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Zhengye International Holdings CoHKSE:03363 44 Operating Margin % is 3.31% as of Dec. 2025, which is 42% below its 10-year median of 5.71. GuruFocus rates HKSE:03363 with a GF Score™ of 44/100 and a GF Value™ of HK$0.41 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 283 Forest Products companies, Zhengye International Holdings Co ranks worse than 53.36% on this metric.
Zhengye International Holdings Co (HKSE:03363) 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.
Zhengye International Holdings Co Operating Margin % Related Terms
Zhengye International Holdings Co 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.
Zhengye International Holdings Co Operating Margin % Chart
Zhengye International Holdings Co Operating Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Zhengye International Holdings 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.
Zhengye International Holdings Co Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Zhengye International Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zhengye International Holdings Co's Operating Margin % falls into.
Zhengye International Holdings 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.
* 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.
Zhengye International Holdings Co (HKSE:03363) has a Operating Margin % of 3.31% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Zhengye International Holdings Co and its competitors. This is 42% below median its historical median of 5.71. Over the past decade, Zhengye International Holdings Co's Operating Margin % has ranged from 1.39 to 11.96. According to the industry distribution chart, Zhengye International Holdings Co ranks #151 out of 283 companies in the Forest Products industry, placing it in the top 53.4%.
Is Zhengye International Holdings Co's Operating Margin % too high?
Zhengye International Holdings Co's current Operating Margin % of 3.31% is 42% below median its 10-year median of 5.71. Over the past 10 years, this metric has ranged from a low of 1.39 to a high of 11.96. The Forest Products industry median Operating Margin % is 2.59. Zhengye International Holdings Co's value of 3.31% is 27.8% above this industry median. Based on the distribution chart, Zhengye International Holdings Co ranks #151 out of 283 companies in the Forest Products industry, which is below the industry midpoint. Overall, Zhengye International Holdings Co has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhengye International Holdings Co's Operating Margin % compare to competitors?
According to the Forest Products industry distribution chart, Zhengye International Holdings Co ranks #151 out of 283 companies for Operating Margin %. This places Zhengye International Holdings Co in the lower half of its industry. The industry median Operating Margin % is 2.59. Zhengye International Holdings Co's value of 3.31% is 27.8% above this benchmark. Historically, Zhengye International Holdings Co's own Operating Margin % has ranged from 1.39 to 11.96 over the past decade. While the company's 10-year median is 5.71 vs. the industry median of 2.59, Zhengye International Holdings 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 Forest Products company?
The median Operating Margin % among Forest Products companies is 2.59, based on 283 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. Zhengye International Holdings Co's current Operating Margin % of 3.31% is 27.8% 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 Zhengye International Holdings Co and its competitors. For the Forest Products industry, the median Operating Margin % is 2.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhengye International Holdings Co's current Operating Margin % is 3.31%, which is 42% below median its own 10-year median of 5.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhengye International Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Zhengye International Holdings Co (HKSE:03363) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.41, compared to a current price of HK$0.34 — trading 17.1% below its estimated fair value. The current Operating Margin % is 3.31%, which is 42% below median its 10-year median of 5.71 and 27.8% above the Forest Products industry median of 2.59. Zhengye International Holdings Co's overall GF Score™ is 44/100 with 8 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 Zhengye International Holdings Co (HKSE:03363), the current Operating Margin % is 3.31% 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 Zhengye International Holdings Co (HKSE:03363) Overvalued in 2026?
Based on GuruFocus' analysis, Zhengye International Holdings Co stock appears to be undervalued.
The current stock price of HK$0.34 is trading 17.1% below its estimated GF Value™ of HK$0.41.
GuruFocus considers Zhengye International Holdings Co to be Modestly Undervalued.
Key valuation signals for HKSE:03363:
Operating Margin %: 3.31% (42% below median its 10-year median of 5.71)
GF Value™: HK$0.41 vs. price of HK$0.34 (17.1% below fair value)
Industry Position: 27.8% above the Forest Products median (#151 of 283)
No single metric tells the full story. See the HKSE:03363 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhengye International Holdings Co Business Description
Zhengye International Holdings Co Ltd is an investment holding company. The company, along with its subsidiaries, is principally engaged in the manufacturing and sale of paper, paperboard and paper-based packaging products. Operating Segments of the company are: Packaging paper segment produces and sells corrugated medium paper and craft paper; and Paper-based packaging products segment produces and sells craft cartons, color-printed cartons, honeycomb paper products and color box packaging. It operates in PRC. It generates maximum revenue from Sales of packaging paper products.
44GF Score
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