Net margin is calculated as Net Income divided by its Revenue. Honghua Group's Net Income for the
six
months ended in Dec. 2025 was HK$1 Mil. Honghua Group's Revenue for the
six
months ended in Dec. 2025 was HK$3,195 Mil. Therefore, Honghua Group's net margin for the quarter that ended in Dec. 2025 was 0.04%.
The historical rank and industry rank for Honghua Group's Net Margin % or its related term are showing as below:
HKSE:00196'
s Net Margin % Range Over the Past 10 Years
Min: -56.96 Med: -3.47 Max: 2.43
Current: 0.69
HKSE:00196's Net Margin % is ranked worse than 63.87% of 919
companies
in the Oil & Gas industry
Industry Median: 3.45
vs HKSE:00196: 0.69
Honghua Group (HKSE:00196) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Honghua Group Net Margin % Related Terms
Honghua Group Net Margin % Historical Data
* Premium members only.
The historical data trend for Honghua Group's Net Margin % 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.
HKSE:00196 vs SLB, BKR, HAL: Net Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Honghua Group's Net Margin %, along with its competitors' market caps and Net Margin % 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.
Honghua Group Net Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Honghua Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Honghua Group's Net Margin % falls into.
* 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.
Honghua Group (HKSE:00196) has a Net Margin % of 0.04% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Honghua Group and its competitors. According to the industry distribution chart, Honghua Group ranks #587 out of 919 companies in the Oil & Gas industry, placing it in the top 63.9%.
Is Honghua Group's Net Margin % too high?
Honghua Group's current Net Margin % is 0.04%. The Oil & Gas industry median Net Margin % is 3.45. Honghua Group's value of 0.04% is 98.8% below this industry median. Based on the distribution chart, Honghua Group ranks #587 out of 919 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Honghua Group has a GF Score™ of 36/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honghua Group's Net Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Honghua Group ranks #587 out of 919 companies for Net Margin %. This places Honghua Group in the lower half of its industry. The industry median Net Margin % is 3.45. Honghua Group's value of 0.04% is 98.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Oil & Gas company?
The median Net Margin % among Oil & Gas companies is 3.45, based on 919 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Honghua Group's current Net Margin % of 0.04% is 98.8% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Honghua Group and its competitors. For the Oil & Gas industry, the median Net Margin % is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honghua Group's current Net Margin % is 0.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honghua Group stock overvalued right now?
Based on GuruFocus' analysis, Honghua Group (HKSE:00196) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.12, compared to a current price of HK$0.15 — trading 25.8% above its estimated fair value. The current Net Margin % is 0.04% and 98.8% below the Oil & Gas industry median of 3.45. Honghua Group's overall GF Score™ is 36/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Honghua Group (HKSE:00196), the current Net Margin % is 0.04% 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 Honghua Group (HKSE:00196) Overvalued in 2026?
Based on GuruFocus' analysis, Honghua Group stock appears to be overvalued.
The current stock price of HK$0.15 is trading 25.8% above its estimated GF Value™ of HK$0.12.
GuruFocus considers Honghua Group to be Modestly Overvalued.
Key valuation signals for HKSE:00196:
Net Margin %: 0.04%
GF Value™: HK$0.12 vs. price of HK$0.15 (25.8% above fair value)
Industry Position: 98.8% below the Oil & Gas median (#587 of 919)
No single metric tells the full story. See the HKSE:00196 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honghua Group Ltd is an oil and gas exploration and development equipment manufacturing and drilling engineering services company. Its product portfolio includes land drilling rigs, electric fracturing equipment, core parts and components of drilling and completion equipment, offshore engineering equipment manufacturing, drilling engineering services, digital products for drilling and completion, as well as new energy equipment and comprehensive services for oil and gas fields, providing customers with a full products and services for energy development. Its segments include land drilling rigs, parts and components, and others; drilling engineering services; fracturing services; and offshore engineering. The land drilling rigs segment derives the majority of the revenue.
36GF Score
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