Swang Chai ChuanHKSE:02321 66 Operating Margin % is 3.89% as of Dec. 2025, which is 16% below its 10-year median of 4.61. GuruFocus rates HKSE:02321 with a GF Score™ of 66/100 and a GF Value™ of HK$0.44 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 310 Retail - Defensive companies, Swang Chai Chuan ranks better than 62.58% on this metric.
Swang Chai Chuan Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -5.7%.
The historical rank and industry rank for Swang Chai Chuan's Operating Margin % or its related term are showing as below:
HKSE:02321'
s Operating Margin % Range Over the Past 10 Years
Min: 3.81 Med: 4.61 Max: 5.7
Current: 4.29
HKSE:02321's Operating Margin % is ranked better than 62.58% of 310
companies
in the Retail - Defensive industry
Industry Median: 3.32
vs HKSE:02321: 4.29
Swang Chai Chuan's 5-Year Average Operating Margin % Growth Rate was -5.70% per year.
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.
Swang Chai Chuan Operating Margin % Related Terms
Swang Chai Chuan Operating Margin % Historical Data
* Premium members only.
The historical data trend for Swang Chai Chuan'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.
For the Grocery Stores subindustry, Swang Chai Chuan'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.
Swang Chai Chuan Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Swang Chai Chuan's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Swang Chai Chuan'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.
Swang Chai Chuan'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.
Swang Chai Chuan (HKSE:02321) has a Operating Margin % of 3.89% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Swang Chai Chuan and its competitors. This is 16% below median its historical median of 4.61. Over the past decade, Swang Chai Chuan's Operating Margin % has ranged from 3.81 to 5.70. According to the industry distribution chart, Swang Chai Chuan ranks #116 out of 310 companies in the Retail - Defensive industry, placing it in the top 37.4%.
Is Swang Chai Chuan's Operating Margin % too high?
Swang Chai Chuan's current Operating Margin % of 3.89% is 16% below median its 10-year median of 4.61. Over the past 10 years, this metric has ranged from a low of 3.81 to a high of 5.70. The Retail - Defensive industry median Operating Margin % is 3.32. Swang Chai Chuan's value of 3.89% is 17.2% above this industry median. Based on the distribution chart, Swang Chai Chuan ranks #116 out of 310 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Swang Chai Chuan has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Swang Chai Chuan's Operating Margin % compare to KR?
According to the Retail - Defensive industry distribution chart, Swang Chai Chuan ranks #116 out of 310 companies for Operating Margin %. This puts Swang Chai Chuan in the upper half of its industry. The industry median Operating Margin % is 3.32. Swang Chai Chuan's value of 3.89% is 17.2% above this benchmark. Historically, Swang Chai Chuan's own Operating Margin % has ranged from 3.81 to 5.70 over the past decade. While the company's 10-year median is 4.61 vs. the industry median of 3.32, Swang Chai Chuan 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 Retail - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.32, based on 310 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. Swang Chai Chuan's current Operating Margin % of 3.89% is 17.2% 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 Swang Chai Chuan and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Swang Chai Chuan's current Operating Margin % is 3.89%, which is 16% below median its own 10-year median of 4.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Swang Chai Chuan stock overvalued right now?
Based on GuruFocus' analysis, Swang Chai Chuan (HKSE:02321) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.44, compared to a current price of HK$0.52 — trading 18.2% above its estimated fair value. The current Operating Margin % is 3.89%, which is 16% below median its 10-year median of 4.61 and 17.2% above the Retail - Defensive industry median of 3.32. Swang Chai Chuan's overall GF Score™ is 66/100 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 Swang Chai Chuan (HKSE:02321), the current Operating Margin % is 3.89% 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 Swang Chai Chuan (HKSE:02321) Overvalued in 2026?
Based on GuruFocus' analysis, Swang Chai Chuan stock appears to be overvalued.
The current stock price of HK$0.52 is trading 18.2% above its estimated GF Value™ of HK$0.44.
GuruFocus considers Swang Chai Chuan to be Modestly Overvalued.
Key valuation signals for HKSE:02321:
Operating Margin %: 3.89% (16% below median its 10-year median of 4.61)
GF Value™: HK$0.44 vs. price of HK$0.52 (18.2% above fair value)
Industry Position: 17.2% above the Retail - Defensive median (#116 of 310)
No single metric tells the full story. See the HKSE:02321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swang Chai Chuan Ltd is an investment holding company and its subsidiaries are principally engaged in distribution and sales of food and beverages (F&B) and provision of logistics, warehousing and other services in Malaysia. The company has one reportable segment. The company's brands are CED, Mega Food, Mega Fresh, Sayangku, and Snow Cat.
66GF Score
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