China Merchants LandHKSE:00978 -1.26%44 Operating Margin % is 2.39% as of Dec. 2025, which is 85% below its 10-year median of 16.29. GuruFocus rates HKSE:00978 with a GF Score™ of 44/100 and a GF Value™ of HK$0.32 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,748 Real Estate companies, China Merchants Land ranks worse than 72.2% on this metric.
China Merchants Land Ltd has recorded a loss in operating income at least once over the past 3 years.
China Merchants Land (HKSE:00978) 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 Merchants Land Operating Margin % Related Terms
China Merchants Land Operating Margin % Historical Data
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The historical data trend for China Merchants Land'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.
China Merchants Land Operating Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, China Merchants Land'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 Merchants Land Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China Merchants Land's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Merchants Land's Operating Margin % falls into.
China Merchants Land 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.
China Merchants Land'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.
China Merchants Land (HKSE:00978) has a Operating Margin % of 2.39% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Merchants Land and its competitors. This is 85% below median its historical median of 16.29. According to the industry distribution chart, China Merchants Land ranks #1262 out of 1748 companies in the Real Estate industry, placing it in the top 72.2%.
Is China Merchants Land's Operating Margin % too high?
China Merchants Land's current Operating Margin % of 2.39% is 85% below median its 10-year median of 16.29. The Real Estate industry median Operating Margin % is 13.22. China Merchants Land's value of 2.39% is 81.9% below this industry median. Based on the distribution chart, China Merchants Land ranks #1262 out of 1748 companies in the Real Estate industry, which is below the industry midpoint. Overall, China Merchants Land has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Land's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, China Merchants Land ranks #1262 out of 1748 companies for Operating Margin %. This places China Merchants Land in the lower half of its industry. The industry median Operating Margin % is 13.22. China Merchants Land's value of 2.39% is 81.9% below this benchmark. While the company's 10-year median is 16.29 vs. the industry median of 13.22, China Merchants Land 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.22, based on 1,748 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. China Merchants Land's current Operating Margin % of 2.39% is 81.9% 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 China Merchants Land and its competitors. For the Real Estate industry, the median Operating Margin % is 13.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Merchants Land's current Operating Margin % is 2.39%, which is 85% below median its own 10-year median of 16.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Land stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Land (HKSE:00978) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.32, compared to a current price of HK$0.24 — trading 26.3% below its estimated fair value. The current Operating Margin % is 2.39%, which is 85% below median its 10-year median of 16.29 and 81.9% below the Real Estate industry median of 13.22. China Merchants Land's overall GF Score™ is 44/100 with 8 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 Merchants Land (HKSE:00978), the current Operating Margin % is 2.39% 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 China Merchants Land (HKSE:00978) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Land stock appears to be undervalued.
The current stock price of HK$0.24 is trading 26.3% below its estimated GF Value™ of HK$0.32.
GuruFocus considers China Merchants Land to be Modestly Undervalued.
Key valuation signals for HKSE:00978:
Operating Margin %: 2.39% (85% below median its 10-year median of 16.29)
GF Value™: HK$0.32 vs. price of HK$0.24 (26.3% below fair value)
Industry Position: 81.9% below the Real Estate median (#1262 of 1748)
No single metric tells the full story. See the HKSE:00978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Land Ltd is an investment holding company. The company is principally engaged in the development, sale, lease, investment and management of properties; assets management; and investment holding activities. The company has two operating segment Development and sales of properties and property leasing (Properties Segment); and Asset management for office premises and shopping malls (Asset Management Segment). The company generated majority of revenue from Properties Segment. The company has presence in Foshan, Guangzhou, Nanjing and Jurong, Chongqing, Xi'an, and Hong Kong.
44GF Score
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