South China Holdings CoHKSE:00413 +4.00% Operating Margin % is -15.10% as of Dec. 2025. The stock has 3 warning signs investors should review. Among 844 Travel & Leisure companies, South China Holdings Co ranks worse than 87.8% on this metric.
The historical rank and industry rank for South China Holdings Co's Operating Margin % or its related term are showing as below:
HKSE:00413'
s Operating Margin % Range Over the Past 10 Years
Min: -14.98 Med: 2.55 Max: 5.54
Current: -14.98
HKSE:00413's Operating Margin % is ranked worse than 87.8% of 844
companies
in the Travel & Leisure industry
Industry Median: 8.135
vs HKSE:00413: -14.98
South China Holdings Co (HKSE:00413) 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.
South China Holdings Co Operating Margin % Related Terms
South China Holdings Co Operating Margin % Historical Data
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The historical data trend for South China Holdings Co'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:00413 vs AS, HAS, LTH: Operating Margin % Comparison
For the Leisure subindustry, South China Holdings 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.
South China Holdings Co Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, South China Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where South China Holdings Co's Operating Margin % falls into.
South China Holdings 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.
South China Holdings Co'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.
South China Holdings Co (HKSE:00413) has a Operating Margin % of -15.10% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on South China Holdings Co and its competitors. According to the industry distribution chart, South China Holdings Co ranks #741 out of 844 companies in the Travel & Leisure industry, placing it in the top 87.8%.
Is South China Holdings Co's Operating Margin % too high?
South China Holdings Co's current Operating Margin % is -15.10%. Based on the distribution chart, South China Holdings Co ranks #741 out of 844 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers.
How does South China Holdings Co's Operating Margin % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, South China Holdings Co ranks #741 out of 844 companies for Operating Margin %. This places South China Holdings Co in the lower half of its industry. The industry median Operating Margin % is 8.14. 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 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. 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 South China Holdings Co and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South China Holdings Co's current Operating Margin % is -15.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South China Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, South China Holdings Co (HKSE:00413) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.03, compared to a current price of HK$0.03 — trading 13.3% below its estimated fair value. The current Operating Margin % is -15.10%. 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 South China Holdings Co (HKSE:00413), the current Operating Margin % is -15.10% 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.
South China Holdings Co Ltd is a trading and manufacturing company. The company operates its business through four segments, namely Trading and Manufacturing, Property investment and development, Agriculture and forestry, and the Others segment. Its business activities include trading and manufacturing toys, footwear, and leather products, as well as cultivating fruit trees and rearing livestock and aquatic products. It is also engaged in developing properties and investment holding with management functions. The majority of the company's revenues are derived from the Trading and Manufacturing segment. Its geographical segments are the United States of America, Europe, the PRC, including Hong Kong, Japan, and Others. It derives maximum revenue from the USA.
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