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.
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.
Chinasoft InternationalHKSE:00354 -0.54%86 Operating Margin % is 4.35% as of Jun. 2026, which is 41% below its 10-year median of 7.41. GuruFocus rates HKSE:00354 with a GF Score™ of 86/100 and a GF Value™ of HK$5.80 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 2,826 Software companies, Chinasoft International ranks worse than 52.48% on this metric.
Chinasoft International (HKSE:00354) 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.
Chinasoft International Operating Margin % Related Terms
Chinasoft International Operating Margin % Historical Data
* Premium members only.
The historical data trend for Chinasoft International'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:00354 vs IBM, ACN, CTSH: Operating Margin % Comparison
For the Information Technology Services subindustry, Chinasoft International'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.
Chinasoft International Operating Margin % vs Software Industry
For the Software industry and Technology sector, Chinasoft International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chinasoft International's Operating Margin % falls into.
Chinasoft International 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.
Chinasoft International'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.
Chinasoft International (HKSE:00354) has a Operating Margin % of 4.35% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chinasoft International and its competitors. This is 41% below median its historical median of 7.41. Over the past decade, Chinasoft International's Operating Margin % has ranged from 2.82 to 9.59. According to the industry distribution chart, Chinasoft International ranks #1483 out of 2826 companies in the Software industry, placing it in the top 52.5%.
Is Chinasoft International's Operating Margin % too high?
Chinasoft International's current Operating Margin % of 4.35% is 41% below median its 10-year median of 7.41. Over the past 10 years, this metric has ranged from a low of 2.82 to a high of 9.59. The Software industry median Operating Margin % is 3.84. Chinasoft International's value of 4.35% is 13.3% above this industry median. Based on the distribution chart, Chinasoft International ranks #1483 out of 2826 companies in the Software industry, which is below the industry midpoint. Overall, Chinasoft International has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chinasoft International's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Chinasoft International ranks #1483 out of 2826 companies for Operating Margin %. This places Chinasoft International in the lower half of its industry. The industry median Operating Margin % is 3.84. Chinasoft International's value of 4.35% is 13.3% above this benchmark. Historically, Chinasoft International's own Operating Margin % has ranged from 2.82 to 9.59 over the past decade. While the company's 10-year median is 7.41 vs. the industry median of 3.84, Chinasoft International 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 Software company?
The median Operating Margin % among Software companies is 3.84, based on 2,826 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. Chinasoft International's current Operating Margin % of 4.35% is 13.3% 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 Chinasoft International and its competitors. For the Software industry, the median Operating Margin % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinasoft International's current Operating Margin % is 4.35%, which is 41% below median its own 10-year median of 7.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinasoft International stock overvalued right now?
Based on GuruFocus' analysis, Chinasoft International (HKSE:00354) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$5.80, compared to a current price of HK$3.69 — trading 36.5% below its estimated fair value. The current Operating Margin % is 4.35%, which is 41% below median its 10-year median of 7.41 and 13.3% above the Software industry median of 3.84. Chinasoft International's overall GF Score™ is 86/100 with 7 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 Chinasoft International (HKSE:00354), the current Operating Margin % is 4.35% as of Jun. 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 Chinasoft International (HKSE:00354) Overvalued in 2026?
Based on GuruFocus' analysis, Chinasoft International stock appears to be undervalued.
The current stock price of HK$3.69 is trading 36.5% below its estimated GF Value™ of HK$5.80.
GuruFocus considers Chinasoft International to be Significantly Undervalued.
Key valuation signals for HKSE:00354:
Operating Margin %: 4.35% (41% below median its 10-year median of 7.41)
GF Value™: HK$5.80 vs. price of HK$3.69 (36.5% below fair value)
Industry Position: 13.3% above the Software median (#1483 of 2826)
No single metric tells the full story. See the HKSE:00354 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chinasoft International Ltd is an investment holding company. The principal activities of the Company and its subsidiaries are development and provision of information technology (IT) solutions services, and IT outsourcing services. The company's Nature of goods and services Project-based development services, Outsourcing services, Other services, Sales of software and hardware products of which majority of revenue comes from Outsourcing services. The group now has only one operating segment. The Group's operations are mainly located in its country of domicile, the People's Republic of China. The company has presence in PRC, Malaysia, Japan, Saudi Arabia, Singapore, India, and Indonesia. The majority of revenue comes from PRC.
86GF Score
Get the complete analysis for HKSE:00354
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:00354 has been successfully added to your 
