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Hengxin TechnologyHKSE:01085 -5.00%65 Net Margin % is 2.29% as of Dec. 2025, which is 53% below its 10-year median of 4.89. GuruFocus rates HKSE:01085 with a GF Score™ of 65/100 and a GF Value™ of HK$1.25 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,477 Hardware companies, Hengxin Technology ranks worse than 71.13% on this metric.
The historical rank and industry rank for Hengxin Technology's Net Margin % or its related term are showing as below:
HKSE:01085'
s Net Margin % Range Over the Past 10 Years
Min: -1.89 Med: 4.89 Max: 7.94
Current: -1.86
HKSE:01085's Net Margin % is ranked worse than 71.13% of 2477
companies
in the Hardware industry
Industry Median: 2.7
vs HKSE:01085: -1.86
Hengxin Technology (HKSE:01085) 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.
Hengxin Technology Net Margin % Related Terms
Hengxin Technology Net Margin % Historical Data
* Premium members only.
The historical data trend for Hengxin Technology'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:01085 vs CSCO, CIEN, MSI: Net Margin % Comparison
For the Communication Equipment subindustry, Hengxin Technology'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.
Hengxin Technology Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Hengxin Technology's Net Margin % distribution charts can be found below:
* The bar in red indicates where Hengxin Technology'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.
Hengxin Technology (HKSE:01085) has a Net Margin % of 2.29% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Hengxin Technology and its competitors. This is 53% below median its historical median of 4.89. According to the industry distribution chart, Hengxin Technology ranks #1762 out of 2477 companies in the Hardware industry, placing it in the top 71.1%.
Is Hengxin Technology's Net Margin % too high?
Hengxin Technology's current Net Margin % of 2.29% is 53% below median its 10-year median of 4.89. The Hardware industry median Net Margin % is 2.70. Hengxin Technology's value of 2.29% is 15.2% below this industry median. Based on the distribution chart, Hengxin Technology ranks #1762 out of 2477 companies in the Hardware industry, which is below the industry midpoint. Overall, Hengxin Technology has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hengxin Technology's Net Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Hengxin Technology ranks #1762 out of 2477 companies for Net Margin %. This places Hengxin Technology in the lower half of its industry. The industry median Net Margin % is 2.70. Hengxin Technology's value of 2.29% is 15.2% below this benchmark. While the company's 10-year median is 4.89 vs. the industry median of 2.70, Hengxin Technology has consistently been below 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 Net Margin % for a Hardware company?
The median Net Margin % among Hardware companies is 2.70, based on 2,477 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. Hengxin Technology's current Net Margin % of 2.29% is 15.2% 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 Hengxin Technology and its competitors. For the Hardware industry, the median Net Margin % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengxin Technology's current Net Margin % is 2.29%, which is 53% below median its own 10-year median of 4.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengxin Technology stock overvalued right now?
Based on GuruFocus' analysis, Hengxin Technology (HKSE:01085) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.25, compared to a current price of HK$1.71 — trading 36.8% above its estimated fair value. The current Net Margin % is 2.29%, which is 53% below median its 10-year median of 4.89 and 15.2% below the Hardware industry median of 2.70. Hengxin Technology's overall GF Score™ is 65/100 with 7 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 Hengxin Technology (HKSE:01085), the current Net Margin % is 2.29% 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 Hengxin Technology (HKSE:01085) Overvalued in 2026?
Based on GuruFocus' analysis, Hengxin Technology stock appears to be overvalued.
The current stock price of HK$1.71 is trading 36.8% above its estimated GF Value™ of HK$1.25.
GuruFocus considers Hengxin Technology to be Significantly Overvalued.
Key valuation signals for HKSE:01085:
Net Margin %: 2.29% (53% below median its 10-year median of 4.89)
GF Value™: HK$1.25 vs. price of HK$1.71 (36.8% above fair value)
Industry Position: 15.2% below the Hardware median (#1762 of 2477)
No single metric tells the full story. See the HKSE:01085 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hengxin Technology Ltd is an investment holding company. Along with its subsidiaries are engaged in the chips research, design, sales and supply chain services, semiconductor, intellectual property authorization business, and digital security products and services; the supply of electricity with a focus on the production and sales of solar power as well as the provision of development consultation and technical services of the solar thermal power generation technology; & research, design, development & manufacture of telecommunications & technological products, production of radio frequency coaxial cables for mobile communications & mobile communications systems exchange equipment. It has three segments: Integrated circuits & digital technology, New energy & services, & Telecommunications.
65GF Score
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