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Hengxin TechnologyHKSE:01085 -5.00%65 Operating Margin % is 6.07% as of Dec. 2025, which is 8% below its 10-year median of 6.58. GuruFocus rates HKSE:01085 with a GF Score™ of 65/100 and a GF Value™ of HK$1.25 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,476 Hardware companies, Hengxin Technology ranks better than 53.59% on this metric.
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.
Hengxin Technology Operating Margin % Related Terms
Hengxin Technology Operating Margin % Historical Data
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The historical data trend for Hengxin Technology'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:01085 vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Hengxin Technology'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.
Hengxin Technology Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Hengxin Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hengxin Technology'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.
Hengxin Technology'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.
Hengxin Technology (HKSE:01085) has a Operating Margin % of 6.07% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hengxin Technology and its competitors. This is near median its historical median of 6.58. Over the past decade, Hengxin Technology's Operating Margin % has ranged from 4.15 to 9.76. According to the industry distribution chart, Hengxin Technology ranks #1149 out of 2476 companies in the Hardware industry, placing it in the top 46.4%.
Is Hengxin Technology's Operating Margin % too high?
Hengxin Technology's current Operating Margin % of 6.07% is near median its 10-year median of 6.58. Over the past 10 years, this metric has ranged from a low of 4.15 to a high of 9.76. The Hardware industry median Operating Margin % is 3.81. Hengxin Technology's value of 6.07% is 59.3% above this industry median. Based on the distribution chart, Hengxin Technology ranks #1149 out of 2476 companies in the Hardware industry, which is above the industry midpoint. Overall, Hengxin Technology has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hengxin Technology's Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Hengxin Technology ranks #1149 out of 2476 companies for Operating Margin %. This puts Hengxin Technology in the upper half of its industry. The industry median Operating Margin % is 3.81. Hengxin Technology's value of 6.07% is 59.3% above this benchmark. Historically, Hengxin Technology's own Operating Margin % has ranged from 4.15 to 9.76 over the past decade. While the company's 10-year median is 6.58 vs. the industry median of 3.81, Hengxin Technology 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,476 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. Hengxin Technology's current Operating Margin % of 6.07% is 59.3% 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 Hengxin Technology and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengxin Technology's current Operating Margin % is 6.07%, which is near median its own 10-year median of 6.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengxin Technology stock overvalued right now?
Based on GuruFocus' analysis, Hengxin Technology (HKSE:01085) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.25, compared to a current price of HK$1.71 — trading 36.8% above its estimated fair value. The current Operating Margin % is 6.07%, which is near median its 10-year median of 6.58 and 59.3% above the Hardware industry median of 3.81. Hengxin Technology's overall GF Score™ is 65/100 with 7 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 Hengxin Technology (HKSE:01085), the current Operating Margin % is 6.07% 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 Hengxin Technology (HKSE:01085) Overvalued in 2026?
Based on GuruFocus' analysis, Hengxin Technology stock appears to be overvalued.
The current stock price of HK$1.71 is trading 36.8% above its estimated GF Value™ of HK$1.25.
GuruFocus considers Hengxin Technology to be Significantly Overvalued.
Key valuation signals for HKSE:01085:
Operating Margin %: 6.07% (near median its 10-year median of 6.58)
GF Value™: HK$1.25 vs. price of HK$1.71 (36.8% above fair value)
Industry Position: 59.3% above the Hardware median (#1149 of 2476)
No single metric tells the full story. See the HKSE:01085 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hengxin Technology Ltd is an investment holding company. Along with its subsidiaries are engaged in the chips research, design, sales and supply chain services, semiconductor, intellectual property authorization business, and digital security products and services; the supply of electricity with a focus on the production and sales of solar power as well as the provision of development consultation and technical services of the solar thermal power generation technology; & research, design, development & manufacture of telecommunications & technological products, production of radio frequency coaxial cables for mobile communications & mobile communications systems exchange equipment. It has three segments: Integrated circuits & digital technology, New energy & services, & Telecommunications.
65GF Score
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