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Kinetic Development GroupHKSE:01277 +2.92%79 Operating Margin % is 23.65% as of Dec. 2025, which is 44% below its 10-year median of 42.52. GuruFocus rates HKSE:01277 with a GF Score™ of 79/100 and a GF Value™ of HK$1.26 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 131 Other Energy Sources companies, Kinetic Development Group ranks better than 93.89% on this metric.
Kinetic Development Group Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6.8%.
The historical rank and industry rank for Kinetic Development Group's Operating Margin % or its related term are showing as below:
HKSE:01277'
s Operating Margin % Range Over the Past 10 Years
Min: 23.56 Med: 42.52 Max: 63.4
Current: 29.21
HKSE:01277's Operating Margin % is ranked better than 93.89% of 131
companies
in the Other Energy Sources industry
Industry Median: 4.67
vs HKSE:01277: 29.21
Kinetic Development Group (HKSE:01277) 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.
Kinetic Development Group Operating Margin % Related Terms
Kinetic Development Group 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.
Kinetic Development Group Operating Margin % Chart
Kinetic Development Group Operating Margin % Competitor Comparison
For the Thermal Coal subindustry, Kinetic Development Group'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.
Kinetic Development Group Operating Margin % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Kinetic Development Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kinetic Development Group's Operating Margin % falls into.
Kinetic Development Group 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.
Kinetic Development Group'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.
Kinetic Development Group (HKSE:01277) has a Operating Margin % of 23.65% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Kinetic Development Group and its competitors. This is 44% below median its historical median of 42.52. Over the past decade, Kinetic Development Group's Operating Margin % has ranged from 23.56 to 63.40. According to the industry distribution chart, Kinetic Development Group ranks #8 out of 131 companies in the Other Energy Sources industry, placing it in the top 6.1%.
Is Kinetic Development Group's Operating Margin % too high?
Kinetic Development Group's current Operating Margin % of 23.65% is 44% below median its 10-year median of 42.52. Over the past 10 years, this metric has ranged from a low of 23.56 to a high of 63.40. The Other Energy Sources industry median Operating Margin % is 4.67. Kinetic Development Group's value of 23.65% is 406.4% above this industry median. Based on the distribution chart, Kinetic Development Group ranks #8 out of 131 companies in the Other Energy Sources industry, which is in the top quartile — a strong position relative to peers. Overall, Kinetic Development Group has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kinetic Development Group's Operating Margin % compare to competitors?
According to the Other Energy Sources industry distribution chart, Kinetic Development Group ranks #8 out of 131 companies for Operating Margin %. This places Kinetic Development Group in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.67. Kinetic Development Group's value of 23.65% is 406.4% above this benchmark. Historically, Kinetic Development Group's own Operating Margin % has ranged from 23.56 to 63.40 over the past decade. While the company's 10-year median is 42.52 vs. the industry median of 4.67, Kinetic Development Group 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 an Other Energy Sources company?
The median Operating Margin % among Other Energy Sources companies is 4.67, based on 131 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. Kinetic Development Group's current Operating Margin % of 23.65% is 406.4% 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 Kinetic Development Group and its competitors. For the Other Energy Sources industry, the median Operating Margin % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kinetic Development Group's current Operating Margin % is 23.65%, which is 44% below median its own 10-year median of 42.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kinetic Development Group stock overvalued right now?
Based on GuruFocus' analysis, Kinetic Development Group (HKSE:01277) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.26, compared to a current price of HK$2.12 — trading 67.9% above its estimated fair value. The current Operating Margin % is 23.65%, which is 44% below median its 10-year median of 42.52 and 406.4% above the Other Energy Sources industry median of 4.67. Kinetic Development Group's overall GF Score™ is 79/100 with 9 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 Kinetic Development Group (HKSE:01277), the current Operating Margin % is 23.65% 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 Kinetic Development Group (HKSE:01277) Overvalued in 2026?
Based on GuruFocus' analysis, Kinetic Development Group stock appears to be overvalued.
The current stock price of HK$2.12 is trading 67.9% above its estimated GF Value™ of HK$1.26.
GuruFocus considers Kinetic Development Group to be Significantly Overvalued.
Key valuation signals for HKSE:01277:
Operating Margin %: 23.65% (44% below median its 10-year median of 42.52)
GF Value™: HK$1.26 vs. price of HK$2.12 (67.9% above fair value)
Industry Position: 406.4% above the Other Energy Sources median (#8 of 131)
No single metric tells the full story. See the HKSE:01277 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kinetic Development Group Ltd is engaged in the extraction and sales of coal products. It also operates in other activities, which include coal production and washing, coal loading and transportation, and coal trading. Its customer base includes large-scale state-owned enterprises, trading firms, and terminal power plants. The company focuses on the development and operation of the Dafanpu Coal Mine situated in Erdos City, the Xiaojia loading station, and its associated rail spur lines. The reportable segments of the company are the coal mining segment, the real estate and property management segment, and the other segment, which mainly includes agriculture and animal husbandry, and the cigar and tobacco.
79GF Score
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