Dongguang ChemicalHKSE:01702 78 Operating Margin % is 5.36% as of Dec. 2025, which is 39% below its 10-year median of 8.85. GuruFocus rates HKSE:01702 with a GF Score™ of 78/100 and a GF Value™ of HK$1.59 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,574 Chemicals companies, Dongguang Chemical ranks worse than 50.64% on this metric.
Dongguang Chemical (HKSE:01702) 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.
Dongguang Chemical Operating Margin % Related Terms
Dongguang Chemical Operating Margin % Historical Data
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The historical data trend for Dongguang Chemical'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.
For the Chemicals subindustry, Dongguang Chemical'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.
Dongguang Chemical Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Dongguang Chemical's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dongguang Chemical'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.
Dongguang Chemical'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.
Dongguang Chemical (HKSE:01702) has a Operating Margin % of 5.36% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Dongguang Chemical and its competitors. This is 39% below median its historical median of 8.85. Over the past decade, Dongguang Chemical's Operating Margin % has ranged from 3.81 to 13.71. According to the industry distribution chart, Dongguang Chemical ranks #797 out of 1574 companies in the Chemicals industry, placing it in the top 50.6%.
Is Dongguang Chemical's Operating Margin % too high?
Dongguang Chemical's current Operating Margin % of 5.36% is 39% below median its 10-year median of 8.85. Over the past 10 years, this metric has ranged from a low of 3.81 to a high of 13.71. The Chemicals industry median Operating Margin % is 6.03. Dongguang Chemical's value of 5.36% is 11% below this industry median. Based on the distribution chart, Dongguang Chemical ranks #797 out of 1574 companies in the Chemicals industry, which is below the industry midpoint. Overall, Dongguang Chemical has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dongguang Chemical's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Dongguang Chemical ranks #797 out of 1574 companies for Operating Margin %. This places Dongguang Chemical in the lower half of its industry. The industry median Operating Margin % is 6.03. Dongguang Chemical's value of 5.36% is 11% below this benchmark. Historically, Dongguang Chemical's own Operating Margin % has ranged from 3.81 to 13.71 over the past decade. While the company's 10-year median is 8.85 vs. the industry median of 6.03, Dongguang Chemical has consistently been below 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,574 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. Dongguang Chemical's current Operating Margin % of 5.36% is 11% below 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 Dongguang Chemical and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dongguang Chemical's current Operating Margin % is 5.36%, which is 39% below median its own 10-year median of 8.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dongguang Chemical stock overvalued right now?
Based on GuruFocus' analysis, Dongguang Chemical (HKSE:01702) is currently considered Fairly Valued. The stock's GF Value™ is HK$1.59, compared to a current price of HK$1.59 — trading right at its estimated fair value. The current Operating Margin % is 5.36%, which is 39% below median its 10-year median of 8.85 and 11% below the Chemicals industry median of 6.03. Dongguang Chemical's overall GF Score™ is 78/100 with 4 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 Dongguang Chemical (HKSE:01702), the current Operating Margin % is 5.36% 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 Dongguang Chemical (HKSE:01702) Overvalued in 2026?
Based on GuruFocus' analysis, Dongguang Chemical stock appears to be undervalued.
The current stock price of HK$1.59 is trading 0% below its estimated GF Value™ of HK$1.59.
GuruFocus considers Dongguang Chemical to be Fairly Valued.
Key valuation signals for HKSE:01702:
Operating Margin %: 5.36% (39% below median its 10-year median of 8.85)
GF Value™: HK$1.59 vs. price of HK$1.59 (0% below fair value)
Industry Position: 11% below the Chemicals median (#797 of 1574)
No single metric tells the full story. See the HKSE:01702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dongguang Chemical Ltd is a coal-based urea producer. It produces and sells urea. Urea is the Group's main product, and the application of urea can be broadly categorised into agricultural and industrial uses. It is widely used as a source of nitrogen in fertilisers, and it has wide industrial applications, such as the production of adhesives, coatings, plastics, and cosmetics. The Group also produces and sells by-products of urea, including vehicle urea solution, methanol, liquid carbon dioxide, liquefied natural gas, liquid ammonia, and compound fertiliser. The Group has two active production plants with production technologies located in Dongguang County of Cangzhou City, Hebei Province.
78GF Score
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