industry

For the Waste Management industry and Industrials sector, Hongcheng Environmental Technology Co's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Hongcheng Environmental Technology Co's Asset Turnover falls into.


HKSE:02265
80GF Score
Hongcheng Environmental Technology Co Ltd HKSE:02265
Asset Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Hongcheng Environmental Technology Co Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Hongcheng Environmental Technology Co's Asset Turnover for the fiscal year that ended in Dec. 2025 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2025 )/( (Total Assets (A: Dec. 2024 )+Total Assets (A: Dec. 2025 ))/ count )
=357.53/( (983.532+1292.153)/ 2 )
=357.53/1137.8425
=0.31

Hongcheng Environmental Technology Co's Asset Turnover for the quarter that ended in Dec. 2025 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2025 )/( (Total Assets (Q: Jun. 2025 )+Total Assets (Q: Dec. 2025 ))/ count )
=209.933/( (1024.906+1292.153)/ 2 )
=209.933/1158.5295
=0.18

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Frequently Asked Questions Learn more about Asset Turnover →
What does a Asset Turnover of 0.18 mean?
Hongcheng Environmental Technology Co (HKSE:02265) has a Asset Turnover of 0.18 as of Dec. 2025. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Hongcheng Environmental Technology Co and its competitors.
Is Hongcheng Environmental Technology Co's Asset Turnover too high?
Hongcheng Environmental Technology Co's current Asset Turnover is 0.18. Overall, Hongcheng Environmental Technology Co has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hongcheng Environmental Technology Co's Asset Turnover compare to WM and RSG?
Hongcheng Environmental Technology Co's Asset Turnover of 0.18 can be compared against companies in the Waste Management industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Asset Turnover for a Waste Management company?
A good Asset Turnover depends on the Waste Management industry context. However, Asset Turnover 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 Asset Turnover mean?
A high Asset Turnover can signal that a stock is expensive relative to its fundamentals. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Hongcheng Environmental Technology Co and its competitors. Hongcheng Environmental Technology Co's current Asset Turnover is 0.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongcheng Environmental Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co (HKSE:02265) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.61, compared to a current price of HK$1.07 — trading 33.5% below its estimated fair value. The current Asset Turnover is 0.18. Hongcheng Environmental Technology Co's overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Asset Turnover calculated?
Asset Turnover is calculated from a company's financial statements. For Hongcheng Environmental Technology Co (HKSE:02265), the current Asset Turnover is 0.18 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 Hongcheng Environmental Technology Co (HKSE:02265) Overvalued in 2026?

Based on GuruFocus' analysis, Hongcheng Environmental Technology Co stock appears to be undervalued. The current stock price of HK$1.07 is trading 33.5% below its estimated GF Value™ of HK$1.61. GuruFocus considers Hongcheng Environmental Technology Co to be Possible Value Trap.

Key valuation signals for HKSE:02265:

  • Asset Turnover: 0.18
  • GF Value™: HK$1.61 vs. price of HK$1.07 (33.5% below fair value)
  • GF Score™: 80/100 with 5 warning signs

No single metric tells the full story. See the HKSE:02265 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hongcheng Environmental Technology Co Business Description

Address Yeyan Road North, Dadongzhuang Village North, Shahe Town, Shandong Province, Yantai, Laizhou, CHN
Hongcheng Environmental Technology Co Ltd is an investment holding company. It is engaged in (i) the provision of gold mine hazardous waste treatment services and sales of pyrite concentrate, and (ii) the production and sales of products from reprocessing of pyrite concentrate and sulphuric acid; and (iii) the production and sales of magnesium fertiliser in the PRC. It has two reportable segments: Hazardous waste treatment and recycling, and Reprocessing of pyrite concentrate and Production of magnesium fertiliser. Key revenue is generated from the hazardous waste treatment and recycling segment.
80GF Score

Get the complete analysis for HKSE:02265

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

HK$1.07
Price
HK$1.61
GF Value