Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Yau Lee Holdings (HKSE:00406) 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.
Yau Lee Holdings Net Margin % Related Terms
Yau Lee Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for Yau Lee Holdings'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:00406 vs PWR, FIX, EME: Net Margin % Comparison
For the Engineering & Construction subindustry, Yau Lee Holdings'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.
Yau Lee Holdings Net Margin % vs Construction Industry
For the Construction industry and Industrials sector, Yau Lee Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Yau Lee Holdings'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.
Yau Lee Holdings (HKSE:00406) has a Net Margin % of -4.64% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Yau Lee Holdings and its competitors. According to the industry distribution chart, Yau Lee Holdings ranks #1372 out of 1771 companies in the Construction industry, placing it in the top 77.5%.
Is Yau Lee Holdings' Net Margin % too high?
Yau Lee Holdings' current Net Margin % is -4.64%. Based on the distribution chart, Yau Lee Holdings ranks #1372 out of 1771 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Yau Lee Holdings has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Yau Lee Holdings' Net Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Yau Lee Holdings ranks #1372 out of 1771 companies for Net Margin %. This places Yau Lee Holdings in the lower half of its industry. The industry median Net Margin % is 3.79. 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 a Construction company?
The median Net Margin % among Construction companies is 3.79, based on 1,771 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. 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 Yau Lee Holdings and its competitors. For the Construction industry, the median Net Margin % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yau Lee Holdings's current Net Margin % is -4.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yau Lee Holdings stock overvalued right now?
Based on GuruFocus' analysis, Yau Lee Holdings (HKSE:00406) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.45, compared to a current price of HK$0.51 — trading 65.2% below its estimated fair value. The current Net Margin % is -4.64%. Yau Lee Holdings' overall GF Score™ is 42/100 with 5 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 Yau Lee Holdings (HKSE:00406), the current Net Margin % is -4.64% as of Mar. 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 Yau Lee Holdings (HKSE:00406) Overvalued in 2026?
Based on GuruFocus' analysis, Yau Lee Holdings stock appears to be undervalued.
The current stock price of HK$0.51 is trading 65.2% below its estimated GF Value™ of HK$1.45.
GuruFocus considers Yau Lee Holdings to be Possible Value Trap.
Key valuation signals for HKSE:00406:
Net Margin %: -4.64%
GF Value™: HK$1.45 vs. price of HK$0.51 (65.2% below fair value)
No single metric tells the full story. See the HKSE:00406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yau Lee Holdings Ltd is an investment holding company. The company's operating segments include Construction, Electrical and mechanical installation, Building materials supply, Property investment and development, Hotel Operations, and Others. The company generates maximum revenue from the Construction segment which includes contracting of building construction, plumbing, renovation, maintenance, and fitting-out projects. Geographically, the company derives a majority of its revenue from Hong Kong.
42GF Score
Get the complete analysis for HKSE:00406
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:00406 has been successfully added to your 
