Kwong Fong Industries (TPE:1416) Net Margin %: 27.88% (As of Dec. 2025) — 16% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TPE:1416 Kwong Fong Industries Corp TPE:1416
65 GF Score
Price NT$11.20
GF Value NT$15.42
Valuation Modestly Undervalued
! 6 Warning Signs
View Full Analysis

What is Kwong Fong Industries Net Margin %?

Kwong Fong Industries TPE:1416 +1.36% 65 Net Margin % is 27.88% as of Dec. 2025, which is 16% below its 10-year median of 33.35. GuruFocus rates TPE:1416 with a GF Score™ of 65/100 and a GF Value™ of NT$15.42 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,828 Software companies, Kwong Fong Industries ranks better than 97.42% on this metric.

Net margin is calculated as Net Income divided by its Revenue. Kwong Fong Industries's Net Income for the three months ended in Dec. 2025 was NT$31.0 Mil. Kwong Fong Industries's Revenue for the three months ended in Dec. 2025 was NT$111.0 Mil. Therefore, Kwong Fong Industries's net margin for the quarter that ended in Dec. 2025 was 27.88%.

The historical rank and industry rank for Kwong Fong Industries's Net Margin % or its related term are showing as below:

TPE:1416' s Net Margin % Range Over the Past 10 Years
Min: -1687.44   Med: 33.35   Max: 92.27
Current: 41.82


TPE:1416's Net Margin % is ranked better than
97.42% of 2828 companies
in the Software industry
Industry Median: 2.535 vs TPE:1416: 41.82

Kwong Fong Industries  (TPE:1416) 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.


Kwong Fong Industries Net Margin % Related Terms


Kwong Fong Industries Net Margin % Historical Data

* Premium members only.

The historical data trend for Kwong Fong Industries'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.

Kwong Fong Industries Net Margin % Chart

Kwong Fong Industries Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.55 37.88 32.14 44.06 41.82

Kwong Fong Industries Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Net Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.77 27.80 29.67 84.45 27.88

TPE:1416 vs IBM, ACN, FISV: Net Margin % Comparison

For the Information Technology Services subindustry, Kwong Fong Industries'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.


Kwong Fong Industries Net Margin % vs Software Industry

For the Software industry and Technology sector, Kwong Fong Industries's Net Margin % distribution charts can be found below:

* The bar in red indicates where Kwong Fong Industries's Net Margin % falls into.


TPE:1416
65GF Score
Kwong Fong Industries Corp TPE:1416
Net Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kwong Fong Industries Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Kwong Fong Industries's Net Margin for the fiscal year that ended in Dec. 2025 is calculated as

Net Margin=Net Income (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=150.6/360.152
=41.82 %

Kwong Fong Industries's Net Margin for the quarter that ended in Dec. 2025 is calculated as

Net Margin=Net Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=30.954/111.038
=27.88 %

* 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.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of 27.88% mean?
Kwong Fong Industries (TPE:1416) has a Net Margin % of 27.88% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Kwong Fong Industries and its competitors. This is 16% below median its historical median of 33.35. According to the industry distribution chart, Kwong Fong Industries ranks #73 out of 2828 companies in the Software industry, placing it in the top 2.6%.
Is Kwong Fong Industries' Net Margin % too high?
Kwong Fong Industries' current Net Margin % of 27.88% is 16% below median its 10-year median of 33.35. The Software industry median Net Margin % is 2.54. Kwong Fong Industries' value of 27.88% is 999.8% above this industry median. Based on the distribution chart, Kwong Fong Industries ranks #73 out of 2828 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Kwong Fong Industries has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kwong Fong Industries' Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Kwong Fong Industries ranks #73 out of 2828 companies for Net Margin %. This places Kwong Fong Industries in the top 3% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. Kwong Fong Industries' value of 27.88% is 999.8% above this benchmark. While the company's 10-year median is 33.35 vs. the industry median of 2.54, Kwong Fong Industries 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 Software company?
The median Net Margin % among Software companies is 2.54, based on 2,828 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. Kwong Fong Industries's current Net Margin % of 27.88% is 999.8% 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 Kwong Fong Industries and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kwong Fong Industries's current Net Margin % is 27.88%, which is 16% below median its own 10-year median of 33.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwong Fong Industries stock overvalued right now?
Based on GuruFocus' analysis, Kwong Fong Industries (TPE:1416) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$15.42, compared to a current price of NT$11.20 — trading 27.4% below its estimated fair value. The current Net Margin % is 27.88%, which is 16% below median its 10-year median of 33.35 and 999.8% above the Software industry median of 2.54. Kwong Fong Industries' overall GF Score™ is 65/100 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 Kwong Fong Industries (TPE:1416), the current Net Margin % is 27.88% as of Dec. 2025. 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 Kwong Fong Industries (TPE:1416) Overvalued in 2026?

Based on GuruFocus' analysis, Kwong Fong Industries stock appears to be undervalued. The current stock price of NT$11.20 is trading 27.4% below its estimated GF Value™ of NT$15.42. GuruFocus considers Kwong Fong Industries to be Modestly Undervalued.

Key valuation signals for TPE:1416:

  • Net Margin %: 27.88% (16% below median its 10-year median of 33.35)
  • GF Value™: NT$15.42 vs. price of NT$11.20 (27.4% below fair value)
  • GF Score™: 65/100 with 6 warning signs
  • Industry Position: 999.8% above the Software median (#73 of 2828)

No single metric tells the full story. See the TPE:1416 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kwong Fong Industries Business Description

Address Dunhua South Road, 28th Floor, No. 97, Section 2, Daan District, Taipei, TWN, 106
Kwong Fong Industries Corp main business items include housing and building development and rental, real estate business, mall management, information software services, and electronic information supply services. The company's segment includes the Kwong Fong Department, the Pao Fong Asset Management Department, the Kwong Fong Holdings Department, and the Digital Technology Department. The company generates the majority of its revenue from the Digital Technology Department, which is engaged in Information Software Services. The company generates all of its revenue from Taiwan. The company's revenue is derived from information services, software sales, and real estate sales.
65GF Score

Get the complete analysis for TPE:1416

Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$11.20
Price
NT$15.42
GF Value