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HG Semiconductor (HKSE:06908) 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.
HG Semiconductor Net Margin % Related Terms
HG Semiconductor Net Margin % Historical Data
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The historical data trend for HG Semiconductor'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:06908 vs NVDA, AVGO, MU: Net Margin % Comparison
For the Semiconductors subindustry, HG Semiconductor'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.
HG Semiconductor Net Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, HG Semiconductor's Net Margin % distribution charts can be found below:
* The bar in red indicates where HG Semiconductor'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.
HG Semiconductor (HKSE:06908) has a Net Margin % of -82.84% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on HG Semiconductor and its competitors. According to the industry distribution chart, HG Semiconductor ranks #980 out of 1025 companies in the Semiconductors industry, placing it in the top 95.6%.
Is HG Semiconductor's Net Margin % too high?
HG Semiconductor's current Net Margin % is -82.84%. Based on the distribution chart, HG Semiconductor ranks #980 out of 1025 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, HG Semiconductor has a GF Score™ of 32/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HG Semiconductor's Net Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, HG Semiconductor ranks #980 out of 1025 companies for Net Margin %. This places HG Semiconductor in the lower half of its industry. The industry median Net Margin % is 6.00. 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 6.00, based on 1,025 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 HG Semiconductor and its competitors. For the Semiconductors industry, the median Net Margin % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HG Semiconductor's current Net Margin % is -82.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HG Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, HG Semiconductor (HKSE:06908) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.56, compared to a current price of HK$0.35 — trading 37.5% below its estimated fair value. The current Net Margin % is -82.84%. HG Semiconductor's overall GF Score™ is 32/100 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 HG Semiconductor (HKSE:06908), the current Net Margin % is -82.84% 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 HG Semiconductor (HKSE:06908) Overvalued in 2026?
Based on GuruFocus' analysis, HG Semiconductor stock appears to be undervalued.
The current stock price of HK$0.35 is trading 37.5% below its estimated GF Value™ of HK$0.56.
GuruFocus considers HG Semiconductor to be Possible Value Trap.
Key valuation signals for HKSE:06908:
Net Margin %: -82.84%
GF Value™: HK$0.56 vs. price of HK$0.35 (37.5% below fair value)
No single metric tells the full story. See the HKSE:06908 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HG Semiconductor Ltd is an investment holding company. It is engaged in the design, development, manufacturing, subcontracting, and sales of semiconductor products, which include light-emitting diode (LED) beads, next-generation semiconductor gallium nitride (GaN) chips, GaN devices, and their related applications, as well as fast charging products in China. Its operating segments are (i) LED products and (ii) GaN and other semiconductor products. The sales of LED products generate maximum revenue for the company.
32GF Score
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