Strong H Machinery Technology Co (TPE:4560) Operating Income: NT$273 Mil (TTM As of Mar. 2026)

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TPE:4560 Strong H Machinery Technology Co TPE:4560
90 GF Score
Price NT$31.50
GF Value NT$40.60
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Strong H Machinery Technology Co Operating Income?

Strong H Machinery Technology Co TPE:4560 +0.16% 90 Operating Income is NT$273 Mil as of Mar. 2026. GuruFocus rates TPE:4560 with a GF Score™ of 90/100 and a GF Value™ of NT$40.60 (Modestly Undervalued). The stock has 3 warning signs investors should review.

Strong H Machinery Technology Co's Operating Income for the three months ended in Mar. 2026 was NT$77 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was NT$273 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Strong H Machinery Technology Co's Operating Income for the three months ended in Mar. 2026 was NT$77 Mil. Strong H Machinery Technology Co's Revenue for the three months ended in Mar. 2026 was NT$452 Mil. Therefore, Strong H Machinery Technology Co's Operating Margin % for the quarter that ended in Mar. 2026 was 17.00%.

Warning Sign:

Strong H Machinery Technology Co operating margin has been in a 5-year decline. The average rate of decline per year is -1.9%.

Strong H Machinery Technology Co's 5-Year average Growth Rate for Operating Margin % was -1.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Strong H Machinery Technology Co's annualized ROC % for the quarter that ended in Mar. 2026 was 15.52%. Strong H Machinery Technology Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 21.83%.


Strong H Machinery Technology Co  (TPE:4560) Operating Income Explanation

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

Strong H Machinery Technology 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 )
=307.356 * ( 1 - 27.03% )/( (1366.823 + 1523.029)/ 2 )
=224.2776732/1444.926
=15.52 %

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))
=2469.648 - 379.043 - ( 723.782 - max(0, 451.385 - 1667.667+723.782))
=1366.823

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))
=2594.584 - 357.937 - ( 713.618 - max(0, 463.26 - 1757.228+713.618))
=1523.029

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

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

Strong H Machinery Technology 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 )
=287.676/( ( (697.397 + max(547.604, 0)) + (722.115 + max(669.034, 0)) )/ 2 )
=287.676/( ( 1245.001 + 1391.149 )/ 2 )
=287.676/1318.075
=21.83 %

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)
=(394.692 + 482.256 + 50.641) - (379.043 + 0 + 0.94200000000001)
=547.604

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(405.878 + 551.043 + 71.016) - (357.937 + 0 + 0.96600000000001)
=669.034

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 %:

Strong H Machinery Technology 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 )
=76.839/452.015
=17.00 %

* 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.


Strong H Machinery Technology Co Operating Income Related Terms


Strong H Machinery Technology Co Operating Income Historical Data

* Premium members only.

The historical data trend for Strong H Machinery Technology 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.

Strong H Machinery Technology Co Operating Income Chart

Strong H Machinery Technology 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 259.48 333.49 72.21 149.86 271.59

Strong H Machinery Technology 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 75.86 70.25 48.75 76.73 76.84
TPE:4560
90GF Score
Strong H Machinery Technology Co TPE:4560
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Strong H Machinery Technology 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 NT$273 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 NT$273 Mil mean?
Strong H Machinery Technology Co (TPE:4560) has a Operating Income of NT$273 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Strong H Machinery Technology Co and its competitors.
Is Strong H Machinery Technology Co's Operating Income too high?
Strong H Machinery Technology Co's current Operating Income is NT$273 Mil. Overall, Strong H Machinery Technology Co has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Strong H Machinery Technology Co's Operating Income compare to SNA and RBC?
Strong H Machinery Technology Co's Operating Income of NT$273 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 Strong H Machinery Technology Co and its competitors. Strong H Machinery Technology Co's current Operating Income is NT$273 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Strong H Machinery Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Strong H Machinery Technology Co (TPE:4560) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$40.60, compared to a current price of NT$31.50 — trading 22.4% below its estimated fair value. The current Operating Income is NT$273 Mil. Strong H Machinery Technology Co's overall GF Score™ is 90/100 with 3 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 Strong H Machinery Technology Co (TPE:4560), the current Operating Income is NT$273 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 Strong H Machinery Technology Co (TPE:4560) Overvalued in 2026?

Based on GuruFocus' analysis, Strong H Machinery Technology Co stock appears to be undervalued. The current stock price of NT$31.50 is trading 22.4% below its estimated GF Value™ of NT$40.60. GuruFocus considers Strong H Machinery Technology Co to be Modestly Undervalued.

Key valuation signals for TPE:4560:

  • Operating Income: NT$273 Mil
  • GF Value™: NT$40.60 vs. price of NT$31.50 (22.4% below fair value)
  • GF Score™: 90/100 with 3 warning signs

No single metric tells the full story. See the TPE:4560 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Strong H Machinery Technology Co Business Description

Address No. 1699, open road, Development zone, Shandong Province, Laizhou City, CHN
Strong H Machinery Technology Co is a professional precision machining manufacturer. The company mainly produces and sells industrial sewing machine parts for assembly by machine manufacturers and repair by end users. It offers various types of industrial sewing machine knives to customers, including needle plates, teeth, presser feet, and needle embroidery machine knives. Its products include industrial sewing machine knives, straight knives, round knives, gauge sets, needle plate shear lines, and computerized embroidery machine parts. The Group's only reportable segment is the sewing machine spare parts segment, as the Group's main activities are manufacturing and selling sewing machine spare parts. The company operates in China and Taiwan, with the majority of revenue coming from China.
90GF Score

Get the complete analysis for TPE:4560

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

NT$31.50
Price
NT$40.60
GF Value