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Guan Chao Holdings (HKSE:01872) 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.
Guan Chao Holdings Net Margin % Related Terms
Guan Chao Holdings Net Margin % Historical Data
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The historical data trend for Guan Chao Holdings'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:01872 vs CVNA, PAG, KMX: Net Margin % Comparison
For the Auto & Truck Dealerships subindustry, Guan Chao 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.
Guan Chao Holdings Net Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Guan Chao Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Guan Chao 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.
Guan Chao Holdings (HKSE:01872) has a Net Margin % of -2.54% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Guan Chao Holdings and its competitors. According to the industry distribution chart, Guan Chao Holdings ranks #1088 out of 1320 companies in the Vehicles & Parts industry, placing it in the top 82.4%.
Is Guan Chao Holdings' Net Margin % too high?
Guan Chao Holdings' current Net Margin % is -2.54%. Based on the distribution chart, Guan Chao Holdings ranks #1088 out of 1320 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Guan Chao Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guan Chao Holdings' Net Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Guan Chao Holdings ranks #1088 out of 1320 companies for Net Margin %. This places Guan Chao Holdings in the lower half of its industry. The industry median Net Margin % is 3.26. 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 Vehicles & Parts company?
The median Net Margin % among Vehicles & Parts companies is 3.26, based on 1,320 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 Guan Chao Holdings and its competitors. For the Vehicles & Parts industry, the median Net Margin % is 3.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guan Chao Holdings's current Net Margin % is -2.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guan Chao Holdings stock overvalued right now?
Based on GuruFocus' analysis, Guan Chao Holdings (HKSE:01872) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.39, compared to a current price of HK$3.90 — trading 900% above its estimated fair value. The current Net Margin % is -2.54%. Guan Chao Holdings' overall GF Score™ is 52/100 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 Guan Chao Holdings (HKSE:01872), the current Net Margin % is -2.54% 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 Guan Chao Holdings (HKSE:01872) Overvalued in 2026?
Based on GuruFocus' analysis, Guan Chao Holdings stock appears to be overvalued.
The current stock price of HK$3.90 is trading 900% above its estimated GF Value™ of HK$0.39.
GuruFocus considers Guan Chao Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01872:
Net Margin %: -2.54%
GF Value™: HK$0.39 vs. price of HK$3.90 (900% above fair value)
No single metric tells the full story. See the HKSE:01872 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guan Chao Holdings Ltd is an investment holding company. The principal activities of the Group are sales of new parallel-import motor vehicles and pre-owned motor vehicles, provision of motor vehicle financing services and motor vehicle insurance agency services, sales of motor vehicle spare parts and accessories, and provision of motor vehicle leasing services. Its segment comprises Sales of motor vehicles and provision of related services; Rental income from operating lease of motor vehicles; Sales of spare parts and accessories; Sales of hair-care products; and manufacture and sales of lithium niobate crystals and lithium niobate thin films. The company generates the majority of its revenue from the sale of motor vehicles.
52GF 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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