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China Tobacco International (HK) Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for China Tobacco International (HK) Co's Operating Margin % or its related term are showing as below:
HKSE:06055'
s Operating Margin % Range Over the Past 10 Years
Min: 1.78 Med: 5.85 Max: 10.23
Current: 10.23
HKSE:06055's Operating Margin % is ranked worse than 53.33% of 45
companies
in the Tobacco Products industry
Industry Median: 10.82
vs HKSE:06055: 10.23
China Tobacco International (HK) Co (HKSE:06055) 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.
China Tobacco International (HK) Co Operating Margin % Related Terms
China Tobacco International (HK) 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.
China Tobacco International (HK) Co Operating Margin % Chart
HKSE:06055 vs PM, MO, TPB: Operating Margin % Comparison
For the Tobacco subindustry, China Tobacco International (HK) 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.
China Tobacco International (HK) Co Operating Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, China Tobacco International (HK) Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Tobacco International (HK) Co's Operating Margin % falls into.
China Tobacco International (HK) 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.
China Tobacco International (HK) Co (HKSE:06055) has a Operating Margin % of 10.26% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on China Tobacco International (HK) Co and its competitors. This is 75% above median its historical median of 5.85. Over the past decade, China Tobacco International (HK) Co's Operating Margin % has ranged from 1.78 to 10.23. According to the industry distribution chart, China Tobacco International (HK) Co ranks #24 out of 45 companies in the Tobacco Products industry, placing it in the top 53.3%.
Is China Tobacco International (HK) Co's Operating Margin % too high?
China Tobacco International (HK) Co's current Operating Margin % of 10.26% is 75% above median its 10-year median of 5.85. Over the past 10 years, this metric has ranged from a low of 1.78 to a high of 10.23. The Tobacco Products industry median Operating Margin % is 10.82. China Tobacco International (HK) Co's value of 10.26% is 5.2% below this industry median. Based on the distribution chart, China Tobacco International (HK) Co ranks #24 out of 45 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, China Tobacco International (HK) Co has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Tobacco International (HK) Co's Operating Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, China Tobacco International (HK) Co ranks #24 out of 45 companies for Operating Margin %. This places China Tobacco International (HK) Co in the lower half of its industry. The industry median Operating Margin % is 10.82. China Tobacco International (HK) Co's value of 10.26% is 5.2% below this benchmark. Historically, China Tobacco International (HK) Co's own Operating Margin % has ranged from 1.78 to 10.23 over the past decade. While the company's 10-year median is 5.85 vs. the industry median of 10.82, China Tobacco International (HK) Co 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 a Tobacco Products company?
The median Operating Margin % among Tobacco Products companies is 10.82, based on 45 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. China Tobacco International (HK) Co's current Operating Margin % of 10.26% is 5.2% 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 China Tobacco International (HK) Co and its competitors. For the Tobacco Products industry, the median Operating Margin % is 10.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Tobacco International (HK) Co's current Operating Margin % is 10.26%, which is 75% above median its own 10-year median of 5.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Tobacco International (HK) Co stock overvalued right now?
Based on GuruFocus' analysis, China Tobacco International (HK) Co (HKSE:06055) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$21.42, compared to a current price of HK$24.42 — trading 14% above its estimated fair value. The current Operating Margin % is 10.26%, which is 75% above median its 10-year median of 5.85 and 5.2% below the Tobacco Products industry median of 10.82. China Tobacco International (HK) Co's overall GF Score™ is 88/100 with 2 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 China Tobacco International (HK) Co (HKSE:06055), the current Operating Margin % is 10.26% 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 China Tobacco International (HK) Co (HKSE:06055) Overvalued in 2026?
Based on GuruFocus' analysis, China Tobacco International (HK) Co stock appears to be overvalued.
The current stock price of HK$24.42 is trading 14% above its estimated GF Value™ of HK$21.42.
GuruFocus considers China Tobacco International (HK) Co to be Modestly Overvalued.
Key valuation signals for HKSE:06055:
Operating Margin %: 10.26% (75% above median its 10-year median of 5.85)
GF Value™: HK$21.42 vs. price of HK$24.42 (14% above fair value)
Industry Position: 5.2% below the Tobacco Products median (#24 of 45)
No single metric tells the full story. See the HKSE:06055 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Tobacco International (HK) Co Ltd is engaged in the tobacco business. It operates through various segments namely the Tobacco Leaf Products Export Business, the Tobacco Leaf Product Import Business, the Cigarettes Export Business, the New Tobacco Product Export Business, and the Brazil Operation Business. The company's geographical segments are China (excluding the SARs), Indonesia, Korea, Hong Kong, Philippines, Vietnam, Brazil, Belgium, Poland, Paraguay, Egypt, and others, of which it derives maximum revenue from the PRC. It earns maximum revenue from the Tobacco Leaf Product Import Business.
88GF 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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