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.
Lee & Man Chemical CoHKSE:00746 -2.69%71 Operating Margin % is 16.90% as of Dec. 2025, which is 27% below its 10-year median of 23.31. GuruFocus rates HKSE:00746 with a GF Score™ of 71/100 and a GF Value™ of HK$3.92 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,581 Chemicals companies, Lee & Man Chemical Co ranks better than 90.01% on this metric.
Lee & Man Chemical Co (HKSE:00746) 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.
Lee & Man Chemical Co Operating Margin % Related Terms
Lee & Man Chemical Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Lee & Man Chemical 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.
For the Chemicals subindustry, Lee & Man Chemical 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.
Lee & Man Chemical Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Lee & Man Chemical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lee & Man Chemical Co's Operating Margin % falls into.
Lee & Man Chemical 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.
Lee & Man Chemical 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.
Lee & Man Chemical Co (HKSE:00746) has a Operating Margin % of 16.90% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Lee & Man Chemical Co and its competitors. This is 27% below median its historical median of 23.31. Over the past decade, Lee & Man Chemical Co's Operating Margin % has ranged from 13.31 to 31.85. According to the industry distribution chart, Lee & Man Chemical Co ranks #158 out of 1581 companies in the Chemicals industry, placing it in the top 10%.
Is Lee & Man Chemical Co's Operating Margin % too high?
Lee & Man Chemical Co's current Operating Margin % of 16.90% is 27% below median its 10-year median of 23.31. Over the past 10 years, this metric has ranged from a low of 13.31 to a high of 31.85. The Chemicals industry median Operating Margin % is 6.29. Lee & Man Chemical Co's value of 16.90% is 168.7% above this industry median. Based on the distribution chart, Lee & Man Chemical Co ranks #158 out of 1581 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Lee & Man Chemical Co has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lee & Man Chemical Co's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Lee & Man Chemical Co ranks #158 out of 1581 companies for Operating Margin %. This places Lee & Man Chemical Co in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.29. Lee & Man Chemical Co's value of 16.90% is 168.7% above this benchmark. Historically, Lee & Man Chemical Co's own Operating Margin % has ranged from 13.31 to 31.85 over the past decade. While the company's 10-year median is 23.31 vs. the industry median of 6.29, Lee & Man Chemical 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.29, based on 1,581 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. Lee & Man Chemical Co's current Operating Margin % of 16.90% is 168.7% 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 Lee & Man Chemical Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lee & Man Chemical Co's current Operating Margin % is 16.90%, which is 27% below median its own 10-year median of 23.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lee & Man Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Lee & Man Chemical Co (HKSE:00746) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$3.92, compared to a current price of HK$4.70 — trading 19.9% above its estimated fair value. The current Operating Margin % is 16.90%, which is 27% below median its 10-year median of 23.31 and 168.7% above the Chemicals industry median of 6.29. Lee & Man Chemical Co's overall GF Score™ is 71/100 with 3 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 Lee & Man Chemical Co (HKSE:00746), the current Operating Margin % is 16.90% 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 Lee & Man Chemical Co (HKSE:00746) Overvalued in 2026?
Based on GuruFocus' analysis, Lee & Man Chemical Co stock appears to be overvalued.
The current stock price of HK$4.70 is trading 19.9% above its estimated GF Value™ of HK$3.92.
GuruFocus considers Lee & Man Chemical Co to be Modestly Overvalued.
Key valuation signals for HKSE:00746:
Operating Margin %: 16.90% (27% below median its 10-year median of 23.31)
GF Value™: HK$3.92 vs. price of HK$4.70 (19.9% above fair value)
Industry Position: 168.7% above the Chemicals median (#158 of 1581)
No single metric tells the full story. See the HKSE:00746 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lee & Man Chemical Co Ltd is an investment holding company. The company is engaged in the manufacture and sale of chemical products. Its products include Polymers, Basic Chemicals, Food / Water Additives, Paper Additives, and Lithium Ion Battery Additives. Its segment includes the Chemical segment manufacture and sale of chemical products; and the Property segment engaged in the development and sale of properties, properties held for rental, and supply of related property services. It generates the majority of its revenue from the Chemical segment. Its operations of the two segments are both located in the PRC. Its revenue of the Group's from external customers is derived from the PRC.
71GF Score
Get the complete analysis for HKSE:00746
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:00746 has been successfully added to your 
