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North China Pharmaceutical Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for North China Pharmaceutical Co's Operating Margin % or its related term are showing as below:
SHSE:600812'
s Operating Margin % Range Over the Past 10 Years
Min: 2.96 Med: 6.9 Max: 7.41
Current: 6.99
SHSE:600812's Operating Margin % is ranked worse than 51.72% of 959
companies
in the Drug Manufacturers industry
Industry Median: 7.57
vs SHSE:600812: 6.99
North China Pharmaceutical Co (SHSE:600812) 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.
North China Pharmaceutical Co Operating Margin % Related Terms
North China Pharmaceutical 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.
North China Pharmaceutical Co Operating Margin % Chart
SHSE:600812 vs ZTS, UTHR: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, North China Pharmaceutical 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.
North China Pharmaceutical Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, North China Pharmaceutical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where North China Pharmaceutical Co's Operating Margin % falls into.
North China Pharmaceutical 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.
North China Pharmaceutical Co (SHSE:600812) has a Operating Margin % of 7.00% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on North China Pharmaceutical Co and its competitors. This is near median its historical median of 6.90. Over the past decade, North China Pharmaceutical Co's Operating Margin % has ranged from 2.96 to 7.41. According to the industry distribution chart, North China Pharmaceutical Co ranks #496 out of 959 companies in the Drug Manufacturers industry, placing it in the top 51.7%.
Is North China Pharmaceutical Co's Operating Margin % too high?
North China Pharmaceutical Co's current Operating Margin % of 7.00% is near median its 10-year median of 6.90. Over the past 10 years, this metric has ranged from a low of 2.96 to a high of 7.41. The Drug Manufacturers industry median Operating Margin % is 7.57. North China Pharmaceutical Co's value of 7.00% is 7.5% below this industry median. Based on the distribution chart, North China Pharmaceutical Co ranks #496 out of 959 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, North China Pharmaceutical Co has a GF Score™ of 45/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does North China Pharmaceutical Co's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, North China Pharmaceutical Co ranks #496 out of 959 companies for Operating Margin %. This places North China Pharmaceutical Co in the lower half of its industry. The industry median Operating Margin % is 7.57. North China Pharmaceutical Co's value of 7.00% is 7.5% below this benchmark. Historically, North China Pharmaceutical Co's own Operating Margin % has ranged from 2.96 to 7.41 over the past decade. While the company's 10-year median is 6.90 vs. the industry median of 7.57, North China Pharmaceutical Co has consistently been below 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.57, based on 959 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. North China Pharmaceutical Co's current Operating Margin % of 7.00% is 7.5% below 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 North China Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. North China Pharmaceutical Co's current Operating Margin % is 7.00%, which is near median its own 10-year median of 6.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is North China Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, North China Pharmaceutical Co (SHSE:600812) is currently considered Fairly Valued. The stock's GF Value™ is ¥4.86, compared to a current price of ¥4.76 — trading 2.1% below its estimated fair value. The current Operating Margin % is 7.00%, which is near median its 10-year median of 6.90 and 7.5% below the Drug Manufacturers industry median of 7.57. North China Pharmaceutical Co's overall GF Score™ is 45/100 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 North China Pharmaceutical Co (SHSE:600812), the current Operating Margin % is 7.00% 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 North China Pharmaceutical Co (SHSE:600812) Overvalued in 2026?
Based on GuruFocus' analysis, North China Pharmaceutical Co stock appears to be undervalued.
The current stock price of ¥4.76 is trading 2.1% below its estimated GF Value™ of ¥4.86.
GuruFocus considers North China Pharmaceutical Co to be Fairly Valued.
Key valuation signals for SHSE:600812:
Operating Margin %: 7.00% (near median its 10-year median of 6.90)
GF Value™: ¥4.86 vs. price of ¥4.76 (2.1% below fair value)
Industry Position: 7.5% below the Drug Manufacturers median (#496 of 959)
No single metric tells the full story. See the SHSE:600812 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
North China Pharmaceutical Co Business Description
North China Pharmaceutical Co Ltd is engaged in the manufacture and sale of antibiotics, vitamins, and pharmaceutical products in China. The main products include antibiotics such as penicillin, vitamins, cephalosporins, streptomycin, biotechnological drugs, new preparations, and biological products.
45GF Score
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