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Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) 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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Operating Margin % Related Terms
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings 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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Operating Margin % Chart
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Annual Data
* 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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Operating Margin % vs Steel Industry
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings 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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) has a Operating Margin % of 5.85% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Chu Kong Petroleum and Natural Gas Steel Pipe Holdings and its competitors. According to the industry distribution chart, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ranks #175 out of 611 companies in the Steel industry, placing it in the top 28.6%.
Is Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' Operating Margin % too high?
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' current Operating Margin % is 5.85%. The Steel industry median Operating Margin % is 3.02. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' value of 5.85% is 93.7% above this industry median. Based on the distribution chart, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ranks #175 out of 611 companies in the Steel industry, which is above the industry midpoint. Overall, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings has a GF Score™ of 46/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ranks #175 out of 611 companies for Operating Margin %. This puts Chu Kong Petroleum and Natural Gas Steel Pipe Holdings in the upper half of its industry. The industry median Operating Margin % is 3.02. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' value of 5.85% is 93.7% 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 Steel company?
The median Operating Margin % among Steel companies is 3.02, 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. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings's current Operating Margin % of 5.85% is 93.7% 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings and its competitors. For the Steel industry, the median Operating Margin % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings's current Operating Margin % is 5.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chu Kong Petroleum and Natural Gas Steel Pipe Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.22 — trading 27.1% above its estimated fair value. The current Operating Margin % is 5.85% and 93.7% above the Steel industry median of 3.02. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' overall GF Score™ is 46/100 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938), the current Operating Margin % is 5.85% 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) Overvalued in 2026?
Based on GuruFocus' analysis, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings stock appears to be overvalued.
The current stock price of HK$0.22 is trading 27.1% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Chu Kong Petroleum and Natural Gas Steel Pipe Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:01938:
Operating Margin %: 5.85%
GF Value™: HK$0.17 vs. price of HK$0.22 (27.1% above fair value)
Industry Position: 93.7% above the Steel median (#175 of 611)
No single metric tells the full story. See the HKSE:01938 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd operates in the steel pipe business. The group is involved in its key revenue-generating business which is to manufacture and sell welded steel pipes and the provision of related manufacturing services. The group's steel pipes are mainly used for energy transmission including oil and gas transmission pipelines, deep-sea pipelines, city gas networks, petrochemicals, mining, infrastructure construction, offshore engineering, steel structures, and water utilities industries. Further, it is also involved in the development of properties for sale; and property investment activities. The group has a business presence in Mainland China and other countries, of which maximum revenue is derived from Africa.
46GF Score
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