Shenzhen Zhaowei Machinery & Electronics Co (HKSE:02692) Operating Margin %: 11.79% (As of Jun. 2026) — 13% Below Median

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HKSE:02692 Shenzhen Zhaowei Machinery & Electronics Co Ltd HKSE:02692
73 GF Score
Price HK$41.10
GF Value HK$55.43
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Shenzhen Zhaowei Machinery & Electronics Co Operating Margin %?

Shenzhen Zhaowei Machinery & Electronics Co HKSE:02692 -3.97% 73 Operating Margin % is 11.79% as of Jun. 2026, which is 13% below its 10-year median of 13.62. GuruFocus rates HKSE:02692 with a GF Score™ of 73/100 and a GF Value™ of HK$55.43 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 3,043 Industrial Products companies, Shenzhen Zhaowei Machinery & Electronics Co ranks better than 75.58% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shenzhen Zhaowei Machinery & Electronics Co's Operating Income for the three months ended in Jun. 2026 was HK$63 Mil. Shenzhen Zhaowei Machinery & Electronics Co's Revenue for the three months ended in Jun. 2026 was HK$531 Mil. Therefore, Shenzhen Zhaowei Machinery & Electronics Co's Operating Margin % for the quarter that ended in Jun. 2026 was 11.79%.

Warning Sign:

Shenzhen Zhaowei Machinery & Electronics Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.6%.

The historical rank and industry rank for Shenzhen Zhaowei Machinery & Electronics Co's Operating Margin % or its related term are showing as below:

HKSE:02692' s Operating Margin % Range Over the Past 10 Years
Min: 9.69   Med: 13.62   Max: 23.8
Current: 12.68


HKSE:02692's Operating Margin % is ranked better than
75.58% of 3043 companies
in the Industrial Products industry
Industry Median: 6.61 vs HKSE:02692: 12.68

Shenzhen Zhaowei Machinery & Electronics Co's 5-Year Average Operating Margin % Growth Rate was -4.60% per year.

Shenzhen Zhaowei Machinery & Electronics Co's Operating Income for the three months ended in Jun. 2026 was HK$63 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was HK$248 Mil.


Shenzhen Zhaowei Machinery & Electronics Co  (HKSE:02692) 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 Nokia’s 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.


Shenzhen Zhaowei Machinery & Electronics Co Operating Margin % Related Terms


Shenzhen Zhaowei Machinery & Electronics Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Shenzhen Zhaowei Machinery & Electronics 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.

Shenzhen Zhaowei Machinery & Electronics Co Operating Margin % Chart

Shenzhen Zhaowei Machinery & Electronics Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.69 10.50 10.54 12.59 13.50

Shenzhen Zhaowei Machinery & Electronics Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.22 13.28 16.36 8.30 11.79

HKSE:02692 vs VRT, BE: Operating Margin % Comparison

For the Electrical Equipment & Parts subindustry, Shenzhen Zhaowei Machinery & Electronics 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.


Shenzhen Zhaowei Machinery & Electronics Co Operating Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shenzhen Zhaowei Machinery & Electronics Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Shenzhen Zhaowei Machinery & Electronics Co's Operating Margin % falls into.


HKSE:02692
73GF Score
Shenzhen Zhaowei Machinery & Electronics Co Ltd HKSE:02692
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shenzhen Zhaowei Machinery & Electronics Co 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.

Shenzhen Zhaowei Machinery & Electronics Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=255.882 / 1895.194
=13.50 %

Shenzhen Zhaowei Machinery & Electronics Co's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=62.588 / 530.901
=11.79 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 11.79% mean?
Shenzhen Zhaowei Machinery & Electronics Co (HKSE:02692) has a Operating Margin % of 11.79% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shenzhen Zhaowei Machinery & Electronics Co and its competitors. This is 13% below median its historical median of 13.62. Over the past decade, Shenzhen Zhaowei Machinery & Electronics Co's Operating Margin % has ranged from 9.69 to 23.80. According to the industry distribution chart, Shenzhen Zhaowei Machinery & Electronics Co ranks #743 out of 3043 companies in the Industrial Products industry, placing it in the top 24.4%.
Is Shenzhen Zhaowei Machinery & Electronics Co's Operating Margin % too high?
Shenzhen Zhaowei Machinery & Electronics Co's current Operating Margin % of 11.79% is 13% below median its 10-year median of 13.62. Over the past 10 years, this metric has ranged from a low of 9.69 to a high of 23.80. The Industrial Products industry median Operating Margin % is 6.61. Shenzhen Zhaowei Machinery & Electronics Co's value of 11.79% is 78.4% above this industry median. Based on the distribution chart, Shenzhen Zhaowei Machinery & Electronics Co ranks #743 out of 3043 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Shenzhen Zhaowei Machinery & Electronics Co has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Zhaowei Machinery & Electronics Co's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Shenzhen Zhaowei Machinery & Electronics Co ranks #743 out of 3043 companies for Operating Margin %. This places Shenzhen Zhaowei Machinery & Electronics Co in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.61. Shenzhen Zhaowei Machinery & Electronics Co's value of 11.79% is 78.4% above this benchmark. Historically, Shenzhen Zhaowei Machinery & Electronics Co's own Operating Margin % has ranged from 9.69 to 23.80 over the past decade. While the company's 10-year median is 13.62 vs. the industry median of 6.61, Shenzhen Zhaowei Machinery & Electronics 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.61, based on 3,043 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. Shenzhen Zhaowei Machinery & Electronics Co's current Operating Margin % of 11.79% is 78.4% 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 Shenzhen Zhaowei Machinery & Electronics Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Zhaowei Machinery & Electronics Co's current Operating Margin % is 11.79%, which is 13% below median its own 10-year median of 13.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Zhaowei Machinery & Electronics Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Zhaowei Machinery & Electronics Co (HKSE:02692) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$55.43, compared to a current price of HK$41.10 — trading 25.9% below its estimated fair value. The current Operating Margin % is 11.79%, which is 13% below median its 10-year median of 13.62 and 78.4% above the Industrial Products industry median of 6.61. Shenzhen Zhaowei Machinery & Electronics Co's overall GF Score™ is 73/100 with 5 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 Shenzhen Zhaowei Machinery & Electronics Co (HKSE:02692), the current Operating Margin % is 11.79% as of Jun. 2026. 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 Shenzhen Zhaowei Machinery & Electronics Co (HKSE:02692) Overvalued in 2026?

Based on GuruFocus' analysis, Shenzhen Zhaowei Machinery & Electronics Co stock appears to be undervalued. The current stock price of HK$41.10 is trading 25.9% below its estimated GF Value™ of HK$55.43. GuruFocus considers Shenzhen Zhaowei Machinery & Electronics Co to be Modestly Undervalued.

Key valuation signals for HKSE:02692:

  • Operating Margin %: 11.79% (13% below median its 10-year median of 13.62)
  • GF Value™: HK$55.43 vs. price of HK$41.10 (25.9% below fair value)
  • GF Score™: 73/100 with 5 warning signs
  • Industry Position: 78.4% above the Industrial Products median (#743 of 3043)

No single metric tells the full story. See the HKSE:02692 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shenzhen Zhaowei Machinery & Electronics Co Business Description

Other Exchanges 003021:China
Address Yanhu Road, Yanluo Street, Room 101, Office Building 62, Yanchuan Community, Baoan District, Guangdong, Shenzhen, CHN, 518105
Shenzhen Zhaowei Machinery & Electronics Co Ltd is engaged in the research and development, production and sales of micro-drive systems, precision injection parts and precision molds. The product portfolio of the group include gearboxes, gear motor, DC motors, Linear actuator motors and others.
73GF Score

Get the complete analysis for HKSE:02692

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$41.10
Price
HK$55.43
GF Value