Shanghai Gentech Co (SHSE:688596) Operating Income: ¥305 Mil (TTM As of Mar. 2026)

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.

SHSE:688596 Shanghai Gentech Co Ltd SHSE:688596
80 GF Score
Price ¥43.50
GF Value ¥48.38
Valuation Modestly Undervalued
! 13 Warning Signs
View Full Analysis

What is Shanghai Gentech Co Operating Income?

Shanghai Gentech Co SHSE:688596 -12.49% 80 Operating Income is ¥305 Mil as of Mar. 2026. GuruFocus rates SHSE:688596 with a GF Score™ of 80/100 and a GF Value™ of ¥48.38 (Modestly Undervalued). The stock has 13 warning signs investors should review.

Shanghai Gentech Co's Operating Income for the three months ended in Mar. 2026 was ¥16 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥305 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shanghai Gentech Co's Operating Income for the three months ended in Mar. 2026 was ¥16 Mil. Shanghai Gentech Co's Revenue for the three months ended in Mar. 2026 was ¥970 Mil. Therefore, Shanghai Gentech Co's Operating Margin % for the quarter that ended in Mar. 2026 was 1.68%.

Warning Sign:

Shanghai Gentech Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.5%.

Shanghai Gentech Co's 5-Year average Growth Rate for Operating Margin % was -4.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Shanghai Gentech Co's annualized ROC % for the quarter that ended in Mar. 2026 was 0.78%. Shanghai Gentech Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 1.31%.


Shanghai Gentech Co  (SHSE:688596) Operating Income Explanation

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

Shanghai Gentech 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 )
=65.028 * ( 1 - 0% )/( (8013.335 + 8666.346)/ 2 )
=65.028/8339.8405
=0.78 %

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))
=12947.142 - 3509.012 - ( 1424.795 - max(0, 5754.692 - 7503.238+1424.795))
=8013.335

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))
=12799.789 - 3149.784 - ( 983.659 - max(0, 5300.716 - 7313.745+983.659))
=8666.346

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

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

Shanghai Gentech 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 )
=55.524/( ( (3250.93 + max(754.808, 0)) + (3246.332 + max(1253.781, 0)) )/ 2 )
=55.524/( ( 4005.738 + 4500.113 )/ 2 )
=55.524/4252.9255
=1.31 %

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)
=(2371.938 + 2950.672 + 268.36) - (3509.012 + 0 + 1327.15)
=754.808

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2256.799 + 3179.523 + 308.472) - (3149.784 + 0 + 1341.229)
=1253.781

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 %:

Shanghai Gentech 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 )
=16.257/970.099
=1.68 %

* 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.


Shanghai Gentech Co Operating Income Related Terms


Shanghai Gentech Co Operating Income Historical Data

* Premium members only.

The historical data trend for Shanghai Gentech 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.

Shanghai Gentech Co Operating Income Chart

Shanghai Gentech 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 185.52 288.09 465.20 740.08 323.77

Shanghai Gentech 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 35.49 107.62 29.17 151.49 16.26
SHSE:688596
80GF Score
Shanghai Gentech Co Ltd SHSE:688596
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shanghai Gentech 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 ¥305 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 ¥305 Mil mean?
Shanghai Gentech Co (SHSE:688596) has a Operating Income of ¥305 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Shanghai Gentech Co and its competitors.
Is Shanghai Gentech Co's Operating Income too high?
Shanghai Gentech Co's current Operating Income is ¥305 Mil. Overall, Shanghai Gentech Co has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Gentech Co's Operating Income compare to GEV and ETN?
Shanghai Gentech Co's Operating Income of ¥305 Mil can be compared against companies in the Industrial Products 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 an Industrial Products company?
A good Operating Income depends on the Industrial Products 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 Shanghai Gentech Co and its competitors. Shanghai Gentech Co's current Operating Income is ¥305 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Gentech Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Gentech Co (SHSE:688596) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥48.38, compared to a current price of ¥43.50 — trading 10.1% below its estimated fair value. The current Operating Income is ¥305 Mil. Shanghai Gentech Co's overall GF Score™ is 80/100 with 13 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 Shanghai Gentech Co (SHSE:688596), the current Operating Income is ¥305 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 Shanghai Gentech Co (SHSE:688596) Overvalued in 2026?

Based on GuruFocus' analysis, Shanghai Gentech Co stock appears to be undervalued. The current stock price of ¥43.50 is trading 10.1% below its estimated GF Value™ of ¥48.38. GuruFocus considers Shanghai Gentech Co to be Modestly Undervalued.

Key valuation signals for SHSE:688596:

  • Operating Income: ¥305 Mil
  • GF Value™: ¥48.38 vs. price of ¥43.50 (10.1% below fair value)
  • GF Score™: 80/100 with 13 warning signs

No single metric tells the full story. See the SHSE:688596 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shanghai Gentech Co Business Description

Address No. 55 Chunyong Road, Building 2, Minhang District, Shanghai, CHN, 201108
Shanghai Gentech Co Ltd is engaged in designing, production, installation and supporting services of gas chemical supply system. The company is also engaged in designing and installation of water treatment systems, recycling system, clean fluid system, and other systems.
80GF Score

Get the complete analysis for SHSE:688596

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

¥43.50
Price
¥48.38
GF Value