Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Hongcheng Environmental Technology Co (HKSE:02265) 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.
Hongcheng Environmental Technology Co Net Margin % Related Terms
Hongcheng Environmental Technology Co 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.
Hongcheng Environmental Technology Co Net Margin % Chart
HKSE:02265 vs WM, RSG, WCN: Net Margin % Comparison
For the Waste Management subindustry, Hongcheng Environmental Technology Co'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.
Hongcheng Environmental Technology Co Net Margin % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Hongcheng Environmental Technology Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Hongcheng Environmental Technology Co'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.
Hongcheng Environmental Technology Co (HKSE:02265) has a Net Margin % of 27.41% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Hongcheng Environmental Technology Co and its competitors. This is 13% below median its historical median of 31.66. Over the past decade, Hongcheng Environmental Technology Co's Net Margin % has ranged from 16.20 to 36.27. According to the industry distribution chart, Hongcheng Environmental Technology Co ranks #12 out of 239 companies in the Waste Management industry, placing it in the top 5%.
Is Hongcheng Environmental Technology Co's Net Margin % too high?
Hongcheng Environmental Technology Co's current Net Margin % of 27.41% is 13% below median its 10-year median of 31.66. Over the past 10 years, this metric has ranged from a low of 16.20 to a high of 36.27. The Waste Management industry median Net Margin % is 4.01. Hongcheng Environmental Technology Co's value of 27.41% is 583.5% above this industry median. Based on the distribution chart, Hongcheng Environmental Technology Co ranks #12 out of 239 companies in the Waste Management industry, which is in the top quartile — a strong position relative to peers. Overall, Hongcheng Environmental Technology Co has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hongcheng Environmental Technology Co's Net Margin % compare to WM and RSG?
According to the Waste Management industry distribution chart, Hongcheng Environmental Technology Co ranks #12 out of 239 companies for Net Margin %. This places Hongcheng Environmental Technology Co in the top 5% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.01. Hongcheng Environmental Technology Co's value of 27.41% is 583.5% above this benchmark. Historically, Hongcheng Environmental Technology Co's own Net Margin % has ranged from 16.20 to 36.27 over the past decade. While the company's 10-year median is 31.66 vs. the industry median of 4.01, Hongcheng Environmental Technology Co 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 Waste Management company?
The median Net Margin % among Waste Management companies is 4.01, based on 239 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. Hongcheng Environmental Technology Co's current Net Margin % of 27.41% is 583.5% 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 Hongcheng Environmental Technology Co and its competitors. For the Waste Management industry, the median Net Margin % is 4.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongcheng Environmental Technology Co's current Net Margin % is 27.41%, which is 13% below median its own 10-year median of 31.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongcheng Environmental Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co (HKSE:02265) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.61, compared to a current price of HK$1.07 — trading 33.5% below its estimated fair value. The current Net Margin % is 27.41%, which is 13% below median its 10-year median of 31.66 and 583.5% above the Waste Management industry median of 4.01. Hongcheng Environmental Technology Co's overall GF Score™ is 80/100 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 Hongcheng Environmental Technology Co (HKSE:02265), the current Net Margin % is 27.41% 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 Hongcheng Environmental Technology Co (HKSE:02265) Overvalued in 2026?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co stock appears to be undervalued.
The current stock price of HK$1.07 is trading 33.5% below its estimated GF Value™ of HK$1.61.
GuruFocus considers Hongcheng Environmental Technology Co to be Possible Value Trap.
Key valuation signals for HKSE:02265:
Net Margin %: 27.41% (13% below median its 10-year median of 31.66)
GF Value™: HK$1.61 vs. price of HK$1.07 (33.5% below fair value)
Industry Position: 583.5% above the Waste Management median (#12 of 239)
No single metric tells the full story. See the HKSE:02265 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongcheng Environmental Technology Co Ltd is an investment holding company. It is engaged in (i) the provision of gold mine hazardous waste treatment services and sales of pyrite concentrate, and (ii) the production and sales of products from reprocessing of pyrite concentrate and sulphuric acid; and (iii) the production and sales of magnesium fertiliser in the PRC. It has two reportable segments: Hazardous waste treatment and recycling, and Reprocessing of pyrite concentrate and Production of magnesium fertiliser. Key revenue is generated from the hazardous waste treatment and recycling segment.
80GF Score
Get the complete analysis for HKSE:02265
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:02265 has been successfully added to your 
