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China Leon Inspection Holding (HKSE:01586) 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.
China Leon Inspection Holding Net Margin % Related Terms
China Leon Inspection Holding 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.
HKSE:01586 vs CTAS, CPRT, GPN: Net Margin % Comparison
For the Specialty Business Services subindustry, China Leon Inspection Holding'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.
China Leon Inspection Holding Net Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, China Leon Inspection Holding's Net Margin % distribution charts can be found below:
* The bar in red indicates where China Leon Inspection Holding'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.
China Leon Inspection Holding (HKSE:01586) has a Net Margin % of -0.27% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on China Leon Inspection Holding and its competitors. Over the past decade, China Leon Inspection Holding's Net Margin % has ranged from 2.89 to 18.03. According to the industry distribution chart, China Leon Inspection Holding ranks #601 out of 1071 companies in the Business Services industry, placing it in the top 56.1%.
Is China Leon Inspection Holding's Net Margin % too high?
China Leon Inspection Holding's current Net Margin % is -0.27%. Over the past 10 years, this metric has ranged from a low of 2.89 to a high of 18.03. Based on the distribution chart, China Leon Inspection Holding ranks #601 out of 1071 companies in the Business Services industry, which is below the industry midpoint. Overall, China Leon Inspection Holding has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Leon Inspection Holding's Net Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, China Leon Inspection Holding ranks #601 out of 1071 companies for Net Margin %. This places China Leon Inspection Holding in the lower half of its industry. The industry median Net Margin % is 3.87. Historically, China Leon Inspection Holding's own Net Margin % has ranged from 2.89 to 18.03 over the past decade. 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 Business Services company?
The median Net Margin % among Business Services companies is 3.87, based on 1,071 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 China Leon Inspection Holding and its competitors. For the Business Services industry, the median Net Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Leon Inspection Holding's current Net Margin % is -0.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Leon Inspection Holding stock overvalued right now?
Based on GuruFocus' analysis, China Leon Inspection Holding (HKSE:01586) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$2.22, compared to a current price of HK$1.72 — trading 22.5% below its estimated fair value. The current Net Margin % is -0.27%. China Leon Inspection Holding's overall GF Score™ is 88/100 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 China Leon Inspection Holding (HKSE:01586), the current Net Margin % is -0.27% 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 China Leon Inspection Holding (HKSE:01586) Overvalued in 2026?
Based on GuruFocus' analysis, China Leon Inspection Holding stock appears to be undervalued.
The current stock price of HK$1.72 is trading 22.5% below its estimated GF Value™ of HK$2.22.
GuruFocus considers China Leon Inspection Holding to be Modestly Undervalued.
Key valuation signals for HKSE:01586:
Net Margin %: -0.27%
GF Value™: HK$2.22 vs. price of HK$1.72 (22.5% below fair value)
No single metric tells the full story. See the HKSE:01586 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Leon Inspection Holding Ltd is a coal testing inspection services provider. The business scope of the company includes Testing services, Surveying services, and witnessing and Ancillary services. Testing services focus on the quality assurance of coal; Surveying services include a draft survey to determine or verify the coal quantity, and it also provide witnessing services by observing testing and inspection activities conducted by the counterparties of its customers to detect dishonesty or abnormality. Geographically, it generates the majority of its revenue from Greater China.
88GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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