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Chong Fai Jewellery Group Holdings CoHKSE:08537 50 Operating Margin % is 10.46% as of Mar. 2026, which is 408% above its 10-year median of 2.06. GuruFocus rates HKSE:08537 with a GF Score™ of 50/100 and a GF Value™ of HK$0.16 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,132 Retail - Cyclical companies, Chong Fai Jewellery Group Holdings Co ranks better than 75.8% on this metric.
HKSE:08537'
s Operating Margin % Range Over the Past 10 Years
Min: -6.35 Med: 2.06 Max: 9.32
Current: 9.32
HKSE:08537's Operating Margin % is ranked better than 75.8% of 1132
companies
in the Retail - Cyclical industry
Industry Median: 3.95
vs HKSE:08537: 9.32
Chong Fai Jewellery Group Holdings Co (HKSE:08537) 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.
Chong Fai Jewellery Group Holdings Co Operating Margin % Related Terms
Chong Fai Jewellery Group 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.
Chong Fai Jewellery Group Holdings Co Operating Margin % Chart
For the Luxury Goods subindustry, Chong Fai Jewellery Group 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.
Chong Fai Jewellery Group Holdings Co Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Chong Fai Jewellery Group Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chong Fai Jewellery Group Holdings Co's Operating Margin % falls into.
Chong Fai Jewellery Group 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.
Chong Fai Jewellery Group Holdings Co (HKSE:08537) has a Operating Margin % of 10.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chong Fai Jewellery Group Holdings Co and its competitors. This is 408% above median its historical median of 2.06. According to the industry distribution chart, Chong Fai Jewellery Group Holdings Co ranks #274 out of 1132 companies in the Retail - Cyclical industry, placing it in the top 24.2%.
Is Chong Fai Jewellery Group Holdings Co's Operating Margin % too high?
Chong Fai Jewellery Group Holdings Co's current Operating Margin % of 10.46% is 408% above median its 10-year median of 2.06. The Retail - Cyclical industry median Operating Margin % is 3.95. Chong Fai Jewellery Group Holdings Co's value of 10.46% is 164.8% above this industry median. Based on the distribution chart, Chong Fai Jewellery Group Holdings Co ranks #274 out of 1132 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Chong Fai Jewellery Group Holdings Co has a GF Score™ of 50/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chong Fai Jewellery Group Holdings Co's Operating Margin % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Chong Fai Jewellery Group Holdings Co ranks #274 out of 1132 companies for Operating Margin %. This places Chong Fai Jewellery Group Holdings Co in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.95. Chong Fai Jewellery Group Holdings Co's value of 10.46% is 164.8% above this benchmark. While the company's 10-year median is 2.06 vs. the industry median of 3.95, Chong Fai Jewellery Group 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.95, based on 1,132 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. Chong Fai Jewellery Group Holdings Co's current Operating Margin % of 10.46% is 164.8% 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 Chong Fai Jewellery Group Holdings Co and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chong Fai Jewellery Group Holdings Co's current Operating Margin % is 10.46%, which is 408% above median its own 10-year median of 2.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chong Fai Jewellery Group Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Chong Fai Jewellery Group Holdings Co (HKSE:08537) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.16, compared to a current price of HK$0.20 — trading 25% above its estimated fair value. The current Operating Margin % is 10.46%, which is 408% above median its 10-year median of 2.06 and 164.8% above the Retail - Cyclical industry median of 3.95. Chong Fai Jewellery Group Holdings Co's overall GF Score™ is 50/100 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 Chong Fai Jewellery Group Holdings Co (HKSE:08537), the current Operating Margin % is 10.46% 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 Chong Fai Jewellery Group Holdings Co (HKSE:08537) Overvalued in 2026?
Based on GuruFocus' analysis, Chong Fai Jewellery Group Holdings Co stock appears to be overvalued.
The current stock price of HK$0.20 is trading 25% above its estimated GF Value™ of HK$0.16.
GuruFocus considers Chong Fai Jewellery Group Holdings Co to be Modestly Overvalued.
Key valuation signals for HKSE:08537:
Operating Margin %: 10.46% (408% above median its 10-year median of 2.06)
GF Value™: HK$0.16 vs. price of HK$0.20 (25% above fair value)
Industry Position: 164.8% above the Retail - Cyclical median (#274 of 1132)
No single metric tells the full story. See the HKSE:08537 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chong Fai Jewellery Group Holdings Co Ltd is a vertically integrated jeweler based in Hong Kong and is engaged in the retail of its products through its network of seven retail stores under the brand name of Chong Fai Jewellery strategically located in Kowloon and the New Territories. The Group's principal products are jewellery products, including gem-set jewelry, and gold jewelry products. The firm generates the majority of its revenue from the retail operations of a jewelry shop. The company operates in Hong Kong and the PRC.
50GF Score
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