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China Hongbao Holdings (HKSE:08316) 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 Hongbao Holdings Operating Margin % Related Terms
China Hongbao Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for China Hongbao 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:08316 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, China Hongbao 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.
China Hongbao Holdings Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, China Hongbao Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Hongbao Holdings's Operating Margin % falls into.
China Hongbao 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.
China Hongbao Holdings's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
China Hongbao Holdings (HKSE:08316) has a Operating Margin % of 8.24% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on China Hongbao Holdings and its competitors. According to the industry distribution chart, China Hongbao Holdings ranks #1425 out of 1772 companies in the Construction industry, placing it in the top 80.4%.
Is China Hongbao Holdings' Operating Margin % too high?
China Hongbao Holdings' current Operating Margin % is 8.24%. The Construction industry median Operating Margin % is 5.95. China Hongbao Holdings' value of 8.24% is 38.5% above this industry median. Based on the distribution chart, China Hongbao Holdings ranks #1425 out of 1772 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, China Hongbao Holdings has a GF Score™ of 39/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Hongbao Holdings' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, China Hongbao Holdings ranks #1425 out of 1772 companies for Operating Margin %. This places China Hongbao Holdings in the lower half of its industry. The industry median Operating Margin % is 5.95. China Hongbao Holdings' value of 8.24% is 38.5% above this benchmark. 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 5.95, based on 1,772 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 Hongbao Holdings's current Operating Margin % of 8.24% is 38.5% 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 China Hongbao Holdings and its competitors. For the Construction industry, the median Operating Margin % is 5.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Hongbao Holdings's current Operating Margin % is 8.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Hongbao Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Hongbao Holdings (HKSE:08316) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.23, compared to a current price of HK$0.22 — trading 4.3% below its estimated fair value. The current Operating Margin % is 8.24% and 38.5% above the Construction industry median of 5.95. China Hongbao Holdings' overall GF Score™ is 39/100 with 6 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 Hongbao Holdings (HKSE:08316), the current Operating Margin % is 8.24% as of Mar. 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 Hongbao Holdings (HKSE:08316) Overvalued in 2026?
Based on GuruFocus' analysis, China Hongbao Holdings stock appears to be undervalued.
The current stock price of HK$0.22 is trading 4.3% below its estimated GF Value™ of HK$0.23.
GuruFocus considers China Hongbao Holdings to be Fairly Valued.
Key valuation signals for HKSE:08316:
Operating Margin %: 8.24%
GF Value™: HK$0.23 vs. price of HK$0.22 (4.3% below fair value)
Industry Position: 38.5% above the Construction median (#1425 of 1772)
No single metric tells the full story. See the HKSE:08316 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Hongbao Holdings Ltd is an investment holding company. Along with its subsidiaries, it is principally engaged in foundation and other construction business as a subcontractor in Hong Kong. Its customers principally comprise main contractors and subcontractors. In addition, it is involved in internet services (including O2O Commerce and supply chain management) business in the PRC. The group's reportable operating segments are Foundation and other construction works, which derive maximum revenue, and Internet services. Geographically, it generates maximum revenue from Hong Kong, followed by Mainland China.
39GF Score
Get the complete analysis for HKSE:08316
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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