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Huafon Chemical CoSZSE:002064 -1.24%88 Net Margin % is 17.76% as of Jun. 2026, which is 74% above its 10-year median of 10.21. GuruFocus rates SZSE:002064 with a GF Score™ of 88/100 and a GF Value™ of ¥8.01 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,583 Chemicals companies, Huafon Chemical Co ranks better than 78.71% on this metric.
Huafon Chemical Co (SZSE:002064) 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.
Huafon Chemical Co Net Margin % Related Terms
Huafon Chemical Co Net Margin % Historical Data
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The historical data trend for Huafon Chemical 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.
SZSE:002064 vs LIN, SHW, ECL: Net Margin % Comparison
For the Specialty Chemicals subindustry, Huafon Chemical 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.
Huafon Chemical Co Net Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Huafon Chemical Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Huafon Chemical 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.
Huafon Chemical Co (SZSE:002064) has a Net Margin % of 17.76% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Huafon Chemical Co and its competitors. This is 74% above median its historical median of 10.21. According to the industry distribution chart, Huafon Chemical Co ranks #337 out of 1583 companies in the Chemicals industry, placing it in the top 21.3%.
Is Huafon Chemical Co's Net Margin % too high?
Huafon Chemical Co's current Net Margin % of 17.76% is 74% above median its 10-year median of 10.21. The Chemicals industry median Net Margin % is 4.25. Huafon Chemical Co's value of 17.76% is 317.9% above this industry median. Based on the distribution chart, Huafon Chemical Co ranks #337 out of 1583 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Huafon Chemical Co has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Huafon Chemical Co's Net Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Huafon Chemical Co ranks #337 out of 1583 companies for Net Margin %. This places Huafon Chemical Co in the top 21% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.25. Huafon Chemical Co's value of 17.76% is 317.9% above this benchmark. While the company's 10-year median is 10.21 vs. the industry median of 4.25, Huafon Chemical 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 Chemicals company?
The median Net Margin % among Chemicals companies is 4.25, based on 1,583 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. Huafon Chemical Co's current Net Margin % of 17.76% is 317.9% 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 Huafon Chemical Co and its competitors. For the Chemicals industry, the median Net Margin % is 4.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huafon Chemical Co's current Net Margin % is 17.76%, which is 74% above median its own 10-year median of 10.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huafon Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Huafon Chemical Co (SZSE:002064) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥8.01, compared to a current price of ¥11.13 — trading 39% above its estimated fair value. The current Net Margin % is 17.76%, which is 74% above median its 10-year median of 10.21 and 317.9% above the Chemicals industry median of 4.25. Huafon Chemical Co's overall GF Score™ is 88/100 with 6 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 Huafon Chemical Co (SZSE:002064), the current Net Margin % is 17.76% 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 Huafon Chemical Co (SZSE:002064) Overvalued in 2026?
Based on GuruFocus' analysis, Huafon Chemical Co stock appears to be overvalued.
The current stock price of ¥11.13 is trading 39% above its estimated GF Value™ of ¥8.01.
GuruFocus considers Huafon Chemical Co to be Significantly Overvalued.
Key valuation signals for SZSE:002064:
Net Margin %: 17.76% (74% above median its 10-year median of 10.21)
GF Value™: ¥8.01 vs. price of ¥11.13 (39% above fair value)
Industry Position: 317.9% above the Chemicals median (#337 of 1583)
No single metric tells the full story. See the SZSE:002064 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huafon Chemical Co Ltd is a China-based company engaged in the production and sale of spandex fiber, polyurethane stock solution, and refined adipic acid. The main product of the company is Qianxi spandex, which can be used in underwear, casual sportswear, swimwear, socks, jeans, medical bandages, diapers, and other applications.
88GF Score
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