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Tang Palace (China) HoldingsHKSE:01181 Operating Margin % is -0.81% as of Dec. 2025. The stock has 7 warning signs investors should review. Among 361 Restaurants companies, Tang Palace (China) Holdings ranks worse than 71.19% 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.
Tang Palace (China) Holdings Operating Margin % Related Terms
Tang Palace (China) Holdings 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.
HKSE:01181 vs MCD, SBUX, YUM: Operating Margin % Comparison
For the Restaurants subindustry, Tang Palace (China) Holdings'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.
Tang Palace (China) Holdings Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Tang Palace (China) Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tang Palace (China) Holdings'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.
* 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.
Tang Palace (China) Holdings (HKSE:01181) has a Operating Margin % of -0.81% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tang Palace (China) Holdings and its competitors. Over the past decade, Tang Palace (China) Holdings' Operating Margin % has ranged from 0.72 to 23.39. According to the industry distribution chart, Tang Palace (China) Holdings ranks #257 out of 361 companies in the Restaurants industry, placing it in the top 71.2%.
Is Tang Palace (China) Holdings' Operating Margin % too high?
Tang Palace (China) Holdings' current Operating Margin % is -0.81%. Over the past 10 years, this metric has ranged from a low of 0.72 to a high of 23.39. Based on the distribution chart, Tang Palace (China) Holdings ranks #257 out of 361 companies in the Restaurants industry, which is below the industry midpoint.
How does Tang Palace (China) Holdings' Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Tang Palace (China) Holdings ranks #257 out of 361 companies for Operating Margin %. This places Tang Palace (China) Holdings in the lower half of its industry. The industry median Operating Margin % is 4.49. Historically, Tang Palace (China) Holdings' own Operating Margin % has ranged from 0.72 to 23.39 over the past decade. 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 Restaurants company?
The median Operating Margin % among Restaurants companies is 4.49, based on 361 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 Tang Palace (China) Holdings and its competitors. For the Restaurants industry, the median Operating Margin % is 4.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tang Palace (China) Holdings's current Operating Margin % is -0.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tang Palace (China) Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tang Palace (China) Holdings (HKSE:01181) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.24, compared to a current price of HK$0.10 — trading 58.3% below its estimated fair value. The current Operating Margin % is -0.81%. 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 Tang Palace (China) Holdings (HKSE:01181), the current Operating Margin % is -0.81% 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.
Tang Palace (China) Holdings Ltd is an investment holding company engaged in restaurant operations and food production. The primary production of the group is located in the People's Republic of China. It offers new dishes, seasonal foods, festive celebrations, basic sauces, food ingredients, and casual dining of different regional cuisines. The company has four operating segments - the Southern China region, the Eastern China region, the Northern China region, and the Western China region. The majority of revenue is generated from the Eastern China segment. The company operates restaurants under the brands of Soup Delice, Tang Palace, Tang's Cuisine, Tang Palace Seafood Restaurant, Canton Tea Room, Social Place, Pepper Lunch, and PappaRich.
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