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Renheng Enterprise HoldingsHKSE:03628 61 Operating Margin % is 2.30% as of Dec. 2025, which is 26% below its 10-year median of 3.12. GuruFocus rates HKSE:03628 with a GF Score™ of 61/100 and a GF Value™ of HK$0.17 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 3,043 Industrial Products companies, Renheng Enterprise Holdings ranks better than 81.86% on this metric.
The historical rank and industry rank for Renheng Enterprise Holdings's Operating Margin % or its related term are showing as below:
HKSE:03628'
s Operating Margin % Range Over the Past 10 Years
Min: -34.34 Med: 3.12 Max: 15.06
Current: 15.06
HKSE:03628's Operating Margin % is ranked better than 81.86% of 3043
companies
in the Industrial Products industry
Industry Median: 6.61
vs HKSE:03628: 15.06
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.
Renheng Enterprise Holdings Operating Margin % Related Terms
Renheng Enterprise Holdings 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:03628 vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Renheng Enterprise 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.
Renheng Enterprise Holdings Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Renheng Enterprise Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Renheng Enterprise Holdings'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.
Renheng Enterprise 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.
Renheng Enterprise Holdings (HKSE:03628) has a Operating Margin % of 2.30% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Renheng Enterprise Holdings and its competitors. This is 26% below median its historical median of 3.12. According to the industry distribution chart, Renheng Enterprise Holdings ranks #552 out of 3043 companies in the Industrial Products industry, placing it in the top 18.1%.
Is Renheng Enterprise Holdings' Operating Margin % too high?
Renheng Enterprise Holdings' current Operating Margin % of 2.30% is 26% below median its 10-year median of 3.12. The Industrial Products industry median Operating Margin % is 6.61. Renheng Enterprise Holdings' value of 2.30% is 65.2% below this industry median. Based on the distribution chart, Renheng Enterprise Holdings ranks #552 out of 3043 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Renheng Enterprise Holdings has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Renheng Enterprise Holdings' Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Renheng Enterprise Holdings ranks #552 out of 3043 companies for Operating Margin %. This places Renheng Enterprise Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.61. Renheng Enterprise Holdings' value of 2.30% is 65.2% below this benchmark. While the company's 10-year median is 3.12 vs. the industry median of 6.61, Renheng Enterprise Holdings has consistently been below 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. Renheng Enterprise Holdings's current Operating Margin % of 2.30% is 65.2% below 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 Renheng Enterprise Holdings 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. Renheng Enterprise Holdings's current Operating Margin % is 2.30%, which is 26% below median its own 10-year median of 3.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renheng Enterprise Holdings stock overvalued right now?
Based on GuruFocus' analysis, Renheng Enterprise Holdings (HKSE:03628) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.20 — trading 17.6% above its estimated fair value. The current Operating Margin % is 2.30%, which is 26% below median its 10-year median of 3.12 and 65.2% below the Industrial Products industry median of 6.61. Renheng Enterprise Holdings' overall GF Score™ is 61/100 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 Renheng Enterprise Holdings (HKSE:03628), the current Operating Margin % is 2.30% 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 Renheng Enterprise Holdings (HKSE:03628) Overvalued in 2026?
Based on GuruFocus' analysis, Renheng Enterprise Holdings stock appears to be overvalued.
The current stock price of HK$0.20 is trading 17.6% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Renheng Enterprise Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:03628:
Operating Margin %: 2.30% (26% below median its 10-year median of 3.12)
GF Value™: HK$0.17 vs. price of HK$0.20 (17.6% above fair value)
Industry Position: 65.2% below the Industrial Products median (#552 of 3043)
No single metric tells the full story. See the HKSE:03628 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renheng Enterprise Holdings Ltd is an investment holding company that along with its subsidiaries, is engaged in the manufacture and sale of tobacco machinery products in the PRC. The company mainly produces three types of cataloged special-purpose tobacco machinery products, namely casing and flavoring systems, pneumatic feeding systems, and pre-pressing packing machines. It is also engaged in providing maintenance, overhaul, and modification services for tobacco machinery products. The company generates a majority of its revenue from construction contracts for casing and flavouring systems. All of the Group's revenue are derived in the PRC.
61GF Score
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