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Huitongda Network Co (HKSE:09878) 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.
Huitongda Network Co Net Margin % Related Terms
Huitongda Network Co Net Margin % Historical Data
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The historical data trend for Huitongda Network Co'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:09878 vs QH, SHOP, UBER: Net Margin % Comparison
For the Software - Application subindustry, Huitongda Network 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.
Huitongda Network Co Net Margin % vs Software Industry
For the Software industry and Technology sector, Huitongda Network Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Huitongda Network 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.
Huitongda Network Co (HKSE:09878) has a Net Margin % of 0.58% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Huitongda Network Co and its competitors. According to the industry distribution chart, Huitongda Network Co ranks #1619 out of 2832 companies in the Software industry, placing it in the top 57.2%.
Is Huitongda Network Co's Net Margin % too high?
Huitongda Network Co's current Net Margin % is 0.58%. The Software industry median Net Margin % is 2.66. Huitongda Network Co's value of 0.58% is 78.2% below this industry median. Based on the distribution chart, Huitongda Network Co ranks #1619 out of 2832 companies in the Software industry, which is below the industry midpoint. Overall, Huitongda Network Co has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Huitongda Network Co's Net Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Huitongda Network Co ranks #1619 out of 2832 companies for Net Margin %. This places Huitongda Network Co in the lower half of its industry. The industry median Net Margin % is 2.66. Huitongda Network Co's value of 0.58% is 78.2% below 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 Software company?
The median Net Margin % among Software companies is 2.66, based on 2,832 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. Huitongda Network Co's current Net Margin % of 0.58% is 78.2% below 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 Huitongda Network Co and its competitors. For the Software industry, the median Net Margin % is 2.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huitongda Network Co's current Net Margin % is 0.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huitongda Network Co stock overvalued right now?
Based on GuruFocus' analysis, Huitongda Network Co (HKSE:09878) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$17.57, compared to a current price of HK$8.42 — trading 52.1% below its estimated fair value. The current Net Margin % is 0.58% and 78.2% below the Software industry median of 2.66. Huitongda Network Co's overall GF Score™ is 76/100 with 2 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 Huitongda Network Co (HKSE:09878), the current Net Margin % is 0.58% 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.
Is Huitongda Network Co (HKSE:09878) Overvalued in 2026?
Based on GuruFocus' analysis, Huitongda Network Co stock appears to be undervalued.
The current stock price of HK$8.42 is trading 52.1% below its estimated GF Value™ of HK$17.57.
GuruFocus considers Huitongda Network Co to be Significantly Undervalued.
Key valuation signals for HKSE:09878:
Net Margin %: 0.58%
GF Value™: HK$17.57 vs. price of HK$8.42 (52.1% below fair value)
Industry Position: 78.2% below the Software median (#1619 of 2832)
No single metric tells the full story. See the HKSE:09878 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huitongda Network Co Ltd principally engaged in sale of a comprehensive suite of merchandise in the PRC and provision of intelligent business and marketing subscription services, offering merchant solutions and rendering other various services. The company has three reportable segments, The commerce business segment, which mainly represents the direct sales of merchandise; The service business segment, which mainly represents the provision of intelligent business and marketing subscription service and a collection of merchant solutions; and Others Revenues from the others are mainly derived from other services rendered by the Group. The company generates majority of revenue from Commerce business.
76GF 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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