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Luen Thai HoldingsHKSE:00311 43 Operating Margin % is 2.26% as of Dec. 2025, which is 8% above its 10-year median of 2.10. GuruFocus rates HKSE:00311 with a GF Score™ of 43/100 and a GF Value™ of HK$0.19 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,042 Manufacturing - Apparel & Accessories companies, Luen Thai Holdings ranks worse than 62.28% on this metric.
The historical rank and industry rank for Luen Thai Holdings's Operating Margin % or its related term are showing as below:
HKSE:00311'
s Operating Margin % Range Over the Past 10 Years
Min: -3.26 Med: 2.1 Max: 4.03
Current: 1.88
HKSE:00311's Operating Margin % is ranked worse than 62.28% of 1042
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.085
vs HKSE:00311: 1.88
Luen Thai Holdings's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
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.
Luen Thai Holdings Operating Margin % Related Terms
Luen Thai Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for Luen Thai Holdings's Operating Margin % 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.
HKSE:00311 vs RL, LEVI, VFC: Operating Margin % Comparison
For the Apparel Manufacturing subindustry, Luen Thai 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.
Luen Thai Holdings Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Luen Thai Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Luen Thai Holdings's Operating Margin % falls into.
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.
Luen Thai 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.
Luen Thai Holdings (HKSE:00311) has a Operating Margin % of 2.26% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Luen Thai Holdings and its competitors. This is near median its historical median of 2.10. According to the industry distribution chart, Luen Thai Holdings ranks #649 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 62.3%.
Is Luen Thai Holdings' Operating Margin % too high?
Luen Thai Holdings' current Operating Margin % of 2.26% is near median its 10-year median of 2.10. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.09. Luen Thai Holdings' value of 2.26% is 44.7% below this industry median. Based on the distribution chart, Luen Thai Holdings ranks #649 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Luen Thai Holdings has a GF Score™ of 43/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Luen Thai Holdings' Operating Margin % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Luen Thai Holdings ranks #649 out of 1042 companies for Operating Margin %. This places Luen Thai Holdings in the lower half of its industry. The industry median Operating Margin % is 4.09. Luen Thai Holdings' value of 2.26% is 44.7% below this benchmark. While the company's 10-year median is 2.10 vs. the industry median of 4.09, Luen Thai 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.09, based on 1,042 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. Luen Thai Holdings's current Operating Margin % of 2.26% is 44.7% 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 Luen Thai Holdings and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luen Thai Holdings's current Operating Margin % is 2.26%, which is near median its own 10-year median of 2.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luen Thai Holdings stock overvalued right now?
Based on GuruFocus' analysis, Luen Thai Holdings (HKSE:00311) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.19, compared to a current price of HK$0.23 — trading 22.6% above its estimated fair value. The current Operating Margin % is 2.26%, which is near median its 10-year median of 2.10 and 44.7% below the Manufacturing - Apparel & Accessories industry median of 4.09. Luen Thai Holdings' overall GF Score™ is 43/100 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 Luen Thai Holdings (HKSE:00311), the current Operating Margin % is 2.26% 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 Luen Thai Holdings (HKSE:00311) Overvalued in 2026?
Based on GuruFocus' analysis, Luen Thai Holdings stock appears to be overvalued.
The current stock price of HK$0.23 is trading 22.6% above its estimated GF Value™ of HK$0.19.
GuruFocus considers Luen Thai Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:00311:
Operating Margin %: 2.26% (near median its 10-year median of 2.10)
GF Value™: HK$0.19 vs. price of HK$0.23 (22.6% above fair value)
Industry Position: 44.7% below the Manufacturing - Apparel & Accessories median (#649 of 1042)
No single metric tells the full story. See the HKSE:00311 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luen Thai Holdings Ltd principally engaged in the manufacturing and trading of apparels and accessories. The Group has manufacturing plants in the People's Republic of China, Cambodia, the Philippines and Myanmar. The company has two operating segments, Apparel and Accessories. The company generates the majority of its revenue from the Apparel segment. The company has presence in United States, PRC (including Hong Kong and Macao), Europe (including the United Kingdom and Germany), South America (including Mexico and Chile), Canada, Japan, and Others. The company generates majority of revenue from United States.
43GF Score
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