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SMIT HoldingsHKSE:02239 40 Net Margin % is 135.99% as of Dec. 2025, which is 1680% above its 10-year median of 7.64. GuruFocus rates HKSE:02239 with a GF Score™ of 40/100 and a GF Value™ of HK$0.83 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,022 Semiconductors companies, SMIT Holdings ranks worse than 89.04% on this metric.
Net margin is calculated as Net Income divided by its Revenue. SMIT Holdings's Net Income for the
six
months ended in Dec. 2025 was HK$80.9 Mil. SMIT Holdings's Revenue for the
six
months ended in Dec. 2025 was HK$59.5 Mil. Therefore, SMIT Holdings's net margin for the quarter that ended in Dec. 2025 was 135.99%.
The historical rank and industry rank for SMIT Holdings's Net Margin % or its related term are showing as below:
HKSE:02239'
s Net Margin % Range Over the Past 10 Years
Min: -275.18 Med: 7.64 Max: 194.44
Current: -36.8
HKSE:02239's Net Margin % is ranked worse than 89.04% of 1022
companies
in the Semiconductors industry
Industry Median: 4.375
vs HKSE:02239: -36.80
SMIT Holdings (HKSE:02239) 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.
SMIT Holdings Net Margin % Related Terms
SMIT Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for SMIT 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:02239 vs NVDA, AVGO, MU: Net Margin % Comparison
For the Semiconductors subindustry, SMIT 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.
SMIT Holdings Net Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, SMIT Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where SMIT 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.
SMIT Holdings (HKSE:02239) has a Net Margin % of 135.99% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on SMIT Holdings and its competitors. This is 1680% above median its historical median of 7.64. According to the industry distribution chart, SMIT Holdings ranks #910 out of 1022 companies in the Semiconductors industry, placing it in the top 89%.
Is SMIT Holdings' Net Margin % too high?
SMIT Holdings' current Net Margin % of 135.99% is 1680% above median its 10-year median of 7.64. The Semiconductors industry median Net Margin % is 4.38. SMIT Holdings' value of 135.99% is 3008.3% above this industry median. Based on the distribution chart, SMIT Holdings ranks #910 out of 1022 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, SMIT Holdings has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SMIT Holdings' Net Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, SMIT Holdings ranks #910 out of 1022 companies for Net Margin %. This places SMIT Holdings in the lower half of its industry. The industry median Net Margin % is 4.38. SMIT Holdings' value of 135.99% is 3008.3% above this benchmark. While the company's 10-year median is 7.64 vs. the industry median of 4.38, SMIT Holdings has consistently been above 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 Semiconductors company?
The median Net Margin % among Semiconductors companies is 4.38, based on 1,022 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. SMIT Holdings's current Net Margin % of 135.99% is 3008.3% 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 SMIT Holdings and its competitors. For the Semiconductors industry, the median Net Margin % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SMIT Holdings's current Net Margin % is 135.99%, which is 1680% above median its own 10-year median of 7.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMIT Holdings stock overvalued right now?
Based on GuruFocus' analysis, SMIT Holdings (HKSE:02239) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.83, compared to a current price of HK$1.36 — trading 63.9% above its estimated fair value. The current Net Margin % is 135.99%, which is 1680% above median its 10-year median of 7.64 and 3008.3% above the Semiconductors industry median of 4.38. SMIT Holdings' overall GF Score™ is 40/100 with 5 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 SMIT Holdings (HKSE:02239), the current Net Margin % is 135.99% 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 SMIT Holdings (HKSE:02239) Overvalued in 2026?
Based on GuruFocus' analysis, SMIT Holdings stock appears to be overvalued.
The current stock price of HK$1.36 is trading 63.9% above its estimated GF Value™ of HK$0.83.
GuruFocus considers SMIT Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:02239:
Net Margin %: 135.99% (1680% above median its 10-year median of 7.64)
GF Value™: HK$0.83 vs. price of HK$1.36 (63.9% above fair value)
Industry Position: 3008.3% above the Semiconductors median (#910 of 1022)
No single metric tells the full story. See the HKSE:02239 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SMIT Holdings Ltd is an investment holding company. The company is principally engaged in the development and sales of conditional access modules; research, development and sales of smart sensing-oriented products and solution; and provision of integrated circuit solutions. The company has four reportable segments: CAM, Intelligent Sense, Investments, and Other businesses. The company generates the majority of its revenue from the CAM segment is engaged in the development and sales of security products that enable secure distribution and delivery of digital content to television. Geographically, the company generates the majority of its revenue from Europe, followed by China (including Hong Kong) and Others.
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