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Haohua Chemical Science & Technology (SHSE:600378) 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.
Haohua Chemical Science & Technology Operating Margin % Related Terms
Haohua Chemical Science & Technology 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.
Haohua Chemical Science & Technology Operating Margin % Chart
For the Chemicals subindustry, Haohua Chemical Science & Technology'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.
Haohua Chemical Science & Technology Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Haohua Chemical Science & Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Haohua Chemical Science & Technology's Operating Margin % falls into.
Haohua Chemical Science & Technology 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.
Haohua Chemical Science & Technology (SHSE:600378) has a Operating Margin % of 11.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Haohua Chemical Science & Technology and its competitors. This is near median its historical median of 10.97. Over the past decade, Haohua Chemical Science & Technology's Operating Margin % has ranged from 7.18 to 12.54. According to the industry distribution chart, Haohua Chemical Science & Technology ranks #412 out of 1578 companies in the Chemicals industry, placing it in the top 26.1%.
Is Haohua Chemical Science & Technology's Operating Margin % too high?
Haohua Chemical Science & Technology's current Operating Margin % of 11.89% is near median its 10-year median of 10.97. Over the past 10 years, this metric has ranged from a low of 7.18 to a high of 12.54. The Chemicals industry median Operating Margin % is 6.05. Haohua Chemical Science & Technology's value of 11.89% is 96.7% above this industry median. Based on the distribution chart, Haohua Chemical Science & Technology ranks #412 out of 1578 companies in the Chemicals industry, which is above the industry midpoint. Overall, Haohua Chemical Science & Technology has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Haohua Chemical Science & Technology's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Haohua Chemical Science & Technology ranks #412 out of 1578 companies for Operating Margin %. This puts Haohua Chemical Science & Technology in the upper half of its industry. The industry median Operating Margin % is 6.05. Haohua Chemical Science & Technology's value of 11.89% is 96.7% above this benchmark. Historically, Haohua Chemical Science & Technology's own Operating Margin % has ranged from 7.18 to 12.54 over the past decade. While the company's 10-year median is 10.97 vs. the industry median of 6.05, Haohua Chemical Science & Technology 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.05, based on 1,578 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. Haohua Chemical Science & Technology's current Operating Margin % of 11.89% is 96.7% 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 Haohua Chemical Science & Technology and its competitors. For the Chemicals industry, the median Operating Margin % is 6.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Haohua Chemical Science & Technology's current Operating Margin % is 11.89%, which is near median its own 10-year median of 10.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Haohua Chemical Science & Technology stock overvalued right now?
Based on GuruFocus' analysis, Haohua Chemical Science & Technology (SHSE:600378) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥34.56, compared to a current price of ¥43.70 — trading 26.4% above its estimated fair value. The current Operating Margin % is 11.89%, which is near median its 10-year median of 10.97 and 96.7% above the Chemicals industry median of 6.05. Haohua Chemical Science & Technology's overall GF Score™ is 84/100 with 4 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 Haohua Chemical Science & Technology (SHSE:600378), the current Operating Margin % is 11.89% 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 Haohua Chemical Science & Technology (SHSE:600378) Overvalued in 2026?
Based on GuruFocus' analysis, Haohua Chemical Science & Technology stock appears to be overvalued.
The current stock price of ¥43.70 is trading 26.4% above its estimated GF Value™ of ¥34.56.
GuruFocus considers Haohua Chemical Science & Technology to be Modestly Overvalued.
Key valuation signals for SHSE:600378:
Operating Margin %: 11.89% (near median its 10-year median of 10.97)
GF Value™: ¥34.56 vs. price of ¥43.70 (26.4% above fair value)
Industry Position: 96.7% above the Chemicals median (#412 of 1578)
No single metric tells the full story. See the SHSE:600378 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Haohua Chemical Science & Technology Business Description
Haohua Chemical Science & Technology Corp Ltd is a China-based company engaged in the manufacturing of chemicals and related products It specializes in catalysts, PSA technology and equipment, research, production and sales of synthetic linalool and industrial gases, chemical engineering design, and engineering contracting.
84GF Score
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