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Chengdu Zhimingda Electronics Co (SHSE:688636) 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.
Chengdu Zhimingda Electronics Co Net Margin % Related Terms
Chengdu Zhimingda Electronics 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.
Chengdu Zhimingda Electronics Co Net Margin % Chart
SHSE:688636 vs DELL, ANET, SNDK: Net Margin % Comparison
For the Computer Hardware subindustry, Chengdu Zhimingda Electronics 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.
Chengdu Zhimingda Electronics Co Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Chengdu Zhimingda Electronics Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Chengdu Zhimingda Electronics 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.
Chengdu Zhimingda Electronics Co (SHSE:688636) has a Net Margin % of 19.02% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Chengdu Zhimingda Electronics Co and its competitors. This is 31% above median its historical median of 14.52. Over the past decade, Chengdu Zhimingda Electronics Co's Net Margin % has ranged from 4.44 to 26.61. According to the industry distribution chart, Chengdu Zhimingda Electronics Co ranks #292 out of 2473 companies in the Hardware industry, placing it in the top 11.8%.
Is Chengdu Zhimingda Electronics Co's Net Margin % too high?
Chengdu Zhimingda Electronics Co's current Net Margin % of 19.02% is 31% above median its 10-year median of 14.52. Over the past 10 years, this metric has ranged from a low of 4.44 to a high of 26.61. The Hardware industry median Net Margin % is 3.16. Chengdu Zhimingda Electronics Co's value of 19.02% is 501.9% above this industry median. Based on the distribution chart, Chengdu Zhimingda Electronics Co ranks #292 out of 2473 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Chengdu Zhimingda Electronics Co has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chengdu Zhimingda Electronics Co's Net Margin % compare to DELL and ANET?
According to the Hardware industry distribution chart, Chengdu Zhimingda Electronics Co ranks #292 out of 2473 companies for Net Margin %. This places Chengdu Zhimingda Electronics Co in the top 12% of its industry — outperforming the majority of peers. The industry median Net Margin % is 3.16. Chengdu Zhimingda Electronics Co's value of 19.02% is 501.9% above this benchmark. Historically, Chengdu Zhimingda Electronics Co's own Net Margin % has ranged from 4.44 to 26.61 over the past decade. While the company's 10-year median is 14.52 vs. the industry median of 3.16, Chengdu Zhimingda Electronics 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 3.16, based on 2,473 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. Chengdu Zhimingda Electronics Co's current Net Margin % of 19.02% is 501.9% 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 Chengdu Zhimingda Electronics Co and its competitors. For the Hardware industry, the median Net Margin % is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chengdu Zhimingda Electronics Co's current Net Margin % is 19.02%, which is 31% above median its own 10-year median of 14.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chengdu Zhimingda Electronics Co stock overvalued right now?
Based on GuruFocus' analysis, Chengdu Zhimingda Electronics Co (SHSE:688636) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥37.40, compared to a current price of ¥20.54 — trading 45.1% below its estimated fair value. The current Net Margin % is 19.02%, which is 31% above median its 10-year median of 14.52 and 501.9% above the Hardware industry median of 3.16. Chengdu Zhimingda Electronics Co's overall GF Score™ is 78/100 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 Chengdu Zhimingda Electronics Co (SHSE:688636), the current Net Margin % is 19.02% as of Jun. 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 Chengdu Zhimingda Electronics Co (SHSE:688636) Overvalued in 2026?
Based on GuruFocus' analysis, Chengdu Zhimingda Electronics Co stock appears to be undervalued.
The current stock price of ¥20.54 is trading 45.1% below its estimated GF Value™ of ¥37.40.
GuruFocus considers Chengdu Zhimingda Electronics Co to be Significantly Undervalued.
Key valuation signals for SHSE:688636:
Net Margin %: 19.02% (31% above median its 10-year median of 14.52)
GF Value™: ¥37.40 vs. price of ¥20.54 (45.1% below fair value)
Industry Position: 501.9% above the Hardware median (#292 of 2473)
No single metric tells the full story. See the SHSE:688636 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chengdu Zhimingda Electronics Co Ltd provides customized embedded computer modules and solutions. The company focuses on the development of embedded computers, power supplies and related system equipment, and provides customized solutions, products and services based on customer needs.
78GF 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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