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Yunnan Energy International Co (HKSE:01298) 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.
Yunnan Energy International Co Operating Margin % Related Terms
Yunnan Energy International Co 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.
Yunnan Energy International Co Operating Margin % Chart
HKSE:01298 vs GRMN, COHR, KEYS: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Yunnan Energy International 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.
Yunnan Energy International Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Yunnan Energy International Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Yunnan Energy International Co's Operating Margin % falls into.
Yunnan Energy International Co 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.
* 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.
Yunnan Energy International Co (HKSE:01298) has a Operating Margin % of 5.20% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Yunnan Energy International Co and its competitors. According to the industry distribution chart, Yunnan Energy International Co ranks #1611 out of 2476 companies in the Hardware industry, placing it in the top 65.1%.
Is Yunnan Energy International Co's Operating Margin % too high?
Yunnan Energy International Co's current Operating Margin % is 5.20%. The Hardware industry median Operating Margin % is 3.93. Yunnan Energy International Co's value of 5.20% is 32.5% above this industry median. Based on the distribution chart, Yunnan Energy International Co ranks #1611 out of 2476 companies in the Hardware industry, which is below the industry midpoint. Overall, Yunnan Energy International Co has a GF Score™ of 45/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Yunnan Energy International Co's Operating Margin % compare to GRMN and COHR?
According to the Hardware industry distribution chart, Yunnan Energy International Co ranks #1611 out of 2476 companies for Operating Margin %. This places Yunnan Energy International Co in the lower half of its industry. The industry median Operating Margin % is 3.93. Yunnan Energy International Co's value of 5.20% is 32.5% above this benchmark. 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 3.93, 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. Yunnan Energy International Co's current Operating Margin % of 5.20% is 32.5% 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 Yunnan Energy International Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yunnan Energy International Co's current Operating Margin % is 5.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yunnan Energy International Co stock overvalued right now?
Based on GuruFocus' analysis, Yunnan Energy International Co (HKSE:01298) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.91, compared to a current price of HK$1.12 — trading 22.5% above its estimated fair value. The current Operating Margin % is 5.20% and 32.5% above the Hardware industry median of 3.93. Yunnan Energy International Co's overall GF Score™ is 45/100 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 Yunnan Energy International Co (HKSE:01298), the current Operating Margin % is 5.20% as of Jun. 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 Yunnan Energy International Co (HKSE:01298) Overvalued in 2026?
Based on GuruFocus' analysis, Yunnan Energy International Co stock appears to be overvalued.
The current stock price of HK$1.12 is trading 22.5% above its estimated GF Value™ of HK$0.91.
GuruFocus considers Yunnan Energy International Co to be Modestly Overvalued.
Key valuation signals for HKSE:01298:
Operating Margin %: 5.20%
GF Value™: HK$0.91 vs. price of HK$1.12 (22.5% above fair value)
Industry Position: 32.5% above the Hardware median (#1611 of 2476)
No single metric tells the full story. See the HKSE:01298 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yunnan Energy International Co Ltd is a China based company operates analytical instruments, life science equipment, and laboratory instruments. The business functions through two operating segment; the Distribution Business segment which is engaged in the provision of distribution and after-sales services for different analytical instruments, life science and general laboratory instruments; and the Supply Chain Business segment which is engaged in the trading of diversified industrial and consumer products. The company's instruments comprise of chromatographs, spectrophotometers, electronic microscopes, life science and general laboratory instruments, with specialized and customized hardware and software, to provide solutions scientific analysis and testing for variety of businesses.
45GF Score
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