China HK Power Smart Energy Group Ltd has never been profitable in the past 3 years. It lost money every year.
China HK Power Smart Energy Group (HKSE:00931) 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.
China HK Power Smart Energy Group Operating Margin % Related Terms
China HK Power Smart Energy Group 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.
China HK Power Smart Energy Group Operating Margin % Chart
HKSE:00931 vs VLO, MPC, PSX: Operating Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, China HK Power Smart Energy Group'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.
China HK Power Smart Energy Group Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, China HK Power Smart Energy Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China HK Power Smart Energy Group's Operating Margin % falls into.
China HK Power Smart Energy Group 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.
* 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.
China HK Power Smart Energy Group (HKSE:00931) has a Operating Margin % of -16.33% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China HK Power Smart Energy Group and its competitors. According to the industry distribution chart, China HK Power Smart Energy Group ranks #739 out of 921 companies in the Oil & Gas industry, placing it in the top 80.2%.
Is China HK Power Smart Energy Group's Operating Margin % too high?
China HK Power Smart Energy Group's current Operating Margin % is -16.33%. Based on the distribution chart, China HK Power Smart Energy Group ranks #739 out of 921 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, China HK Power Smart Energy Group has a GF Score™ of 34/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China HK Power Smart Energy Group's Operating Margin % compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, China HK Power Smart Energy Group ranks #739 out of 921 companies for Operating Margin %. This places China HK Power Smart Energy Group in the lower half of its industry. The industry median Operating Margin % is 6.85. 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 an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.85, based on 921 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 China HK Power Smart Energy Group and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China HK Power Smart Energy Group's current Operating Margin % is -16.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China HK Power Smart Energy Group stock overvalued right now?
Based on GuruFocus' analysis, China HK Power Smart Energy Group (HKSE:00931) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.74, compared to a current price of HK$0.27 — trading 63.5% below its estimated fair value. The current Operating Margin % is -16.33%. China HK Power Smart Energy Group's overall GF Score™ is 34/100 with 5 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 China HK Power Smart Energy Group (HKSE:00931), the current Operating Margin % is -16.33% as of Sep. 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 China HK Power Smart Energy Group (HKSE:00931) Overvalued in 2026?
Based on GuruFocus' analysis, China HK Power Smart Energy Group stock appears to be undervalued.
The current stock price of HK$0.27 is trading 63.5% below its estimated GF Value™ of HK$0.74.
GuruFocus considers China HK Power Smart Energy Group to be Possible Value Trap.
Key valuation signals for HKSE:00931:
Operating Margin %: -16.33%
GF Value™: HK$0.74 vs. price of HK$0.27 (63.5% below fair value)
No single metric tells the full story. See the HKSE:00931 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China HK Power Smart Energy Group Business Description
China HK Power Smart Energy Group Ltd is engaged in the development of new energy businesses, which include investment, construction & operation of liquefied natural gas infrastructure, and financial leasing services. Its segments include: New energy business; NG business; and Financial services. The majority of revenue is from NG business, which includes: Sales and distribution of NG including wholesale of LNG and PNG, point-to-point supply of LNG, automobile gas stations, LNG pipeline network and provision of LNG logistic services in the PRC.
34GF Score
Get the complete analysis for HKSE:00931
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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