Zhejiang Shibao CoHKSE:01057 +2.25%85 Operating Margin % is 7.67% as of Mar. 2026, which is 86% above its 10-year median of 4.12. GuruFocus rates HKSE:01057 with a GF Score™ of 85/100 and a GF Value™ of HK$5.60 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,320 Vehicles & Parts companies, Zhejiang Shibao Co ranks better than 66.06% on this metric.
Zhejiang Shibao Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Zhejiang Shibao Co's Operating Margin % or its related term are showing as below:
HKSE:01057'
s Operating Margin % Range Over the Past 10 Years
Min: -11.55 Med: 4.12 Max: 8.63
Current: 7.35
HKSE:01057's Operating Margin % is ranked better than 66.06% of 1320
companies
in the Vehicles & Parts industry
Industry Median: 4.89
vs HKSE:01057: 7.35
Zhejiang Shibao Co's 5-Year Average Operating Margin % Growth Rate was 17.50% per year.
Zhejiang Shibao Co (HKSE:01057) 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.
Zhejiang Shibao Co Operating Margin % Related Terms
Zhejiang Shibao Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Zhejiang Shibao 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:01057 vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Zhejiang Shibao 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.
Zhejiang Shibao Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Zhejiang Shibao Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiang Shibao 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.
Zhejiang Shibao 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.
Zhejiang Shibao Co (HKSE:01057) has a Operating Margin % of 7.67% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Zhejiang Shibao Co and its competitors. This is 86% above median its historical median of 4.12. According to the industry distribution chart, Zhejiang Shibao Co ranks #448 out of 1320 companies in the Vehicles & Parts industry, placing it in the top 33.9%.
Is Zhejiang Shibao Co's Operating Margin % too high?
Zhejiang Shibao Co's current Operating Margin % of 7.67% is 86% above median its 10-year median of 4.12. The Vehicles & Parts industry median Operating Margin % is 4.89. Zhejiang Shibao Co's value of 7.67% is 56.9% above this industry median. Based on the distribution chart, Zhejiang Shibao Co ranks #448 out of 1320 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Zhejiang Shibao Co has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Shibao Co's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Zhejiang Shibao Co ranks #448 out of 1320 companies for Operating Margin %. This puts Zhejiang Shibao Co in the upper half of its industry. The industry median Operating Margin % is 4.89. Zhejiang Shibao Co's value of 7.67% is 56.9% above this benchmark. While the company's 10-year median is 4.12 vs. the industry median of 4.89, Zhejiang Shibao 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.89, based on 1,320 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. Zhejiang Shibao Co's current Operating Margin % of 7.67% is 56.9% 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 Zhejiang Shibao Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Shibao Co's current Operating Margin % is 7.67%, which is 86% above median its own 10-year median of 4.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Shibao Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Shibao Co (HKSE:01057) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$5.60, compared to a current price of HK$3.64 — trading 35% below its estimated fair value. The current Operating Margin % is 7.67%, which is 86% above median its 10-year median of 4.12 and 56.9% above the Vehicles & Parts industry median of 4.89. Zhejiang Shibao Co's overall GF Score™ is 85/100 with 2 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 Zhejiang Shibao Co (HKSE:01057), the current Operating Margin % is 7.67% as of Mar. 2026. 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 Zhejiang Shibao Co (HKSE:01057) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Shibao Co stock appears to be undervalued.
The current stock price of HK$3.64 is trading 35% below its estimated GF Value™ of HK$5.60.
GuruFocus considers Zhejiang Shibao Co to be Significantly Undervalued.
Key valuation signals for HKSE:01057:
Operating Margin %: 7.67% (86% above median its 10-year median of 4.12)
GF Value™: HK$5.60 vs. price of HK$3.64 (35% below fair value)
Industry Position: 56.9% above the Vehicles & Parts median (#448 of 1320)
No single metric tells the full story. See the HKSE:01057 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Shibao Co Ltd is engaged in the development, design, manufacture, and sales of automotive steering gears and other key components and parts of the steering system. The company has five production sites in Hangzhou, Yiwu, Siping, and Wuhu, as well as a group research institute in Hangzhou and an automotive intelligent technology research and development center in Beijing. The company is capable of providing all kinds of steering products for commercial cars, passenger cars, and new energy cars. The company derives a majority of revenue domestically from China.
85GF Score
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