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Changmao Biochemical Engineering Co (HKSE:00954) 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.
Changmao Biochemical Engineering Co Net Margin % Related Terms
Changmao Biochemical Engineering Co Net Margin % Historical 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.
Changmao Biochemical Engineering Co Net Margin % Chart
HKSE:00954 vs LIN, SHW, ECL: Net Margin % Comparison
For the Specialty Chemicals subindustry, Changmao Biochemical Engineering Co'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.
Changmao Biochemical Engineering Co Net Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Changmao Biochemical Engineering Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Changmao Biochemical Engineering Co'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.
Changmao Biochemical Engineering Co (HKSE:00954) has a Net Margin % of -1.70% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Changmao Biochemical Engineering Co and its competitors. According to the industry distribution chart, Changmao Biochemical Engineering Co ranks #1377 out of 1590 companies in the Chemicals industry, placing it in the top 86.6%.
Is Changmao Biochemical Engineering Co's Net Margin % too high?
Changmao Biochemical Engineering Co's current Net Margin % is -1.70%. Based on the distribution chart, Changmao Biochemical Engineering Co ranks #1377 out of 1590 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Changmao Biochemical Engineering Co has a GF Score™ of 34/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Changmao Biochemical Engineering Co's Net Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Changmao Biochemical Engineering Co ranks #1377 out of 1590 companies for Net Margin %. This places Changmao Biochemical Engineering Co in the lower half of its industry. The industry median Net Margin % is 4.77. 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 Chemicals company?
The median Net Margin % among Chemicals companies is 4.77, based on 1,590 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 Changmao Biochemical Engineering Co and its competitors. For the Chemicals industry, the median Net Margin % is 4.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changmao Biochemical Engineering Co's current Net Margin % is -1.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changmao Biochemical Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Changmao Biochemical Engineering Co (HKSE:00954) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.36, compared to a current price of HK$0.22 — trading 39.4% below its estimated fair value. The current Net Margin % is -1.70%. Changmao Biochemical Engineering Co's overall GF Score™ is 34/100 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 Changmao Biochemical Engineering Co (HKSE:00954), the current Net Margin % is -1.70% as of Jun. 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 Changmao Biochemical Engineering Co (HKSE:00954) Overvalued in 2026?
Based on GuruFocus' analysis, Changmao Biochemical Engineering Co stock appears to be undervalued.
The current stock price of HK$0.22 is trading 39.4% below its estimated GF Value™ of HK$0.36.
GuruFocus considers Changmao Biochemical Engineering Co to be Possible Value Trap.
Key valuation signals for HKSE:00954:
Net Margin %: -1.70%
GF Value™: HK$0.36 vs. price of HK$0.22 (39.4% below fair value)
No single metric tells the full story. See the HKSE:00954 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Changmao Biochemical Engineering Co Ltd is an organic acid producer in the PRC. It produces organic acids products for sale to the food additive, chemical, and pharmaceutical industries. Its products are organic acids and their derivatives with four carbons in their structures including fumaric acid, maleic acid, L-malic acid, D-malic acid, DL-malic acid, L(+)-tartaric acid, D(-)-tartaric acid, DL-tartaric acid, L-aspartic acid, and aspartame. These products are used as food additives or medical intermediaries. Its products are produced along vertical production chains. Its geographic locations include Mainland China, Europe includes Great Britain, Germany, Turkey, Spain, and Italy, Asia Pacific includes Hong Kong, Indonesia, Australia, India, Thailand and Japan, America, and Others.
34GF Score
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