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Yuanda China HoldingsHKSE:02789 -6.31%44 Operating Margin % is 20.20% as of Dec. 2025, which is 5216% above its 10-year median of 0.38. GuruFocus rates HKSE:02789 with a GF Score™ of 44/100 and a GF Value™ of HK$0.05 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,771 Construction companies, Yuanda China Holdings ranks better than 84.81% on this metric.
Yuanda China Holdings (HKSE:02789) 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.
Yuanda China Holdings Operating Margin % Related Terms
Yuanda China Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for Yuanda China Holdings'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:02789 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Yuanda China Holdings'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.
Yuanda China Holdings Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Yuanda China Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Yuanda China Holdings's Operating Margin % falls into.
Yuanda China Holdings 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.
Yuanda China Holdings'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.
Yuanda China Holdings (HKSE:02789) has a Operating Margin % of 20.20% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Yuanda China Holdings and its competitors. This is 5216% above median its historical median of 0.38. According to the industry distribution chart, Yuanda China Holdings ranks #269 out of 1771 companies in the Construction industry, placing it in the top 15.2%.
Is Yuanda China Holdings' Operating Margin % too high?
Yuanda China Holdings' current Operating Margin % of 20.20% is 5216% above median its 10-year median of 0.38. The Construction industry median Operating Margin % is 5.93. Yuanda China Holdings' value of 20.20% is 240.6% above this industry median. Based on the distribution chart, Yuanda China Holdings ranks #269 out of 1771 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Yuanda China Holdings has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Yuanda China Holdings' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Yuanda China Holdings ranks #269 out of 1771 companies for Operating Margin %. This places Yuanda China Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.93. Yuanda China Holdings' value of 20.20% is 240.6% above this benchmark. While the company's 10-year median is 0.38 vs. the industry median of 5.93, Yuanda China Holdings 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 Construction company?
The median Operating Margin % among Construction companies is 5.93, based on 1,771 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. Yuanda China Holdings's current Operating Margin % of 20.20% is 240.6% 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 Yuanda China Holdings and its competitors. For the Construction industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yuanda China Holdings's current Operating Margin % is 20.20%, which is 5216% above median its own 10-year median of 0.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yuanda China Holdings stock overvalued right now?
Based on GuruFocus' analysis, Yuanda China Holdings (HKSE:02789) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.19 — trading 286% above its estimated fair value. The current Operating Margin % is 20.20%, which is 5216% above median its 10-year median of 0.38 and 240.6% above the Construction industry median of 5.93. Yuanda China Holdings' overall GF Score™ is 44/100 with 3 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 Yuanda China Holdings (HKSE:02789), the current Operating Margin % is 20.20% 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 Yuanda China Holdings (HKSE:02789) Overvalued in 2026?
Based on GuruFocus' analysis, Yuanda China Holdings stock appears to be overvalued.
The current stock price of HK$0.19 is trading 286% above its estimated GF Value™ of HK$0.05.
GuruFocus considers Yuanda China Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:02789:
Operating Margin %: 20.20% (5216% above median its 10-year median of 0.38)
GF Value™: HK$0.05 vs. price of HK$0.19 (286% above fair value)
Industry Position: 240.6% above the Construction median (#269 of 1771)
No single metric tells the full story. See the HKSE:02789 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yuanda China Holdings Ltd principal activities of the Group are the design, procurement, production, sale and installation of curtain wall systems. It operates in two segments namely Domestic that comprises construction contracts carried out in Chinese Mainland; and Overseas that comprises construction contracts carried out outside of Chinese Mainland. The company's projects are China projects, United Kingdom projects, United States project, Europe projects, Australia projects, Middle East projects, Southeast Asia projects, Singapore projects, Japan and beyond projects. Its products are Curtain wall, Skylight, Metal roof system, Canopy, Breast Board system. The company has presence in Chinese Mainland, United Kingdom, Dubai, Cambodia, Saudi, Australia, United States of America, and Others.
44GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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