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SMIT HoldingsHKSE:02239 40 Operating Margin % is -48.99% as of Dec. 2025. GuruFocus rates HKSE:02239 with a GF Score™ of 40/100 and a GF Value™ of HK$0.83 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,022 Semiconductors companies, SMIT Holdings ranks worse than 91% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SMIT Holdings's Operating Income for the
six
months ended in Dec. 2025 was HK$-29.1 Mil. SMIT Holdings's Revenue for the
six
months ended in Dec. 2025 was HK$59.5 Mil. Therefore, SMIT Holdings's Operating Margin % for the quarter that ended in Dec. 2025 was -48.99%.
Warning Sign:
SMIT Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -30.8%.
The historical rank and industry rank for SMIT Holdings's Operating Margin % or its related term are showing as below:
HKSE:02239'
s Operating Margin % Range Over the Past 10 Years
Min: -46.47 Med: -16.23 Max: 16.95
Current: -46.46
HKSE:02239's Operating Margin % is ranked worse than 91% of 1022
companies
in the Semiconductors industry
Industry Median: 5.64
vs HKSE:02239: -46.46
SMIT Holdings's 5-Year Average Operating Margin % Growth Rate was -30.80% per year.
SMIT Holdings's Operating Income for the
six
months ended in Dec. 2025 was HK$-29.1 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was HK$-53.4 Mil.
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.
SMIT Holdings Operating Margin % Related Terms
SMIT Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for SMIT 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:02239 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, SMIT 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.
SMIT Holdings Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, SMIT Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SMIT Holdings'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.
SMIT Holdings'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.
SMIT Holdings (HKSE:02239) has a Operating Margin % of -48.99% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on SMIT Holdings and its competitors. According to the industry distribution chart, SMIT Holdings ranks #930 out of 1022 companies in the Semiconductors industry, placing it in the top 91%.
Is SMIT Holdings' Operating Margin % too high?
SMIT Holdings' current Operating Margin % is -48.99%. Based on the distribution chart, SMIT Holdings ranks #930 out of 1022 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, SMIT Holdings has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SMIT Holdings' Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, SMIT Holdings ranks #930 out of 1022 companies for Operating Margin %. This places SMIT Holdings in the lower half of its industry. The industry median Operating Margin % is 5.64. 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.64, based on 1,022 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 SMIT Holdings and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SMIT Holdings's current Operating Margin % is -48.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMIT Holdings stock overvalued right now?
Based on GuruFocus' analysis, SMIT Holdings (HKSE:02239) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.83, compared to a current price of HK$1.36 — trading 63.9% above its estimated fair value. The current Operating Margin % is -48.99%. SMIT Holdings' overall GF Score™ is 40/100 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 SMIT Holdings (HKSE:02239), the current Operating Margin % is -48.99% 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 SMIT Holdings (HKSE:02239) Overvalued in 2026?
Based on GuruFocus' analysis, SMIT Holdings stock appears to be overvalued.
The current stock price of HK$1.36 is trading 63.9% above its estimated GF Value™ of HK$0.83.
GuruFocus considers SMIT Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:02239:
Operating Margin %: -48.99%
GF Value™: HK$0.83 vs. price of HK$1.36 (63.9% above fair value)
No single metric tells the full story. See the HKSE:02239 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SMIT Holdings Ltd is an investment holding company. The company is principally engaged in the development and sales of conditional access modules; research, development and sales of smart sensing-oriented products and solution; and provision of integrated circuit solutions. The company has four reportable segments: CAM, Intelligent Sense, Investments, and Other businesses. The company generates the majority of its revenue from the CAM segment is engaged in the development and sales of security products that enable secure distribution and delivery of digital content to television. Geographically, the company generates the majority of its revenue from Europe, followed by China (including Hong Kong) and Others.
40GF Score
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