Luye Pharma GroupHKSE:02186 -4.26%81 Operating Margin % is 13.82% as of Dec. 2025, which is 36% below its 10-year median of 21.62. GuruFocus rates HKSE:02186 with a GF Score™ of 81/100 and a GF Value™ of HK$3.14 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 953 Drug Manufacturers companies, Luye Pharma Group ranks better than 81.43% on this metric.
Luye Pharma Group Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Luye Pharma Group's Operating Margin % or its related term are showing as below:
HKSE:02186'
s Operating Margin % Range Over the Past 10 Years
Min: 5.44 Med: 21.62 Max: 31.35
Current: 19.87
HKSE:02186's Operating Margin % is ranked better than 81.43% of 953
companies
in the Drug Manufacturers industry
Industry Median: 7.59
vs HKSE:02186: 19.87
Luye Pharma Group's 5-Year Average Operating Margin % Growth Rate was 11.00% per year.
Luye Pharma Group (HKSE:02186) 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.
Luye Pharma Group Operating Margin % Related Terms
Luye Pharma Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Luye Pharma 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.
HKSE:02186 vs ZTS, UTHR: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Luye Pharma 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.
Luye Pharma Group Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Luye Pharma Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Luye Pharma Group'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.
Luye Pharma 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.
Luye Pharma Group (HKSE:02186) has a Operating Margin % of 13.82% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Luye Pharma Group and its competitors. This is 36% below median its historical median of 21.62. Over the past decade, Luye Pharma Group's Operating Margin % has ranged from 5.44 to 31.35. According to the industry distribution chart, Luye Pharma Group ranks #177 out of 953 companies in the Drug Manufacturers industry, placing it in the top 18.6%.
Is Luye Pharma Group's Operating Margin % too high?
Luye Pharma Group's current Operating Margin % of 13.82% is 36% below median its 10-year median of 21.62. Over the past 10 years, this metric has ranged from a low of 5.44 to a high of 31.35. The Drug Manufacturers industry median Operating Margin % is 7.59. Luye Pharma Group's value of 13.82% is 82.1% above this industry median. Based on the distribution chart, Luye Pharma Group ranks #177 out of 953 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Luye Pharma Group has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Luye Pharma Group's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Luye Pharma Group ranks #177 out of 953 companies for Operating Margin %. This places Luye Pharma Group in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.59. Luye Pharma Group's value of 13.82% is 82.1% above this benchmark. Historically, Luye Pharma Group's own Operating Margin % has ranged from 5.44 to 31.35 over the past decade. While the company's 10-year median is 21.62 vs. the industry median of 7.59, Luye Pharma Group 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.59, based on 953 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. Luye Pharma Group's current Operating Margin % of 13.82% is 82.1% 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 Luye Pharma Group and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luye Pharma Group's current Operating Margin % is 13.82%, which is 36% below median its own 10-year median of 21.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luye Pharma Group stock overvalued right now?
Based on GuruFocus' analysis, Luye Pharma Group (HKSE:02186) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.14, compared to a current price of HK$1.80 — trading 42.7% below its estimated fair value. The current Operating Margin % is 13.82%, which is 36% below median its 10-year median of 21.62 and 82.1% above the Drug Manufacturers industry median of 7.59. Luye Pharma Group's overall GF Score™ is 81/100 with 5 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 Luye Pharma Group (HKSE:02186), the current Operating Margin % is 13.82% 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 Luye Pharma Group (HKSE:02186) Overvalued in 2026?
Based on GuruFocus' analysis, Luye Pharma Group stock appears to be undervalued.
The current stock price of HK$1.80 is trading 42.7% below its estimated GF Value™ of HK$3.14.
GuruFocus considers Luye Pharma Group to be Possible Value Trap.
Key valuation signals for HKSE:02186:
Operating Margin %: 13.82% (36% below median its 10-year median of 21.62)
GF Value™: HK$3.14 vs. price of HK$1.80 (42.7% below fair value)
Industry Position: 82.1% above the Drug Manufacturers median (#177 of 953)
No single metric tells the full story. See the HKSE:02186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luye Pharma Group Ltd is a China-based drug manufacturer that focuses on development, production, marketing and sale of pharmaceutical products. The company develops drugs related to diagnosing and treating cancer, the cardiovascular system, the alimentary tract, and the central nervous system. The company develops drugs for world-wide use in Asia, Europe, and the United States. The Group organizes its business segments by type of products. Oncology drugs, which derives maximum revenue; Cardiovascular system drugs; Alimentary tract and metabolism drugs; Central nervous system drugs; and others. Geographically, the group derives maximum revenue from Chinese Mainland, while it also has its presence in Asia (other than the Chinese mainland), European Union, and Other countries.
81GF Score
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