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Shougang Century HoldingsHKSE:00103 -3.65%61 Operating Margin % is 1.97% as of Dec. 2025, which is 44% below its 10-year median of 3.51. GuruFocus rates HKSE:00103 with a GF Score™ of 61/100 and a GF Value™ of HK$1.11 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 611 Steel companies, Shougang Century Holdings ranks worse than 61.54% on this metric.
Shougang Century Holdings (HKSE:00103) 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.
Shougang Century Holdings Operating Margin % Related Terms
Shougang Century Holdings 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.
Shougang Century Holdings Operating Margin % Chart
HKSE:00103 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Shougang Century Holdings'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.
Shougang Century Holdings Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Shougang Century Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shougang Century Holdings's Operating Margin % falls into.
Shougang Century Holdings 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.
Shougang Century Holdings's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Shougang Century Holdings (HKSE:00103) has a Operating Margin % of 1.97% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Shougang Century Holdings and its competitors. This is 44% below median its historical median of 3.51. According to the industry distribution chart, Shougang Century Holdings ranks #376 out of 611 companies in the Steel industry, placing it in the top 61.5%.
Is Shougang Century Holdings' Operating Margin % too high?
Shougang Century Holdings' current Operating Margin % of 1.97% is 44% below median its 10-year median of 3.51. The Steel industry median Operating Margin % is 3.12. Shougang Century Holdings' value of 1.97% is 36.9% below this industry median. Based on the distribution chart, Shougang Century Holdings ranks #376 out of 611 companies in the Steel industry, which is below the industry midpoint. Overall, Shougang Century Holdings has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shougang Century Holdings' Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Shougang Century Holdings ranks #376 out of 611 companies for Operating Margin %. This places Shougang Century Holdings in the lower half of its industry. The industry median Operating Margin % is 3.12. Shougang Century Holdings' value of 1.97% is 36.9% below this benchmark. While the company's 10-year median is 3.51 vs. the industry median of 3.12, Shougang Century Holdings has consistently been below 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 Steel company?
The median Operating Margin % among Steel companies is 3.12, based on 611 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. Shougang Century Holdings's current Operating Margin % of 1.97% is 36.9% below 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 Shougang Century Holdings and its competitors. For the Steel industry, the median Operating Margin % is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shougang Century Holdings's current Operating Margin % is 1.97%, which is 44% below median its own 10-year median of 3.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shougang Century Holdings stock overvalued right now?
Based on GuruFocus' analysis, Shougang Century Holdings (HKSE:00103) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.11, compared to a current price of HK$1.85 — trading 66.7% above its estimated fair value. The current Operating Margin % is 1.97%, which is 44% below median its 10-year median of 3.51 and 36.9% below the Steel industry median of 3.12. Shougang Century Holdings' overall GF Score™ is 61/100 with 8 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 Shougang Century Holdings (HKSE:00103), the current Operating Margin % is 1.97% 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 Shougang Century Holdings (HKSE:00103) Overvalued in 2026?
Based on GuruFocus' analysis, Shougang Century Holdings stock appears to be overvalued.
The current stock price of HK$1.85 is trading 66.7% above its estimated GF Value™ of HK$1.11.
GuruFocus considers Shougang Century Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00103:
Operating Margin %: 1.97% (44% below median its 10-year median of 3.51)
GF Value™: HK$1.11 vs. price of HK$1.85 (66.7% above fair value)
Industry Position: 36.9% below the Steel median (#376 of 611)
No single metric tells the full story. See the HKSE:00103 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shougang Century Holdings Ltd, along with its subsidiaries, is engaged in the manufacturing and sales of steel cords for radial tyres, sawing wires, and hose wires. The steel cords are specifically used in radial tires. The company generates the majority of its revenue from the steel cord business in China. The Group's operations are currently organized into one reportable segment: steel cord.
61GF Score
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