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Zibuyu GroupHKSE:02420 +4.21%92 Operating Margin % is 6.49% as of Dec. 2025, which is 10% above its 10-year median of 5.90. GuruFocus rates HKSE:02420 with a GF Score™ of 92/100 and a GF Value™ of HK$6.13 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,130 Retail - Cyclical companies, Zibuyu Group ranks better than 62.12% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Zibuyu Group's Operating Income for the
six
months ended in Dec. 2025 was HK$193 Mil. Zibuyu Group's Revenue for the
six
months ended in Dec. 2025 was HK$2,982 Mil. Therefore, Zibuyu Group's Operating Margin % for the quarter that ended in Dec. 2025 was 6.49%.
The historical rank and industry rank for Zibuyu Group's Operating Margin % or its related term are showing as below:
HKSE:02420'
s Operating Margin % Range Over the Past 10 Years
Min: -8.4 Med: 5.9 Max: 11.03
Current: 5.91
HKSE:02420's Operating Margin % is ranked better than 62.12% of 1130
companies
in the Retail - Cyclical industry
Industry Median: 3.89
vs HKSE:02420: 5.91
Zibuyu Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Zibuyu Group's Operating Income for the
six
months ended in Dec. 2025 was HK$193 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was HK$303 Mil.
Warning Sign:
Zibuyu Group Ltd has recorded a loss in operating income at least once over the past 3 years.
Zibuyu Group (HKSE:02420) 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.
Zibuyu Group Operating Margin % Related Terms
Zibuyu Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Zibuyu 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:02420 vs AMZN, BABA, PDD: Operating Margin % Comparison
For the Internet Retail subindustry, Zibuyu 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.
Zibuyu Group Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Zibuyu Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zibuyu 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.
Zibuyu 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.
Zibuyu Group (HKSE:02420) has a Operating Margin % of 6.49% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Zibuyu Group and its competitors. This is 10% above median its historical median of 5.90. According to the industry distribution chart, Zibuyu Group ranks #428 out of 1130 companies in the Retail - Cyclical industry, placing it in the top 37.9%.
Is Zibuyu Group's Operating Margin % too high?
Zibuyu Group's current Operating Margin % of 6.49% is 10% above median its 10-year median of 5.90. The Retail - Cyclical industry median Operating Margin % is 3.89. Zibuyu Group's value of 6.49% is 66.8% above this industry median. Based on the distribution chart, Zibuyu Group ranks #428 out of 1130 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Zibuyu Group has a GF Score™ of 92/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zibuyu Group's Operating Margin % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Zibuyu Group ranks #428 out of 1130 companies for Operating Margin %. This puts Zibuyu Group in the upper half of its industry. The industry median Operating Margin % is 3.89. Zibuyu Group's value of 6.49% is 66.8% above this benchmark. While the company's 10-year median is 5.90 vs. the industry median of 3.89, Zibuyu 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.89, based on 1,130 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. Zibuyu Group's current Operating Margin % of 6.49% is 66.8% 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 Zibuyu Group and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zibuyu Group's current Operating Margin % is 6.49%, which is 10% above median its own 10-year median of 5.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zibuyu Group stock overvalued right now?
Based on GuruFocus' analysis, Zibuyu Group (HKSE:02420) is currently considered Possible Value Trap. The stock's GF Value™ is HK$6.13, compared to a current price of HK$3.96 — trading 35.4% below its estimated fair value. The current Operating Margin % is 6.49%, which is 10% above median its 10-year median of 5.90 and 66.8% above the Retail - Cyclical industry median of 3.89. Zibuyu Group's overall GF Score™ is 92/100 with 4 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 Zibuyu Group (HKSE:02420), the current Operating Margin % is 6.49% 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 Zibuyu Group (HKSE:02420) Overvalued in 2026?
Based on GuruFocus' analysis, Zibuyu Group stock appears to be undervalued.
The current stock price of HK$3.96 is trading 35.4% below its estimated GF Value™ of HK$6.13.
GuruFocus considers Zibuyu Group to be Possible Value Trap.
Key valuation signals for HKSE:02420:
Operating Margin %: 6.49% (10% above median its 10-year median of 5.90)
GF Value™: HK$6.13 vs. price of HK$3.96 (35.4% below fair value)
Industry Position: 66.8% above the Retail - Cyclical median (#428 of 1130)
No single metric tells the full story. See the HKSE:02420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zibuyu Group Ltd is an investment holding company, and its subsidiaries are engaged in the design, procurement, and sale of apparel, footwear, and related products. The group sources products from OEM suppliers based on its designs and sells them globally through third-party e-commerce platforms and its self-operated online stores. Its sales channels include platforms such as Amazon, TikTok, Temu, and other third-party e-commerce platforms, as well as its own online stores. Its geographical segments include North America, Asia, Europe, and Others.
92GF Score
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