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Huayu Expressway Group (HKSE:01823) 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.
Huayu Expressway Group Operating Margin % Related Terms
Huayu Expressway Group Operating Margin % Historical Data
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The historical data trend for Huayu Expressway Group'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.
Huayu Expressway Group Operating Margin % Competitor Comparison
For the Infrastructure Operations subindustry, Huayu Expressway 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.
Huayu Expressway Group Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Huayu Expressway Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Huayu Expressway Group's Operating Margin % falls into.
Huayu Expressway 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.
Huayu Expressway 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.
Huayu Expressway Group (HKSE:01823) has a Operating Margin % of -24.00% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Huayu Expressway Group and its competitors. According to the industry distribution chart, Huayu Expressway Group ranks #1630 out of 1772 companies in the Construction industry, placing it in the top 92%.
Is Huayu Expressway Group's Operating Margin % too high?
Huayu Expressway Group's current Operating Margin % is -24.00%. Based on the distribution chart, Huayu Expressway Group ranks #1630 out of 1772 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Huayu Expressway Group has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Huayu Expressway Group's Operating Margin % compare to competitors?
According to the Construction industry distribution chart, Huayu Expressway Group ranks #1630 out of 1772 companies for Operating Margin %. This places Huayu Expressway Group in the lower half of its industry. The industry median Operating Margin % is 5.95. 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 Construction company?
The median Operating Margin % among Construction companies is 5.95, based on 1,772 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. 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 Huayu Expressway Group and its competitors. For the Construction industry, the median Operating Margin % is 5.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huayu Expressway Group's current Operating Margin % is -24.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huayu Expressway Group stock overvalued right now?
Based on GuruFocus' analysis, Huayu Expressway Group (HKSE:01823) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.33, compared to a current price of HK$1.30 — trading 292.4% above its estimated fair value. The current Operating Margin % is -24.00%. Huayu Expressway Group's overall GF Score™ is 39/100 with 7 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 Huayu Expressway Group (HKSE:01823), the current Operating Margin % is -24.00% 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 Huayu Expressway Group (HKSE:01823) Overvalued in 2026?
Based on GuruFocus' analysis, Huayu Expressway Group stock appears to be overvalued.
The current stock price of HK$1.30 is trading 292.4% above its estimated GF Value™ of HK$0.33.
GuruFocus considers Huayu Expressway Group to be Significantly Overvalued.
Key valuation signals for HKSE:01823:
Operating Margin %: -24.00%
GF Value™: HK$0.33 vs. price of HK$1.30 (292.4% above fair value)
No single metric tells the full story. See the HKSE:01823 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huayu Expressway Group Ltd is principally engaged in the construction, operation and management of the Qing Ping Expressway in the PRC. It also engages in the trading business of liquor and spirits in collaboration with the Kweichow Moutai Group and is the sole distributor of the Huamaojiu (liquor brand), as well as engages in winemaking and its other related businesses. It has two reportable segments Qing Ping Expressway, construction, operation and management of the Qing Ping Expressway; and Liquor and spirits, mainly distribution of Huamaojiu. The majority of the revenue comes from the Liquor and spirits segment. The company has presence in a single geographical region, which is Mainland China.
39GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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