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Shanghai Haohai Biological Technology Co (HKSE:06826) Operating Margin % : 19.71% (As of Jun. 2024)


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What is Shanghai Haohai Biological Technology Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Shanghai Haohai Biological Technology Co's Operating Income for the three months ended in Jun. 2024 was HK$161 Mil. Shanghai Haohai Biological Technology Co's Revenue for the three months ended in Jun. 2024 was HK$817 Mil. Therefore, Shanghai Haohai Biological Technology Co's Operating Margin % for the quarter that ended in Jun. 2024 was 19.71%.

Warning Sign:

Shanghai Haohai Biological Technology Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.4%.

The historical rank and industry rank for Shanghai Haohai Biological Technology Co's Operating Margin % or its related term are showing as below:

HKSE:06826' s Operating Margin % Range Over the Past 10 Years
Min: 9.46   Med: 23.18   Max: 41.31
Current: 17.03


HKSE:06826's Operating Margin % is ranked better than
88.45% of 1004 companies
in the Biotechnology industry
Industry Median: -155.44 vs HKSE:06826: 17.03

Shanghai Haohai Biological Technology Co's 5-Year Average Operating Margin % Growth Rate was -10.40% per year.

Shanghai Haohai Biological Technology Co's Operating Income for the three months ended in Jun. 2024 was HK$161 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was HK$506 Mil.

Warning Sign:

Shanghai Haohai Biological Technology Co Ltd has recorded a loss in operating income at least once over the past 3 years.


Shanghai Haohai Biological Technology Co Operating Margin % Historical Data

The historical data trend for Shanghai Haohai Biological Technology 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.

* Premium members only.

Shanghai Haohai Biological Technology Co Operating Margin % Chart

Shanghai Haohai Biological Technology Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.85 9.46 13.00 10.47 16.64

Shanghai Haohai Biological Technology Co Quarterly Data
Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -16.87 18.93 15.64 19.71 13.57

Competitive Comparison of Shanghai Haohai Biological Technology Co's Operating Margin %

For the Biotechnology subindustry, Shanghai Haohai Biological Technology 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.


Shanghai Haohai Biological Technology Co's Operating Margin % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Shanghai Haohai Biological Technology Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Shanghai Haohai Biological Technology Co's Operating Margin % falls into.



Shanghai Haohai Biological Technology 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.

Shanghai Haohai Biological Technology Co's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=479.488 / 2882.009
=16.64 %

Shanghai Haohai Biological Technology Co's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=160.922 / 816.502
=19.71 %

* 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.


Shanghai Haohai Biological Technology Co  (HKSE:06826) 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.


Shanghai Haohai Biological Technology Co Operating Margin % Related Terms

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Shanghai Haohai Biological Technology Co Business Description

Traded in Other Exchanges
Address
No. 1386 Hongqiao Road, 23rd Floor, WenGuang Plaza, Changning District, Shanghai, CHN
Shanghai Haohai Biological Technology Co Ltd is engaged in the manufacturing and sale of biologicals, medical hyaluronate, and ophthalmology products. The Company's operating activities are related to single operating segment which is the manufacture and sale of biologicals, medical hyaluronate and intraocular lens, research and development of biological engineering and pharmaceutical products and the provision of related services. Its products are categorized into four types comprising ophthalmology, medical aesthetics, orthopedics, and anti-adhesion. Geographically, it has operations in Mainland China which is the key revenue driver, the United States, the United Kingdom, and other countries.
Executives
Morgan Stanley 2201 Interest of corporation controlled by you
Dalton Investments Llc 2102 Investment manager
The Bank Of New York Mellon Corporation 2201 Interest of corporation controlled by you
Templeton Investment Counsel, Llc 2102 Investment manager
Kabouter Management Llc 2102 Investment manager
Royal Bank Of Canada 2201 Interest of corporation controlled by you
Kabouter International Insight Fund, Llc 2102 Investment manager
Prudence Investment Management (hong Kong) Limited 2102 Investment manager

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