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Kafelaku Coffee HoldingHKSE:01869 -1.96% Net Margin % is 16.58% as of Dec. 2025. The stock has 3 warning signs investors should review. Among 363 Restaurants companies, Kafelaku Coffee Holding ranks worse than 76.03% on this metric.
Kafelaku Coffee Holding (HKSE:01869) 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.
Kafelaku Coffee Holding Net Margin % Related Terms
Kafelaku Coffee 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:01869 vs MCD, SBUX, YUM: Net Margin % Comparison
For the Restaurants subindustry, Kafelaku Coffee 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.
Kafelaku Coffee Holding Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Kafelaku Coffee Holding's Net Margin % distribution charts can be found below:
* The bar in red indicates where Kafelaku Coffee 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.
Kafelaku Coffee Holding (HKSE:01869) has a Net Margin % of 16.58% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Kafelaku Coffee Holding and its competitors. According to the industry distribution chart, Kafelaku Coffee Holding ranks #276 out of 363 companies in the Restaurants industry, placing it in the top 76%.
Is Kafelaku Coffee Holding's Net Margin % too high?
Kafelaku Coffee Holding's current Net Margin % is 16.58%. The Restaurants industry median Net Margin % is 2.18. Kafelaku Coffee Holding's value of 16.58% is 660.6% above this industry median. Based on the distribution chart, Kafelaku Coffee Holding ranks #276 out of 363 companies in the Restaurants industry, which is in the bottom quartile relative to peers.
How does Kafelaku Coffee Holding's Net Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Kafelaku Coffee Holding ranks #276 out of 363 companies for Net Margin %. This places Kafelaku Coffee Holding in the lower half of its industry. The industry median Net Margin % is 2.18. Kafelaku Coffee Holding's value of 16.58% is 660.6% above this benchmark. 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 Restaurants company?
The median Net Margin % among Restaurants companies is 2.18, based on 363 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. Kafelaku Coffee Holding's current Net Margin % of 16.58% is 660.6% above 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 Kafelaku Coffee Holding and its competitors. For the Restaurants industry, the median Net Margin % is 2.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kafelaku Coffee Holding's current Net Margin % is 16.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kafelaku Coffee Holding stock overvalued right now?
Based on GuruFocus' analysis, Kafelaku Coffee Holding (HKSE:01869) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.08, compared to a current price of HK$0.05 — trading 37.5% below its estimated fair value. The current Net Margin % is 16.58% and 660.6% above the Restaurants industry median of 2.18. 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 Kafelaku Coffee Holding (HKSE:01869), the current Net Margin % is 16.58% 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.
Kafelaku Coffee Holding Ltd is an investment holding company. Along with its subsidiaries, it is principally engaged in providing food and beverage services in Hong Kong and the PRC, including Chinese catering services and coffee services. The group operates franchised coffee shops under the brand name Kafelaku Coffee and full-service Chinese restaurants. Its reportable operating segments are Food catering and Beverage. A majority of its revenue is generated from the Food catering segment, which represents restaurant operations delivering Cantonese cuisine, Chinese banquets, and dining services. The Beverage segment represents the group's coffee operations. Geographically, it derives maximum revenue from the People's Republic of China (PRC).
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