Hunan Aihua Group CoSHSE:603989 -7.71%58 Net Margin % is 6.96% as of Mar. 2026, which is 52% below its 10-year median of 14.39. GuruFocus rates SHSE:603989 with a GF Score™ of 58/100 and a GF Value™ of ¥18.40 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,480 Hardware companies, Hunan Aihua Group Co ranks better than 68.23% on this metric.
The historical rank and industry rank for Hunan Aihua Group Co's Net Margin % or its related term are showing as below:
SHSE:603989'
s Net Margin % Range Over the Past 10 Years
Min: 4.93 Med: 14.39 Max: 17.02
Current: 6.58
SHSE:603989's Net Margin % is ranked better than 68.23% of 2480
companies
in the Hardware industry
Industry Median: 2.71
vs SHSE:603989: 6.58
Hunan Aihua Group Co (SHSE:603989) 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.
Hunan Aihua Group Co Net Margin % Related Terms
Hunan Aihua Group Co Net Margin % Historical Data
* Premium members only.
The historical data trend for Hunan Aihua Group 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.
For the Electronic Components subindustry, Hunan Aihua Group 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.
Hunan Aihua Group Co Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Hunan Aihua Group Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Hunan Aihua Group 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.
Hunan Aihua Group Co (SHSE:603989) has a Net Margin % of 6.96% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Hunan Aihua Group Co and its competitors. This is 52% below median its historical median of 14.39. Over the past decade, Hunan Aihua Group Co's Net Margin % has ranged from 4.93 to 17.02. According to the industry distribution chart, Hunan Aihua Group Co ranks #788 out of 2480 companies in the Hardware industry, placing it in the top 31.8%.
Is Hunan Aihua Group Co's Net Margin % too high?
Hunan Aihua Group Co's current Net Margin % of 6.96% is 52% below median its 10-year median of 14.39. Over the past 10 years, this metric has ranged from a low of 4.93 to a high of 17.02. The Hardware industry median Net Margin % is 2.71. Hunan Aihua Group Co's value of 6.96% is 156.8% above this industry median. Based on the distribution chart, Hunan Aihua Group Co ranks #788 out of 2480 companies in the Hardware industry, which is above the industry midpoint. Overall, Hunan Aihua Group Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Aihua Group Co's Net Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Hunan Aihua Group Co ranks #788 out of 2480 companies for Net Margin %. This puts Hunan Aihua Group Co in the upper half of its industry. The industry median Net Margin % is 2.71. Hunan Aihua Group Co's value of 6.96% is 156.8% above this benchmark. Historically, Hunan Aihua Group Co's own Net Margin % has ranged from 4.93 to 17.02 over the past decade. While the company's 10-year median is 14.39 vs. the industry median of 2.71, Hunan Aihua Group 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 Hardware company?
The median Net Margin % among Hardware companies is 2.71, based on 2,480 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. Hunan Aihua Group Co's current Net Margin % of 6.96% is 156.8% 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 Hunan Aihua Group Co and its competitors. For the Hardware industry, the median Net Margin % is 2.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Aihua Group Co's current Net Margin % is 6.96%, which is 52% below median its own 10-year median of 14.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Aihua Group Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Aihua Group Co (SHSE:603989) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥18.40, compared to a current price of ¥38.30 — trading 108.2% above its estimated fair value. The current Net Margin % is 6.96%, which is 52% below median its 10-year median of 14.39 and 156.8% above the Hardware industry median of 2.71. Hunan Aihua Group Co's overall GF Score™ is 58/100 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 Hunan Aihua Group Co (SHSE:603989), the current Net Margin % is 6.96% 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 Hunan Aihua Group Co (SHSE:603989) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan Aihua Group Co stock appears to be overvalued.
The current stock price of ¥38.30 is trading 108.2% above its estimated GF Value™ of ¥18.40.
GuruFocus considers Hunan Aihua Group Co to be Significantly Overvalued.
Key valuation signals for SHSE:603989:
Net Margin %: 6.96% (52% below median its 10-year median of 14.39)
GF Value™: ¥18.40 vs. price of ¥38.30 (108.2% above fair value)
Industry Position: 156.8% above the Hardware median (#788 of 2480)
No single metric tells the full story. See the SHSE:603989 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan Aihua Group Co Ltd is engaged in the design, development, manufacturing, and sales of aluminium electrolytic capacitors and manufacturing of aluminium foil and machines.
58GF Score
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