Shanxi Huayang New Material Co (SHSE:600281) Operating Income: ¥-26.5 Mil (TTM As of Mar. 2026)

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SHSE:600281 Shanxi Huayang New Material Co Ltd SHSE:600281
35 GF Score
Price ¥4.41
GF Value ¥6.75
Valuation Possible Value Trap
! 4 Warning Signs
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What is Shanxi Huayang New Material Co Operating Income?

Shanxi Huayang New Material Co SHSE:600281 +0.23% 35 Operating Income is ¥-26.5 Mil as of Mar. 2026. GuruFocus rates SHSE:600281 with a GF Score™ of 35/100 and a GF Value™ of ¥6.75 (Possible Value Trap). The stock has 4 warning signs investors should review.

Shanxi Huayang New Material Co's Operating Income for the three months ended in Mar. 2026 was ¥5.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥-26.5 Mil.

Warning Sign:

Shanxi Huayang New Material Co Ltd had lost money in 92% of the time over the past 12quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shanxi Huayang New Material Co's Operating Income for the three months ended in Mar. 2026 was ¥5.9 Mil. Shanxi Huayang New Material Co's Revenue for the three months ended in Mar. 2026 was ¥124.1 Mil. Therefore, Shanxi Huayang New Material Co's Operating Margin % for the quarter that ended in Mar. 2026 was 4.79%.

Shanxi Huayang New Material Co's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Shanxi Huayang New Material Co's annualized ROC % for the quarter that ended in Mar. 2026 was 3.19%. Shanxi Huayang New Material Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.51%.


Shanxi Huayang New Material Co  (SHSE:600281) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Shanxi Huayang New Material Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=23.768 * ( 1 - 0% )/( (768.357 + 722.898)/ 2 )
=23.768/745.6275
=3.19 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=823.002 - 222.451 - ( 29.685 - max(0, 431.844 - 264.038+29.685))
=768.357

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=897.777 - 253.119 - ( 66.735 - max(0, 424.359 - 346.119+66.735))
=722.898

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Shanxi Huayang New Material Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=19.288/( ( (430.698 + max(-37.155, 0)) + (424.591 + max(-15.46, 0)) )/ 2 )
=19.288/( ( 430.698 + 424.591 )/ 2 )
=19.288/427.6445
=4.51 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(45.607 + 142.953 + 26.248) - (222.451 + 0 + 29.512)
=-37.155

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(80.625 + 156.954 + 29.017) - (253.119 + 0 + 28.937)
=-15.46

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Shanxi Huayang New Material Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=5.942/124.064
=4.79 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Shanxi Huayang New Material Co Operating Income Related Terms


Shanxi Huayang New Material Co Operating Income Historical Data

* Premium members only.

The historical data trend for Shanxi Huayang New Material Co's Operating Income 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.

Shanxi Huayang New Material Co Operating Income Chart

Shanxi Huayang New Material Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.94 -16.99 -97.39 -114.13 -54.45

Shanxi Huayang New Material Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income 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 -22.04 -10.48 -6.99 -14.95 5.94
SHSE:600281
35GF Score
Shanxi Huayang New Material Co Ltd SHSE:600281
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Shanxi Huayang New Material Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥-26.5 Mil.

* 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 Operating Income →
What does a Operating Income of ¥-26.5 Mil mean?
Shanxi Huayang New Material Co (SHSE:600281) has a Operating Income of ¥-26.5 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Shanxi Huayang New Material Co and its competitors.
Is Shanxi Huayang New Material Co's Operating Income too high?
Shanxi Huayang New Material Co's current Operating Income is ¥-26.5 Mil. Overall, Shanxi Huayang New Material Co has a GF Score™ of 35/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shanxi Huayang New Material Co's Operating Income compare to DOW?
Shanxi Huayang New Material Co's Operating Income of ¥-26.5 Mil can be compared against companies in the Chemicals industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Chemicals company?
A good Operating Income depends on the Chemicals industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Shanxi Huayang New Material Co and its competitors. Shanxi Huayang New Material Co's current Operating Income is ¥-26.5 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanxi Huayang New Material Co stock overvalued right now?
Based on GuruFocus' analysis, Shanxi Huayang New Material Co (SHSE:600281) is currently considered Possible Value Trap. The stock's GF Value™ is ¥6.75, compared to a current price of ¥4.41 — trading 34.7% below its estimated fair value. The current Operating Income is ¥-26.5 Mil. Shanxi Huayang New Material Co's overall GF Score™ is 35/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Shanxi Huayang New Material Co (SHSE:600281), the current Operating Income is ¥-26.5 Mil 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 Shanxi Huayang New Material Co (SHSE:600281) Overvalued in 2026?

Based on GuruFocus' analysis, Shanxi Huayang New Material Co stock appears to be undervalued. The current stock price of ¥4.41 is trading 34.7% below its estimated GF Value™ of ¥6.75. GuruFocus considers Shanxi Huayang New Material Co to be Possible Value Trap.

Key valuation signals for SHSE:600281:

  • Operating Income: ¥-26.5 Mil
  • GF Value™: ¥6.75 vs. price of ¥4.41 (34.7% below fair value)
  • GF Score™: 35/100 with 4 warning signs

No single metric tells the full story. See the SHSE:600281 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shanxi Huayang New Material Co Business Description

Address No. 20 Yijing Street, Taiyuan, CHN, 030021
Shanxi Huayang New Material Co Ltd Taiyuan Chemical Industry Co Ltd is engaged in the research, production, and sale of chemical products. Its main products are deep coke processing products, chemical fertilizers, coal tar processing products, and biochemical products.
35GF Score

Get the complete analysis for SHSE:600281

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

¥4.41
Price
¥6.75
GF Value