Aowei HoldingHKSE:01370 +5.04%32 Operating Margin % is 10.42% as of Dec. 2025, which is 23% below its 10-year median of 13.58. GuruFocus rates HKSE:01370 with a GF Score™ of 32/100 and a GF Value™ of HK$0.47 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 611 Steel companies, Aowei Holding ranks worse than 78.89% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Aowei Holding's Operating Income for the
six
months ended in Dec. 2025 was HK$41.4 Mil. Aowei Holding's Revenue for the
six
months ended in Dec. 2025 was HK$397.3 Mil. Therefore, Aowei Holding's Operating Margin % for the quarter that ended in Dec. 2025 was 10.42%.
The historical rank and industry rank for Aowei Holding's Operating Margin % or its related term are showing as below:
HKSE:01370'
s Operating Margin % Range Over the Past 10 Years
Min: -7.13 Med: 13.58 Max: 25.74
Current: -1.42
HKSE:01370's Operating Margin % is ranked worse than 78.89% of 611
companies
in the Steel industry
Industry Median: 2.99
vs HKSE:01370: -1.42
Aowei Holding's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Aowei Holding's Operating Income for the
six
months ended in Dec. 2025 was HK$41.4 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was HK$-9.8 Mil.
Warning Sign:
Aowei Holding Ltd has never been profitable in the past 3 years. It lost money every year.
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.
Aowei Holding Operating Margin % Related Terms
Aowei Holding Operating Margin % Historical Data
* Premium members only.
The historical data trend for Aowei Holding'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:01370 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Aowei Holding'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.
Aowei Holding Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Aowei Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Aowei Holding'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.
Aowei Holding'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.
Aowei Holding (HKSE:01370) has a Operating Margin % of 10.42% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Aowei Holding and its competitors. This is 23% below median its historical median of 13.58. According to the industry distribution chart, Aowei Holding ranks #482 out of 611 companies in the Steel industry, placing it in the top 78.9%.
Is Aowei Holding's Operating Margin % too high?
Aowei Holding's current Operating Margin % of 10.42% is 23% below median its 10-year median of 13.58. The Steel industry median Operating Margin % is 2.99. Aowei Holding's value of 10.42% is 248.5% above this industry median. Based on the distribution chart, Aowei Holding ranks #482 out of 611 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Aowei Holding has a GF Score™ of 32/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Aowei Holding's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Aowei Holding ranks #482 out of 611 companies for Operating Margin %. This places Aowei Holding in the lower half of its industry. The industry median Operating Margin % is 2.99. Aowei Holding's value of 10.42% is 248.5% above this benchmark. While the company's 10-year median is 13.58 vs. the industry median of 2.99, Aowei Holding 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 611 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. Aowei Holding's current Operating Margin % of 10.42% is 248.5% 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 Aowei Holding and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aowei Holding's current Operating Margin % is 10.42%, which is 23% below median its own 10-year median of 13.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aowei Holding stock overvalued right now?
Based on GuruFocus' analysis, Aowei Holding (HKSE:01370) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.47, compared to a current price of HK$0.13 — trading 73.4% below its estimated fair value. The current Operating Margin % is 10.42%, which is 23% below median its 10-year median of 13.58 and 248.5% above the Steel industry median of 2.99. Aowei Holding's overall GF Score™ is 32/100 with 6 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 Aowei Holding (HKSE:01370), the current Operating Margin % is 10.42% 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 Aowei Holding (HKSE:01370) Overvalued in 2026?
Based on GuruFocus' analysis, Aowei Holding stock appears to be undervalued.
The current stock price of HK$0.13 is trading 73.4% below its estimated GF Value™ of HK$0.47.
GuruFocus considers Aowei Holding to be Possible Value Trap.
Key valuation signals for HKSE:01370:
Operating Margin %: 10.42% (23% below median its 10-year median of 13.58)
GF Value™: HK$0.47 vs. price of HK$0.13 (73.4% below fair value)
Industry Position: 248.5% above the Steel median (#482 of 611)
No single metric tells the full story. See the HKSE:01370 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aowei Holding Ltd is an investment holding company. The Company and its subsidiaries are principally engaged in (i) the exploration, mining, processing and trading of iron ore products and products including iron ores, preliminary concentrates and iron ore concentrates; (ii) the production and sales business of the green construction materials construction sand and gravel materials by recycling tailings and solid wastes in the People's Republic of China. Its only reportable and operating segment is the mining segment. Geographically, all of the company's revenue is derived from the PRC.
32GF Score
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