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China Electronics Huada Technology CoHKSE:00085 68 Operating Margin % is 8.31% as of Dec. 2025, which is 22% above its 10-year median of 6.82. GuruFocus rates HKSE:00085 with a GF Score™ of 68/100 and a GF Value™ of HK$1.14 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,025 Semiconductors companies, China Electronics Huada Technology Co ranks better than 58.83% on this metric.
HKSE:00085'
s Operating Margin % Range Over the Past 10 Years
Min: 5.88 Med: 6.82 Max: 26.19
Current: 10.28
HKSE:00085's Operating Margin % is ranked better than 58.83% of 1025
companies
in the Semiconductors industry
Industry Median: 6.71
vs HKSE:00085: 10.28
China Electronics Huada Technology Co (HKSE:00085) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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.
China Electronics Huada Technology Co Operating Margin % Related Terms
China Electronics Huada Technology Co Operating Margin % Historical Data
* 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.
China Electronics Huada Technology Co Operating Margin % Chart
HKSE:00085 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, China Electronics Huada Technology Co's Operating Margin %, along with its competitors' market caps and Operating 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.
China Electronics Huada Technology Co Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, China Electronics Huada Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Electronics Huada Technology Co's Operating Margin % falls into.
China Electronics Huada Technology Co Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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.
China Electronics Huada Technology Co (HKSE:00085) has a Operating Margin % of 8.31% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Electronics Huada Technology Co and its competitors. This is 22% above median its historical median of 6.82. Over the past decade, China Electronics Huada Technology Co's Operating Margin % has ranged from 5.88 to 26.19. According to the industry distribution chart, China Electronics Huada Technology Co ranks #422 out of 1025 companies in the Semiconductors industry, placing it in the top 41.2%.
Is China Electronics Huada Technology Co's Operating Margin % too high?
China Electronics Huada Technology Co's current Operating Margin % of 8.31% is 22% above median its 10-year median of 6.82. Over the past 10 years, this metric has ranged from a low of 5.88 to a high of 26.19. The Semiconductors industry median Operating Margin % is 6.71. China Electronics Huada Technology Co's value of 8.31% is 23.8% above this industry median. Based on the distribution chart, China Electronics Huada Technology Co ranks #422 out of 1025 companies in the Semiconductors industry, which is above the industry midpoint. Overall, China Electronics Huada Technology Co has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Electronics Huada Technology Co's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, China Electronics Huada Technology Co ranks #422 out of 1025 companies for Operating Margin %. This puts China Electronics Huada Technology Co in the upper half of its industry. The industry median Operating Margin % is 6.71. China Electronics Huada Technology Co's value of 8.31% is 23.8% above this benchmark. Historically, China Electronics Huada Technology Co's own Operating Margin % has ranged from 5.88 to 26.19 over the past decade. While the company's 10-year median is 6.82 vs. the industry median of 6.71, China Electronics Huada Technology 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 Operating Margin % for a Semiconductors company?
The median Operating Margin % among Semiconductors companies is 6.71, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Electronics Huada Technology Co's current Operating Margin % of 8.31% is 23.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on China Electronics Huada Technology Co and its competitors. For the Semiconductors industry, the median Operating Margin % is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Electronics Huada Technology Co's current Operating Margin % is 8.31%, which is 22% above median its own 10-year median of 6.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Electronics Huada Technology Co stock overvalued right now?
Based on GuruFocus' analysis, China Electronics Huada Technology Co (HKSE:00085) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$1.14, compared to a current price of HK$0.89 — trading 21.9% below its estimated fair value. The current Operating Margin % is 8.31%, which is 22% above median its 10-year median of 6.82 and 23.8% above the Semiconductors industry median of 6.71. China Electronics Huada Technology Co's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For China Electronics Huada Technology Co (HKSE:00085), the current Operating Margin % is 8.31% 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 China Electronics Huada Technology Co (HKSE:00085) Overvalued in 2026?
Based on GuruFocus' analysis, China Electronics Huada Technology Co stock appears to be undervalued.
The current stock price of HK$0.89 is trading 21.9% below its estimated GF Value™ of HK$1.14.
GuruFocus considers China Electronics Huada Technology Co to be Modestly Undervalued.
Key valuation signals for HKSE:00085:
Operating Margin %: 8.31% (22% above median its 10-year median of 6.82)
GF Value™: HK$1.14 vs. price of HK$0.89 (21.9% below fair value)
Industry Position: 23.8% above the Semiconductors median (#422 of 1025)
No single metric tells the full story. See the HKSE:00085 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Electronics Huada Technology Co Ltd is an investment holding company. The principal activities of the Group are the design and sale of integrated circuit chips. The Group's integrated circuits design business comprises the design of smart cards and secure element chips and the development of application systems. Its products are mainly used in the sectors of identity authentication, financial payment, government utilities, telecommunications, Internet of Things and Internet of Vehicles. Its segment is sale of integrated circuit products and provision of services. The Group generates revenue from Mainland China.
68GF Score
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