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Zhongtian Construction (Hunan) Group (HKSE:02433) 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.
Zhongtian Construction (Hunan) Group Operating Margin % Related Terms
Zhongtian Construction (Hunan) Group Operating Margin % Historical Data
* 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.
Zhongtian Construction (Hunan) Group Operating Margin % Chart
HKSE:02433 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Zhongtian Construction (Hunan) 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.
Zhongtian Construction (Hunan) Group Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Zhongtian Construction (Hunan) Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zhongtian Construction (Hunan) Group's Operating Margin % falls into.
Zhongtian Construction (Hunan) Group 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.
* 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.
Zhongtian Construction (Hunan) Group (HKSE:02433) has a Operating Margin % of -4.10% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Zhongtian Construction (Hunan) Group and its competitors. According to the industry distribution chart, Zhongtian Construction (Hunan) Group ranks #1410 out of 1768 companies in the Construction industry, placing it in the top 79.8%.
Is Zhongtian Construction (Hunan) Group's Operating Margin % too high?
Zhongtian Construction (Hunan) Group's current Operating Margin % is -4.10%. Based on the distribution chart, Zhongtian Construction (Hunan) Group ranks #1410 out of 1768 companies in the Construction industry, which is in the bottom quartile relative to peers.
How does Zhongtian Construction (Hunan) Group's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Zhongtian Construction (Hunan) Group ranks #1410 out of 1768 companies for Operating Margin %. This places Zhongtian Construction (Hunan) Group 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 1,768 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 Zhongtian Construction (Hunan) Group 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. Zhongtian Construction (Hunan) Group's current Operating Margin % is -4.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongtian Construction (Hunan) Group stock overvalued right now?
Based on GuruFocus' analysis, Zhongtian Construction (Hunan) Group (HKSE:02433) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.07 — trading 48% above its estimated fair value. The current Operating Margin % is -4.10%. 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 Zhongtian Construction (Hunan) Group (HKSE:02433), the current Operating Margin % is -4.10% 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.
Zhongtian Construction (Hunan) Group Business Description
Zhongtian Construction (Hunan) Group Ltd investment holding company. The company is principally engaged in the provision of construction services in the PRC. It focuses on the provision of construction services comprising civil building construction services, provision of construction contracting mainly as general contractor for residential, industrial; municipal works construction services, which mainly consist of the construction of urban roads, education institutions, sports stadiums and water supply works; foundation works services which include foundation construction as well as earthwork construction; prefabricated steel structure construction services; and other specialized contracting works which include building renovation and decoration construction specialized contracting.
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