Launch Tech CoHKSE:02488 -0.14%72 Operating Margin % is 14.31% as of Dec. 2025, which is 63% above its 10-year median of 8.77. GuruFocus rates HKSE:02488 with a GF Score™ of 72/100 and a GF Value™ of HK$6.49 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,324 Vehicles & Parts companies, Launch Tech Co ranks better than 93.2% on this metric.
The historical rank and industry rank for Launch Tech Co's Operating Margin % or its related term are showing as below:
HKSE:02488'
s Operating Margin % Range Over the Past 10 Years
Min: -11.2 Med: 8.77 Max: 18.19
Current: 17.29
HKSE:02488's Operating Margin % is ranked better than 93.2% of 1324
companies
in the Vehicles & Parts industry
Industry Median: 4.865
vs HKSE:02488: 17.29
Launch Tech Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Launch Tech Co (HKSE:02488) 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.
Launch Tech Co Operating Margin % Related Terms
Launch Tech Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Launch Tech Co'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:02488 vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Launch Tech Co'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.
Launch Tech Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Launch Tech Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Launch Tech Co'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.
Launch Tech Co'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.
Launch Tech Co (HKSE:02488) has a Operating Margin % of 14.31% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Launch Tech Co and its competitors. This is 63% above median its historical median of 8.77. According to the industry distribution chart, Launch Tech Co ranks #90 out of 1324 companies in the Vehicles & Parts industry, placing it in the top 6.8%.
Is Launch Tech Co's Operating Margin % too high?
Launch Tech Co's current Operating Margin % of 14.31% is 63% above median its 10-year median of 8.77. The Vehicles & Parts industry median Operating Margin % is 4.87. Launch Tech Co's value of 14.31% is 194.1% above this industry median. Based on the distribution chart, Launch Tech Co ranks #90 out of 1324 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Launch Tech Co has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Launch Tech Co's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Launch Tech Co ranks #90 out of 1324 companies for Operating Margin %. This places Launch Tech Co in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.87. Launch Tech Co's value of 14.31% is 194.1% above this benchmark. While the company's 10-year median is 8.77 vs. the industry median of 4.87, Launch Tech Co 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.87, based on 1,324 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. Launch Tech Co's current Operating Margin % of 14.31% is 194.1% 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 Launch Tech Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Launch Tech Co's current Operating Margin % is 14.31%, which is 63% above median its own 10-year median of 8.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Launch Tech Co stock overvalued right now?
Based on GuruFocus' analysis, Launch Tech Co (HKSE:02488) is currently considered Fairly Valued. The stock's GF Value™ is HK$6.49, compared to a current price of HK$6.90 — trading 6.3% above its estimated fair value. The current Operating Margin % is 14.31%, which is 63% above median its 10-year median of 8.77 and 194.1% above the Vehicles & Parts industry median of 4.87. Launch Tech Co's overall GF Score™ is 72/100 with 2 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 Launch Tech Co (HKSE:02488), the current Operating Margin % is 14.31% 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 Launch Tech Co (HKSE:02488) Overvalued in 2026?
Based on GuruFocus' analysis, Launch Tech Co stock appears to be overvalued.
The current stock price of HK$6.90 is trading 6.3% above its estimated GF Value™ of HK$6.49.
GuruFocus considers Launch Tech Co to be Fairly Valued.
Key valuation signals for HKSE:02488:
Operating Margin %: 14.31% (63% above median its 10-year median of 8.77)
GF Value™: HK$6.49 vs. price of HK$6.90 (6.3% above fair value)
Industry Position: 194.1% above the Vehicles & Parts median (#90 of 1324)
No single metric tells the full story. See the HKSE:02488 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Launch Tech Co Ltd principally engages in the provision of products and services serving the automotive aftermarket and the automobile industry mainly in the People's Republic of China and certain overseas countries. The Company has three reporting segments: i) Automotive diagnosis segment, ii) Europe Overseas Sales segment, and iii) U.S. overseas sales segment. The automotive diagnosis segment covers research and development, production and sales of automotive diagnostic and inspection products. The Europe Overseas Sales segment covers development and maintenance of European distributors and customers. The U.S. Overseas Sales segment covers development and maintenance of distributors and customers in the Americas. The majority of revenue is derived from the Automotive diagnosis segment.
72GF Score
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