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Shenzhen Leading Semiconductor Industry Co (SHSE:603991) 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.
Shenzhen Leading Semiconductor Industry Co Net Margin % Related Terms
Shenzhen Leading Semiconductor Industry 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.
Shenzhen Leading Semiconductor Industry Co Net Margin % Chart
Shenzhen Leading Semiconductor Industry Co Annual Data
SHSE:603991 vs AMAT, LRCX, KLAC: Net Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Shenzhen Leading Semiconductor Industry 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.
Shenzhen Leading Semiconductor Industry Co Net Margin % vs Semiconductors Industry
* 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.
Shenzhen Leading Semiconductor Industry Co (SHSE:603991) has a Net Margin % of 5.69% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Shenzhen Leading Semiconductor Industry Co and its competitors. According to the industry distribution chart, Shenzhen Leading Semiconductor Industry Co ranks #625 out of 1026 companies in the Semiconductors industry, placing it in the top 60.9%.
Is Shenzhen Leading Semiconductor Industry Co's Net Margin % too high?
Shenzhen Leading Semiconductor Industry Co's current Net Margin % is 5.69%. The Semiconductors industry median Net Margin % is 5.46. Shenzhen Leading Semiconductor Industry Co's value of 5.69% is 4.2% above this industry median. Based on the distribution chart, Shenzhen Leading Semiconductor Industry Co ranks #625 out of 1026 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Shenzhen Leading Semiconductor Industry Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Leading Semiconductor Industry Co's Net Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Shenzhen Leading Semiconductor Industry Co ranks #625 out of 1026 companies for Net Margin %. This places Shenzhen Leading Semiconductor Industry Co in the lower half of its industry. The industry median Net Margin % is 5.46. Shenzhen Leading Semiconductor Industry Co's value of 5.69% is 4.2% above 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 Semiconductors company?
The median Net Margin % among Semiconductors companies is 5.46, based on 1,026 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. Shenzhen Leading Semiconductor Industry Co's current Net Margin % of 5.69% is 4.2% 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 Shenzhen Leading Semiconductor Industry Co and its competitors. For the Semiconductors industry, the median Net Margin % is 5.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Leading Semiconductor Industry Co's current Net Margin % is 5.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Leading Semiconductor Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Leading Semiconductor Industry Co (SHSE:603991) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥168.50, compared to a current price of ¥134.54 — trading 20.2% below its estimated fair value. The current Net Margin % is 5.69% and 4.2% above the Semiconductors industry median of 5.46. Shenzhen Leading Semiconductor Industry Co's overall GF Score™ is 70/100 with 5 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 Shenzhen Leading Semiconductor Industry Co (SHSE:603991), the current Net Margin % is 5.69% 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 Shenzhen Leading Semiconductor Industry Co (SHSE:603991) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Leading Semiconductor Industry Co stock appears to be undervalued.
The current stock price of ¥134.54 is trading 20.2% below its estimated GF Value™ of ¥168.50.
GuruFocus considers Shenzhen Leading Semiconductor Industry Co to be Modestly Undervalued.
Key valuation signals for SHSE:603991:
Net Margin %: 5.69%
GF Value™: ¥168.50 vs. price of ¥134.54 (20.2% below fair value)
Industry Position: 4.2% above the Semiconductors median (#625 of 1026)
No single metric tells the full story. See the SHSE:603991 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Leading Semiconductor Industry Co Ltd is engaged in the sales of self-produced products, the import and export of goods and technologies, and semiconductor device manufacturing. The company operates in the manufacturing of specialized semiconductor device equipment and electronic equipment, the development of basic and application artificial intelligence software, and the research, development, and production of electronic specialty materials. It also provides technical services, technology development, and information system operation and maintenance services.
70GF Score
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