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Sanan Optoelectronics Co (SHSE:600703) 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.
Sanan Optoelectronics Co Net Margin % Related Terms
Sanan Optoelectronics 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.
SHSE:600703 vs NVDA, AVGO, MU: Net Margin % Comparison
For the Semiconductors subindustry, Sanan Optoelectronics 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.
Sanan Optoelectronics Co Net Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Sanan Optoelectronics Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Sanan Optoelectronics 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.
Sanan Optoelectronics Co (SHSE:600703) has a Net Margin % of 2.32% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Sanan Optoelectronics Co and its competitors. This is 79% below median its historical median of 11.23. According to the industry distribution chart, Sanan Optoelectronics Co ranks #690 out of 1022 companies in the Semiconductors industry, placing it in the top 67.5%.
Is Sanan Optoelectronics Co's Net Margin % too high?
Sanan Optoelectronics Co's current Net Margin % of 2.32% is 79% below median its 10-year median of 11.23. The Semiconductors industry median Net Margin % is 4.38. Sanan Optoelectronics Co's value of 2.32% is 47% below this industry median. Based on the distribution chart, Sanan Optoelectronics Co ranks #690 out of 1022 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Sanan Optoelectronics Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sanan Optoelectronics Co's Net Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Sanan Optoelectronics Co ranks #690 out of 1022 companies for Net Margin %. This places Sanan Optoelectronics Co in the lower half of its industry. The industry median Net Margin % is 4.38. Sanan Optoelectronics Co's value of 2.32% is 47% below this benchmark. While the company's 10-year median is 11.23 vs. the industry median of 4.38, Sanan Optoelectronics Co has consistently been below 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. Sanan Optoelectronics Co's current Net Margin % of 2.32% is 47% 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 Sanan Optoelectronics Co 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. Sanan Optoelectronics Co's current Net Margin % is 2.32%, which is 79% below median its own 10-year median of 11.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanan Optoelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Sanan Optoelectronics Co (SHSE:600703) is currently considered Fairly Valued. The stock's GF Value™ is ¥12.87, compared to a current price of ¥12.24 — trading 4.9% below its estimated fair value. The current Net Margin % is 2.32%, which is 79% below median its 10-year median of 11.23 and 47% below the Semiconductors industry median of 4.38. Sanan Optoelectronics Co's overall GF Score™ is 71/100 with 7 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 Sanan Optoelectronics Co (SHSE:600703), the current Net Margin % is 2.32% 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 Sanan Optoelectronics Co (SHSE:600703) Overvalued in 2026?
Based on GuruFocus' analysis, Sanan Optoelectronics Co stock appears to be undervalued.
The current stock price of ¥12.24 is trading 4.9% below its estimated GF Value™ of ¥12.87.
GuruFocus considers Sanan Optoelectronics Co to be Fairly Valued.
Key valuation signals for SHSE:600703:
Net Margin %: 2.32% (79% below median its 10-year median of 11.23)
GF Value™: ¥12.87 vs. price of ¥12.24 (4.9% below fair value)
Industry Position: 47% below the Semiconductors median (#690 of 1022)
No single metric tells the full story. See the SHSE:600703 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sanan Optoelectronics Co Ltd is a China-based full-color ultra-high brightness LED epitaxial and chip manufacturer. It is engaged in the development, production, and sales of full-color and high-brightness LED epitaxial wafers, chips, compound solar cells, and high-powered condenser photovoltaic products. The products offered by the company are a sapphire substrate, an integrated circuit, a solar battery, an LED chip, an optical communication chip, and others. The company is also engaged in the sale of materials and waste materials, as well as the provision of other services such as leasing and property.
71GF Score
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