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Sanan Optoelectronics CoSHSE:600703 -6.60%73 Operating Margin % is 7.85% as of Mar. 2026, which is 53% below its 10-year median of 16.60. GuruFocus rates SHSE:600703 with a GF Score™ of 73/100 and a GF Value™ of ¥12.66 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,025 Semiconductors companies, Sanan Optoelectronics Co ranks worse than 56.78% on this metric.
Sanan Optoelectronics Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -24.5%.
The historical rank and industry rank for Sanan Optoelectronics Co's Operating Margin % or its related term are showing as below:
SHSE:600703'
s Operating Margin % Range Over the Past 10 Years
Min: 4.26 Med: 16.6 Max: 45.76
Current: 4.26
SHSE:600703's Operating Margin % is ranked worse than 56.78% of 1025
companies
in the Semiconductors industry
Industry Median: 6.71
vs SHSE:600703: 4.26
Sanan Optoelectronics Co (SHSE:600703) 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.
Sanan Optoelectronics Co Operating Margin % Related Terms
Sanan Optoelectronics 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.
SHSE:600703 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Sanan Optoelectronics 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.
Sanan Optoelectronics Co Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Sanan Optoelectronics Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sanan Optoelectronics Co's Operating Margin % falls into.
Sanan Optoelectronics 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.
Sanan Optoelectronics Co's Operating Margin % for the fiscal year that ended in Dec. 2025 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.
Sanan Optoelectronics Co (SHSE:600703) has a Operating Margin % of 7.85% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sanan Optoelectronics Co and its competitors. This is 53% below median its historical median of 16.60. Over the past decade, Sanan Optoelectronics Co's Operating Margin % has ranged from 4.26 to 45.76. According to the industry distribution chart, Sanan Optoelectronics Co ranks #582 out of 1025 companies in the Semiconductors industry, placing it in the top 56.8%.
Is Sanan Optoelectronics Co's Operating Margin % too high?
Sanan Optoelectronics Co's current Operating Margin % of 7.85% is 53% below median its 10-year median of 16.60. Over the past 10 years, this metric has ranged from a low of 4.26 to a high of 45.76. The Semiconductors industry median Operating Margin % is 6.71. Sanan Optoelectronics Co's value of 7.85% is 17% above this industry median. Based on the distribution chart, Sanan Optoelectronics Co ranks #582 out of 1025 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Sanan Optoelectronics Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sanan Optoelectronics Co's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Sanan Optoelectronics Co ranks #582 out of 1025 companies for Operating Margin %. This places Sanan Optoelectronics Co in the lower half of its industry. The industry median Operating Margin % is 6.71. Sanan Optoelectronics Co's value of 7.85% is 17% above this benchmark. Historically, Sanan Optoelectronics Co's own Operating Margin % has ranged from 4.26 to 45.76 over the past decade. While the company's 10-year median is 16.60 vs. the industry median of 6.71, Sanan Optoelectronics 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 6.71, based on 1,025 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. Sanan Optoelectronics Co's current Operating Margin % of 7.85% is 17% 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 Sanan Optoelectronics Co and its competitors. For the Semiconductors industry, the median Operating Margin % is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sanan Optoelectronics Co's current Operating Margin % is 7.85%, which is 53% below median its own 10-year median of 16.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanan Optoelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Sanan Optoelectronics Co (SHSE:600703) is currently considered Fairly Valued. The stock's GF Value™ is ¥12.66, compared to a current price of ¥12.88 — trading 1.7% above its estimated fair value. The current Operating Margin % is 7.85%, which is 53% below median its 10-year median of 16.60 and 17% above the Semiconductors industry median of 6.71. Sanan Optoelectronics Co's overall GF Score™ is 73/100 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 Sanan Optoelectronics Co (SHSE:600703), the current Operating Margin % is 7.85% 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 Sanan Optoelectronics Co (SHSE:600703) Overvalued in 2026?
Based on GuruFocus' analysis, Sanan Optoelectronics Co stock appears to be overvalued.
The current stock price of ¥12.88 is trading 1.7% above its estimated GF Value™ of ¥12.66.
GuruFocus considers Sanan Optoelectronics Co to be Fairly Valued.
Key valuation signals for SHSE:600703:
Operating Margin %: 7.85% (53% below median its 10-year median of 16.60)
GF Value™: ¥12.66 vs. price of ¥12.88 (1.7% above fair value)
Industry Position: 17% above the Semiconductors median (#582 of 1025)
No single metric tells the full story. See the SHSE:600703 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sanan Optoelectronics Co Ltd is a China-based full-color ultra-high brightness LED epitaxial and chip manufacturer. It is engaged in the development, production, and sales of full-color and high-brightness LED epitaxial wafers, chips, compound solar cells, and high-powered condenser photovoltaic products. The products offered by the company are a sapphire substrate, an integrated circuit, a solar battery, an LED chip, an optical communication chip, and others. The company is also engaged in the sale of materials and waste materials, as well as the provision of other services such as leasing and property.
73GF Score
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