New Concepts Holdings Ltd has never been profitable in the past 3 years. It lost money every year.
New Concepts Holdings (HKSE:02221) 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.
New Concepts Holdings Operating Margin % Related Terms
New Concepts Holdings Operating Margin % Historical Data
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The historical data trend for New Concepts Holdings'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:02221 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, New Concepts Holdings'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.
New Concepts Holdings Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, New Concepts Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where New Concepts Holdings's Operating Margin % falls into.
New Concepts 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.
New Concepts Holdings's Operating Margin % for the fiscal year that ended in Mar. 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.
New Concepts Holdings (HKSE:02221) has a Operating Margin % of -5.37% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on New Concepts Holdings and its competitors. According to the industry distribution chart, New Concepts Holdings ranks #1514 out of 1762 companies in the Construction industry, placing it in the top 85.9%.
Is New Concepts Holdings' Operating Margin % too high?
New Concepts Holdings' current Operating Margin % is -5.37%. Based on the distribution chart, New Concepts Holdings ranks #1514 out of 1762 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, New Concepts Holdings has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does New Concepts Holdings' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, New Concepts Holdings ranks #1514 out of 1762 companies for Operating Margin %. This places New Concepts Holdings in the lower half of its industry. The industry median Operating Margin % is 5.89. 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 5.89, based on 1,762 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 New Concepts Holdings and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Concepts Holdings's current Operating Margin % is -5.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Concepts Holdings stock overvalued right now?
Based on GuruFocus' analysis, New Concepts Holdings (HKSE:02221) is currently considered Possible Value Trap. The stock's GF Value™ is HK$2.68, compared to a current price of HK$0.65 — trading 75.7% below its estimated fair value. The current Operating Margin % is -5.37%. New Concepts Holdings' overall GF Score™ is 52/100 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 New Concepts Holdings (HKSE:02221), the current Operating Margin % is -5.37% as of Sep. 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 New Concepts Holdings (HKSE:02221) Overvalued in 2026?
Based on GuruFocus' analysis, New Concepts Holdings stock appears to be undervalued.
The current stock price of HK$0.65 is trading 75.7% below its estimated GF Value™ of HK$2.68.
GuruFocus considers New Concepts Holdings to be Possible Value Trap.
Key valuation signals for HKSE:02221:
Operating Margin %: -5.37%
GF Value™: HK$2.68 vs. price of HK$0.65 (75.7% below fair value)
No single metric tells the full story. See the HKSE:02221 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Concepts Holdings Ltd is an investment holding company, which majorly focuses on foundation works, civil engineering, and general building services, and environmental protection projects, including kitchen waste treatment, environmental park development, and new energy materials in Mainland China. The company's operating segment includes Construction works and Environmental protection services. It generates maximum revenue from the Construction works segment. The Construction work segment is engaged in the provision of foundation works, civil engineering works, and general building works in Hong Kong. Geographically, it derives a majority of its revenue from Hong Kong and also has a presence in Mainland China.
52GF 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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