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Hongfa Technology CoSHSE:600885 +0.88%90 5-Year Yield-on-Cost % is 2.46 as of Aug. 25, 2026, which is 6% below its 10-year median of 2.61. GuruFocus rates SHSE:600885 with a GF Score™ of 90/100 and a GF Value™ of ¥32.80 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,898 Industrial Products companies, Hongfa Technology Co ranks better than 57.85% on this metric.
Hongfa Technology Co's yield on cost for the quarter that ended in Jun. 2026 was 2.46.
The historical rank and industry rank for Hongfa Technology Co's 5-Year Yield-on-Cost % or its related term are showing as below:
SHSE:600885'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.04 Med: 2.61 Max: 4.11
Current: 2.46
During the past 13 years, Hongfa Technology Co's highest Yield on Cost was 4.11. The lowest was 1.04. And the median was 2.61.
SHSE:600885's 5-Year Yield-on-Cost % is ranked better than 57.85% of 1898
companies
in the Industrial Products industry
Industry Median: 1.925
vs SHSE:600885: 2.46
Hongfa Technology Co (SHSE:600885) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Hongfa Technology Co 5-Year Yield-on-Cost % Related Terms
SHSE:600885 vs VRT, BE: 5-Year Yield-on-Cost % Comparison
For the Electrical Equipment & Parts subindustry, Hongfa Technology Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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.
Hongfa Technology Co 5-Year Yield-on-Cost % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hongfa Technology Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Hongfa Technology Co's 5-Year Yield-on-Cost % falls into.
Hongfa Technology Co 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Hongfa Technology Co (SHSE:600885) has a 5-Year Yield-on-Cost % of 2.46 as of Aug. 25, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Hongfa Technology Co and its competitors. This is near median its historical median of 2.61. Over the past decade, Hongfa Technology Co's 5-Year Yield-on-Cost % has ranged from 1.04 to 4.11. According to the industry distribution chart, Hongfa Technology Co ranks #800 out of 1898 companies in the Industrial Products industry, placing it in the top 42.1%.
Is Hongfa Technology Co's 5-Year Yield-on-Cost % too high?
Hongfa Technology Co's current 5-Year Yield-on-Cost % of 2.46 is near median its 10-year median of 2.61. Over the past 10 years, this metric has ranged from a low of 1.04 to a high of 4.11. The Industrial Products industry median 5-Year Yield-on-Cost % is 1.93. Hongfa Technology Co's value of 2.46 is 27.8% above this industry median. Based on the distribution chart, Hongfa Technology Co ranks #800 out of 1898 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Hongfa Technology Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hongfa Technology Co's 5-Year Yield-on-Cost % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hongfa Technology Co ranks #800 out of 1898 companies for 5-Year Yield-on-Cost %. This puts Hongfa Technology Co in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 1.93. Hongfa Technology Co's value of 2.46 is 27.8% above this benchmark. Historically, Hongfa Technology Co's own 5-Year Yield-on-Cost % has ranged from 1.04 to 4.11 over the past decade. While the company's 10-year median is 2.61 vs. the industry median of 1.93, Hongfa Technology 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 5-Year Yield-on-Cost % for an Industrial Products company?
The median 5-Year Yield-on-Cost % among Industrial Products companies is 1.93, based on 1,898 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hongfa Technology Co's current 5-Year Yield-on-Cost % of 2.46 is 27.8% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Hongfa Technology Co and its competitors. For the Industrial Products industry, the median 5-Year Yield-on-Cost % is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongfa Technology Co's current 5-Year Yield-on-Cost % is 2.46, which is near median its own 10-year median of 2.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongfa Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongfa Technology Co (SHSE:600885) is currently considered Fairly Valued. The stock's GF Value™ is ¥32.80, compared to a current price of ¥34.36 — trading 4.8% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.46, which is near median its 10-year median of 2.61 and 27.8% above the Industrial Products industry median of 1.93. Hongfa Technology Co's overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Hongfa Technology Co (SHSE:600885), the current 5-Year Yield-on-Cost % is 2.46 as of Aug. 25, 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 Hongfa Technology Co (SHSE:600885) Overvalued in 2026?
Based on GuruFocus' analysis, Hongfa Technology Co stock appears to be overvalued.
The current stock price of ¥34.36 is trading 4.8% above its estimated GF Value™ of ¥32.80.
GuruFocus considers Hongfa Technology Co to be Fairly Valued.
Key valuation signals for SHSE:600885:
5-Year Yield-on-Cost %: 2.46 (near median its 10-year median of 2.61)
GF Value™: ¥32.80 vs. price of ¥34.36 (4.8% above fair value)
Industry Position: 27.8% above the Industrial Products median (#800 of 1898)
No single metric tells the full story. See the SHSE:600885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongfa Technology Co Ltd is engaged in Research, manufacture and selling relays, low voltage electrical appliances, contactors, automation equipment and related electronic components and assemblies, electromechanical products, mechanical equipment.
90GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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