Jiangxi Hongcheng Environment Co (SHSE:600461) Net Margin %: 18.66% (As of Mar. 2026) — 76% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

SHSE:600461 Jiangxi Hongcheng Environment Co Ltd SHSE:600461
76 GF Score
Price ¥9.27
GF Value ¥8.20
Valuation Modestly Overvalued
! 4 Warning Signs
View Full Analysis

What is Jiangxi Hongcheng Environment Co Net Margin %?

Jiangxi Hongcheng Environment Co SHSE:600461 +0.22% 76 Net Margin % is 18.66% as of Mar. 2026, which is 76% above its 10-year median of 10.62. GuruFocus rates SHSE:600461 with a GF Score™ of 76/100 and a GF Value™ of ¥8.20 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 500 Utilities - Regulated companies, Jiangxi Hongcheng Environment Co ranks better than 77.8% on this metric.

Net margin is calculated as Net Income divided by its Revenue. Jiangxi Hongcheng Environment Co's Net Income for the three months ended in Mar. 2026 was ¥316 Mil. Jiangxi Hongcheng Environment Co's Revenue for the three months ended in Mar. 2026 was ¥1,694 Mil. Therefore, Jiangxi Hongcheng Environment Co's net margin for the quarter that ended in Mar. 2026 was 18.66%.

The historical rank and industry rank for Jiangxi Hongcheng Environment Co's Net Margin % or its related term are showing as below:

SHSE:600461' s Net Margin % Range Over the Past 10 Years
Min: 7.52   Med: 10.62   Max: 16.23
Current: 16.23


SHSE:600461's Net Margin % is ranked better than
77.8% of 500 companies
in the Utilities - Regulated industry
Industry Median: 8.655 vs SHSE:600461: 16.23

Jiangxi Hongcheng Environment Co  (SHSE:600461) 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.


Jiangxi Hongcheng Environment Co Net Margin % Related Terms


Jiangxi Hongcheng Environment Co Net Margin % Historical Data

* Premium members only.

The historical data trend for Jiangxi Hongcheng Environment 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.

Jiangxi Hongcheng Environment Co Net Margin % Chart

Jiangxi Hongcheng Environment Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.18 12.36 13.45 14.46 15.94

Jiangxi Hongcheng Environment Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Net Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.26 15.69 18.64 12.64 18.66

SHSE:600461 vs AWK, WTRG, AWR: Net Margin % Comparison

For the Utilities - Regulated Water subindustry, Jiangxi Hongcheng Environment 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.


Jiangxi Hongcheng Environment Co Net Margin % vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Jiangxi Hongcheng Environment Co's Net Margin % distribution charts can be found below:

* The bar in red indicates where Jiangxi Hongcheng Environment Co's Net Margin % falls into.


SHSE:600461
76GF Score
Jiangxi Hongcheng Environment Co Ltd SHSE:600461
Net Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Jiangxi Hongcheng Environment Co Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Jiangxi Hongcheng Environment Co's Net Margin for the fiscal year that ended in Dec. 2025 is calculated as

Net Margin=Net Income (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=1193.216/7486.062
=15.94 %

Jiangxi Hongcheng Environment Co's Net Margin for the quarter that ended in Mar. 2026 is calculated as

Net Margin=Net Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=316.151/1694.22
=18.66 %

* 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.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of 18.66% mean?
Jiangxi Hongcheng Environment Co (SHSE:600461) has a Net Margin % of 18.66% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Jiangxi Hongcheng Environment Co and its competitors. This is 76% above median its historical median of 10.62. Over the past decade, Jiangxi Hongcheng Environment Co's Net Margin % has ranged from 7.52 to 16.23. According to the industry distribution chart, Jiangxi Hongcheng Environment Co ranks #111 out of 500 companies in the Utilities - Regulated industry, placing it in the top 22.2%.
Is Jiangxi Hongcheng Environment Co's Net Margin % too high?
Jiangxi Hongcheng Environment Co's current Net Margin % of 18.66% is 76% above median its 10-year median of 10.62. Over the past 10 years, this metric has ranged from a low of 7.52 to a high of 16.23. The Utilities - Regulated industry median Net Margin % is 8.66. Jiangxi Hongcheng Environment Co's value of 18.66% is 115.6% above this industry median. Based on the distribution chart, Jiangxi Hongcheng Environment Co ranks #111 out of 500 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Jiangxi Hongcheng Environment Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangxi Hongcheng Environment Co's Net Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Jiangxi Hongcheng Environment Co ranks #111 out of 500 companies for Net Margin %. This places Jiangxi Hongcheng Environment Co in the top 22% of its industry — outperforming the majority of peers. The industry median Net Margin % is 8.66. Jiangxi Hongcheng Environment Co's value of 18.66% is 115.6% above this benchmark. Historically, Jiangxi Hongcheng Environment Co's own Net Margin % has ranged from 7.52 to 16.23 over the past decade. While the company's 10-year median is 10.62 vs. the industry median of 8.66, Jiangxi Hongcheng Environment 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 an Utilities - Regulated company?
The median Net Margin % among Utilities - Regulated companies is 8.66, based on 500 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. Jiangxi Hongcheng Environment Co's current Net Margin % of 18.66% is 115.6% 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 Jiangxi Hongcheng Environment Co and its competitors. For the Utilities - Regulated industry, the median Net Margin % is 8.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangxi Hongcheng Environment Co's current Net Margin % is 18.66%, which is 76% above median its own 10-year median of 10.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangxi Hongcheng Environment Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangxi Hongcheng Environment Co (SHSE:600461) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥8.20, compared to a current price of ¥9.27 — trading 13% above its estimated fair value. The current Net Margin % is 18.66%, which is 76% above median its 10-year median of 10.62 and 115.6% above the Utilities - Regulated industry median of 8.66. Jiangxi Hongcheng Environment Co's overall GF Score™ is 76/100 with 4 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 Jiangxi Hongcheng Environment Co (SHSE:600461), the current Net Margin % is 18.66% as of Mar. 2026. 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 Jiangxi Hongcheng Environment Co (SHSE:600461) Overvalued in 2026?

Based on GuruFocus' analysis, Jiangxi Hongcheng Environment Co stock appears to be overvalued. The current stock price of ¥9.27 is trading 13% above its estimated GF Value™ of ¥8.20. GuruFocus considers Jiangxi Hongcheng Environment Co to be Modestly Overvalued.

Key valuation signals for SHSE:600461:

  • Net Margin %: 18.66% (76% above median its 10-year median of 10.62)
  • GF Value™: ¥8.20 vs. price of ¥9.27 (13% above fair value)
  • GF Score™: 76/100 with 4 warning signs
  • Industry Position: 115.6% above the Utilities - Regulated median (#111 of 500)

No single metric tells the full story. See the SHSE:600461 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Jiangxi Hongcheng Environment Co Business Description

Address No. 98 Guanyin Road, Nanchang, Jiangxi, CHN, 330001
Jiangxi Hongcheng Environment Co Ltd is a China-based engaged in the production and operation of water and wastewater treatment. The company is mainly engaged in tap water production and supply, sewage treatment, gas energy and other businesses.
76GF Score

Get the complete analysis for SHSE:600461

Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥9.27
Price
¥8.20
GF Value