Zengame Technology HoldingHKSE:02660 77 Operating Margin % is 26.02% as of Dec. 2025, which is 6% below its 10-year median of 27.54. GuruFocus rates HKSE:02660 with a GF Score™ of 77/100 and a GF Value™ of HK$2.43 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 552 Interactive Media companies, Zengame Technology Holding ranks better than 84.06% on this metric.
Zengame Technology Holding Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.8%.
The historical rank and industry rank for Zengame Technology Holding's Operating Margin % or its related term are showing as below:
HKSE:02660'
s Operating Margin % Range Over the Past 10 Years
Min: 11.8 Med: 27.54 Max: 41.68
Current: 25.29
HKSE:02660's Operating Margin % is ranked better than 84.06% of 552
companies
in the Interactive Media industry
Industry Median: 3.02
vs HKSE:02660: 25.29
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.
Zengame Technology Holding Operating Margin % Related Terms
Zengame Technology Holding 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.
HKSE:02660 vs NTES, EA, TTWO: Operating Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Zengame Technology Holding'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.
Zengame Technology Holding Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Zengame Technology Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zengame Technology Holding'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.
Zengame Technology Holding'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.
Zengame Technology Holding (HKSE:02660) has a Operating Margin % of 26.02% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Zengame Technology Holding and its competitors. This is near median its historical median of 27.54. Over the past decade, Zengame Technology Holding's Operating Margin % has ranged from 11.80 to 41.68. According to the industry distribution chart, Zengame Technology Holding ranks #88 out of 552 companies in the Interactive Media industry, placing it in the top 15.9%.
Is Zengame Technology Holding's Operating Margin % too high?
Zengame Technology Holding's current Operating Margin % of 26.02% is near median its 10-year median of 27.54. Over the past 10 years, this metric has ranged from a low of 11.80 to a high of 41.68. The Interactive Media industry median Operating Margin % is 3.02. Zengame Technology Holding's value of 26.02% is 761.6% above this industry median. Based on the distribution chart, Zengame Technology Holding ranks #88 out of 552 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Zengame Technology Holding has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zengame Technology Holding's Operating Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Zengame Technology Holding ranks #88 out of 552 companies for Operating Margin %. This places Zengame Technology Holding in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.02. Zengame Technology Holding's value of 26.02% is 761.6% above this benchmark. Historically, Zengame Technology Holding's own Operating Margin % has ranged from 11.80 to 41.68 over the past decade. While the company's 10-year median is 27.54 vs. the industry median of 3.02, Zengame Technology Holding 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 an Interactive Media company?
The median Operating Margin % among Interactive Media companies is 3.02, based on 552 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. Zengame Technology Holding's current Operating Margin % of 26.02% is 761.6% 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 Zengame Technology Holding and its competitors. For the Interactive Media industry, the median Operating Margin % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zengame Technology Holding's current Operating Margin % is 26.02%, which is near median its own 10-year median of 27.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zengame Technology Holding stock overvalued right now?
Based on GuruFocus' analysis, Zengame Technology Holding (HKSE:02660) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$2.43, compared to a current price of HK$2.16 — trading 11.1% below its estimated fair value. The current Operating Margin % is 26.02%, which is near median its 10-year median of 27.54 and 761.6% above the Interactive Media industry median of 3.02. Zengame Technology Holding's overall GF Score™ is 77/100 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 Zengame Technology Holding (HKSE:02660), the current Operating Margin % is 26.02% 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 Zengame Technology Holding (HKSE:02660) Overvalued in 2026?
Based on GuruFocus' analysis, Zengame Technology Holding stock appears to be undervalued.
The current stock price of HK$2.16 is trading 11.1% below its estimated GF Value™ of HK$2.43.
GuruFocus considers Zengame Technology Holding to be Modestly Undervalued.
Key valuation signals for HKSE:02660:
Operating Margin %: 26.02% (near median its 10-year median of 27.54)
GF Value™: HK$2.43 vs. price of HK$2.16 (11.1% below fair value)
Industry Position: 761.6% above the Interactive Media median (#88 of 552)
No single metric tells the full story. See the HKSE:02660 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressKeji South 12 Road, Rooms 1304-06, Changhong Science and Technology Mansion, Science and Technology Park, Nanshan District, Shenzhen, CHN, 518057
Zengame Technology Holding Ltd is a mobile game developer. The company operates self-developed and third-party-developed games. The company's games include card games, board games, other casual games, and hardcore games, including Fight the Landlord, Sichuan Mahjong, Hunan Run Fast, Tiantian Love Chinese Chess, Happy Mengmengxiao and Kuaishou Fishing. It is also engaged in the investment business.
77GF Score
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