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Nanfang Communication Holdings (HKSE:01617) 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.
Nanfang Communication Holdings Net Margin % Related Terms
Nanfang Communication Holdings 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:01617 vs CSCO, MSI, HPE: Net Margin % Comparison
For the Communication Equipment subindustry, Nanfang Communication 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.
Nanfang Communication Holdings Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Nanfang Communication Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Nanfang Communication 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.
Nanfang Communication Holdings (HKSE:01617) has a Net Margin % of 1.53% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Nanfang Communication Holdings and its competitors. This is 76% below median its historical median of 6.45. According to the industry distribution chart, Nanfang Communication Holdings ranks #846 out of 2476 companies in the Hardware industry, placing it in the top 34.2%.
Is Nanfang Communication Holdings' Net Margin % too high?
Nanfang Communication Holdings' current Net Margin % of 1.53% is 76% below median its 10-year median of 6.45. The Hardware industry median Net Margin % is 3.04. Nanfang Communication Holdings' value of 1.53% is 49.7% below this industry median. Based on the distribution chart, Nanfang Communication Holdings ranks #846 out of 2476 companies in the Hardware industry, which is above the industry midpoint. Overall, Nanfang Communication Holdings has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nanfang Communication Holdings' Net Margin % compare to CSCO and MSI?
According to the Hardware industry distribution chart, Nanfang Communication Holdings ranks #846 out of 2476 companies for Net Margin %. This puts Nanfang Communication Holdings in the upper half of its industry. The industry median Net Margin % is 3.04. Nanfang Communication Holdings' value of 1.53% is 49.7% below this benchmark. While the company's 10-year median is 6.45 vs. the industry median of 3.04, Nanfang Communication Holdings 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 3.04, based on 2,476 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. Nanfang Communication Holdings's current Net Margin % of 1.53% is 49.7% 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 Nanfang Communication Holdings and its competitors. For the Hardware industry, the median Net Margin % is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nanfang Communication Holdings's current Net Margin % is 1.53%, which is 76% below median its own 10-year median of 6.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanfang Communication Holdings stock overvalued right now?
Based on GuruFocus' analysis, Nanfang Communication Holdings (HKSE:01617) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.08, compared to a current price of HK$0.26 — trading 225% above its estimated fair value. The current Net Margin % is 1.53%, which is 76% below median its 10-year median of 6.45 and 49.7% below the Hardware industry median of 3.04. Nanfang Communication Holdings' overall GF Score™ is 44/100 with 3 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 Nanfang Communication Holdings (HKSE:01617), the current Net Margin % is 1.53% 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 Nanfang Communication Holdings (HKSE:01617) Overvalued in 2026?
Based on GuruFocus' analysis, Nanfang Communication Holdings stock appears to be overvalued.
The current stock price of HK$0.26 is trading 225% above its estimated GF Value™ of HK$0.08.
GuruFocus considers Nanfang Communication Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01617:
Net Margin %: 1.53% (76% below median its 10-year median of 6.45)
GF Value™: HK$0.08 vs. price of HK$0.26 (225% above fair value)
Industry Position: 49.7% below the Hardware median (#846 of 2476)
No single metric tells the full story. See the HKSE:01617 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nanfang Communication Holdings Ltd manufactures and supplies a wide range of optical fiber cable components. The products of the company are used in different applications, such as mobile communication networks, internet networks, and fixed telephone networks in the telecommunications industry, and can be installed under different conditions. The company's products include optical fiber cables, layer-stranded optical fiber products, copper-made communication cables and others. The company's operation is principally in the People's Republic of China.
44GF Score
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