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Ngai Hing Hong CoHKSE:01047 30 Operating Margin % is 1.82% as of Dec. 2025, which is 21% above its 10-year median of 1.51. GuruFocus rates HKSE:01047 with a GF Score™ of 30/100 and a GF Value™ of HK$0.36 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,579 Chemicals companies, Ngai Hing Hong Co ranks worse than 69.47% on this metric.
Ngai Hing Hong Co (HKSE:01047) 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.
Ngai Hing Hong Co Operating Margin % Related Terms
Ngai Hing Hong Co Operating Margin % Historical Data
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The historical data trend for Ngai Hing Hong 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:01047 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Ngai Hing Hong 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.
Ngai Hing Hong Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Ngai Hing Hong Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ngai Hing Hong Co's Operating Margin % falls into.
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.
Ngai Hing Hong Co's Operating Margin % for the fiscal year that ended in Jun. 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.
Ngai Hing Hong Co (HKSE:01047) has a Operating Margin % of 1.82% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Ngai Hing Hong Co and its competitors. This is 21% above median its historical median of 1.51. According to the industry distribution chart, Ngai Hing Hong Co ranks #1097 out of 1579 companies in the Chemicals industry, placing it in the top 69.5%.
Is Ngai Hing Hong Co's Operating Margin % too high?
Ngai Hing Hong Co's current Operating Margin % of 1.82% is 21% above median its 10-year median of 1.51. The Chemicals industry median Operating Margin % is 6.17. Ngai Hing Hong Co's value of 1.82% is 70.5% below this industry median. Based on the distribution chart, Ngai Hing Hong Co ranks #1097 out of 1579 companies in the Chemicals industry, which is below the industry midpoint. Overall, Ngai Hing Hong Co has a GF Score™ of 30/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ngai Hing Hong Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Ngai Hing Hong Co ranks #1097 out of 1579 companies for Operating Margin %. This places Ngai Hing Hong Co in the lower half of its industry. The industry median Operating Margin % is 6.17. Ngai Hing Hong Co's value of 1.82% is 70.5% below this benchmark. While the company's 10-year median is 1.51 vs. the industry median of 6.17, Ngai Hing Hong Co 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.17, based on 1,579 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. Ngai Hing Hong Co's current Operating Margin % of 1.82% is 70.5% 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 Ngai Hing Hong Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ngai Hing Hong Co's current Operating Margin % is 1.82%, which is 21% above median its own 10-year median of 1.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ngai Hing Hong Co stock overvalued right now?
Based on GuruFocus' analysis, Ngai Hing Hong Co (HKSE:01047) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.36, compared to a current price of HK$0.34 — trading 5.6% below its estimated fair value. The current Operating Margin % is 1.82%, which is 21% above median its 10-year median of 1.51 and 70.5% below the Chemicals industry median of 6.17. Ngai Hing Hong Co's overall GF Score™ is 30/100 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 Ngai Hing Hong Co (HKSE:01047), the current Operating Margin % is 1.82% 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 Ngai Hing Hong Co (HKSE:01047) Overvalued in 2026?
Based on GuruFocus' analysis, Ngai Hing Hong Co stock appears to be undervalued.
The current stock price of HK$0.34 is trading 5.6% below its estimated GF Value™ of HK$0.36.
GuruFocus considers Ngai Hing Hong Co to be Fairly Valued.
Key valuation signals for HKSE:01047:
Operating Margin %: 1.82% (21% above median its 10-year median of 1.51)
GF Value™: HK$0.36 vs. price of HK$0.34 (5.6% below fair value)
Industry Position: 70.5% below the Chemicals median (#1097 of 1579)
No single metric tells the full story. See the HKSE:01047 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ngai Hing Hong Co Ltd is a Hong Kong-based investment holding company. Along with its subsidiaries, the company is involved in the rubber and plastic business sectors. The company is principally engaged in the manufacturing and trading of plastic materials, pigments, colorants, compounded plastic resins, and engineering plastic products. The business of this company is divided into various segments that include Trading, Colorants, Engineering Plastics, and Others. A substantial portion of the company's overall revenue is generated from its Trading business which is involved in the trading of plastic materials.
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