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Lingyi Itech (Guangdong) Co (HKSE:01688) 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.
Lingyi Itech (Guangdong) Co Operating Margin % Related Terms
Lingyi Itech (Guangdong) 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.
Lingyi Itech (Guangdong) Co Operating Margin % Chart
HKSE:01688 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Lingyi Itech (Guangdong) 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.
Lingyi Itech (Guangdong) Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Lingyi Itech (Guangdong) Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lingyi Itech (Guangdong) Co's Operating Margin % falls into.
Lingyi Itech (Guangdong) 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.
Lingyi Itech (Guangdong) Co'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.
Lingyi Itech (Guangdong) Co (HKSE:01688) has a Operating Margin % of 6.63% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Lingyi Itech (Guangdong) Co and its competitors. This is 31% below median its historical median of 9.57. Over the past decade, Lingyi Itech (Guangdong) Co's Operating Margin % has ranged from 3.35 to 23.35. According to the industry distribution chart, Lingyi Itech (Guangdong) Co ranks #902 out of 2475 companies in the Hardware industry, placing it in the top 36.4%.
Is Lingyi Itech (Guangdong) Co's Operating Margin % too high?
Lingyi Itech (Guangdong) Co's current Operating Margin % of 6.63% is 31% below median its 10-year median of 9.57. Over the past 10 years, this metric has ranged from a low of 3.35 to a high of 23.35. The Hardware industry median Operating Margin % is 3.89. Lingyi Itech (Guangdong) Co's value of 6.63% is 70.4% above this industry median. Based on the distribution chart, Lingyi Itech (Guangdong) Co ranks #902 out of 2475 companies in the Hardware industry, which is above the industry midpoint. Overall, Lingyi Itech (Guangdong) Co has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lingyi Itech (Guangdong) Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Lingyi Itech (Guangdong) Co ranks #902 out of 2475 companies for Operating Margin %. This puts Lingyi Itech (Guangdong) Co in the upper half of its industry. The industry median Operating Margin % is 3.89. Lingyi Itech (Guangdong) Co's value of 6.63% is 70.4% above this benchmark. Historically, Lingyi Itech (Guangdong) Co's own Operating Margin % has ranged from 3.35 to 23.35 over the past decade. While the company's 10-year median is 9.57 vs. the industry median of 3.89, Lingyi Itech (Guangdong) Co 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 3.89, based on 2,475 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. Lingyi Itech (Guangdong) Co's current Operating Margin % of 6.63% is 70.4% 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 Lingyi Itech (Guangdong) Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lingyi Itech (Guangdong) Co's current Operating Margin % is 6.63%, which is 31% below median its own 10-year median of 9.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lingyi Itech (Guangdong) Co stock overvalued right now?
Based on GuruFocus' analysis, Lingyi Itech (Guangdong) Co (HKSE:01688) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$5.34, compared to a current price of HK$6.17 — trading 15.5% above its estimated fair value. The current Operating Margin % is 6.63%, which is 31% below median its 10-year median of 9.57 and 70.4% above the Hardware industry median of 3.89. Lingyi Itech (Guangdong) Co's overall GF Score™ is 68/100 with 3 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 Lingyi Itech (Guangdong) Co (HKSE:01688), the current Operating Margin % is 6.63% as of Mar. 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 Lingyi Itech (Guangdong) Co (HKSE:01688) Overvalued in 2026?
Based on GuruFocus' analysis, Lingyi Itech (Guangdong) Co stock appears to be overvalued.
The current stock price of HK$6.17 is trading 15.5% above its estimated GF Value™ of HK$5.34.
GuruFocus considers Lingyi Itech (Guangdong) Co to be Modestly Overvalued.
Key valuation signals for HKSE:01688:
Operating Margin %: 6.63% (31% below median its 10-year median of 9.57)
GF Value™: HK$5.34 vs. price of HK$6.17 (15.5% above fair value)
Industry Position: 70.4% above the Hardware median (#902 of 2475)
No single metric tells the full story. See the HKSE:01688 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lingyi Itech (Guangdong) Co Ltd is engaged in the manufacturing of precision functional components, structural modules, and intelligent assembly solutions for the consumer electronics, automotive, and energy storage industries. The company operates three segments. The AI Terminal segment covers AI-powered mobile phones, folding-screen devices, PCs, tablets, display solutions, battery systems, thermal management, AI glasses, XR wearables, sensors, robotics, and related hardware. The Automotive and Low-Altitude Economy segment includes battery structural parts, brake modules, lidar, electronic steering systems, and carbon fiber products. The Other segment focuses on clean energy and photovoltaic storage, including micro inverters, outdoor power solutions, and related products.
68GF Score
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