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Shanghai Huafon AluminiumSHSE:601702 +2.16%89 Operating Margin % is 10.69% as of Mar. 2026, which is 1% above its 10-year median of 10.63. GuruFocus rates SHSE:601702 with a GF Score™ of 89/100 and a GF Value™ of ¥22.85 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 841 Metals & Mining companies, Shanghai Huafon Aluminium ranks better than 60.4% on this metric.
Shanghai Huafon Aluminium Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Shanghai Huafon Aluminium's Operating Margin % or its related term are showing as below:
SHSE:601702'
s Operating Margin % Range Over the Past 10 Years
Min: 9.12 Med: 10.63 Max: 13.04
Current: 11.35
SHSE:601702's Operating Margin % is ranked better than 60.4% of 841
companies
in the Metals & Mining industry
Industry Median: 5.79
vs SHSE:601702: 11.35
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.
Shanghai Huafon Aluminium Operating Margin % Related Terms
Shanghai Huafon Aluminium 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.
For the Aluminum subindustry, Shanghai Huafon Aluminium'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.
Shanghai Huafon Aluminium Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Shanghai Huafon Aluminium's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Huafon Aluminium's Operating Margin % falls into.
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.
Shanghai Huafon Aluminium'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.
Shanghai Huafon Aluminium (SHSE:601702) has a Operating Margin % of 10.69% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shanghai Huafon Aluminium and its competitors. This is near median its historical median of 10.63. Over the past decade, Shanghai Huafon Aluminium's Operating Margin % has ranged from 9.12 to 13.04. According to the industry distribution chart, Shanghai Huafon Aluminium ranks #333 out of 841 companies in the Metals & Mining industry, placing it in the top 39.6%.
Is Shanghai Huafon Aluminium's Operating Margin % too high?
Shanghai Huafon Aluminium's current Operating Margin % of 10.69% is near median its 10-year median of 10.63. Over the past 10 years, this metric has ranged from a low of 9.12 to a high of 13.04. The Metals & Mining industry median Operating Margin % is 5.79. Shanghai Huafon Aluminium's value of 10.69% is 84.6% above this industry median. Based on the distribution chart, Shanghai Huafon Aluminium ranks #333 out of 841 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Shanghai Huafon Aluminium has a GF Score™ of 89/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shanghai Huafon Aluminium's Operating Margin % compare to AA?
According to the Metals & Mining industry distribution chart, Shanghai Huafon Aluminium ranks #333 out of 841 companies for Operating Margin %. This puts Shanghai Huafon Aluminium in the upper half of its industry. The industry median Operating Margin % is 5.79. Shanghai Huafon Aluminium's value of 10.69% is 84.6% above this benchmark. Historically, Shanghai Huafon Aluminium's own Operating Margin % has ranged from 9.12 to 13.04 over the past decade. While the company's 10-year median is 10.63 vs. the industry median of 5.79, Shanghai Huafon Aluminium 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 Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.79, based on 841 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. Shanghai Huafon Aluminium's current Operating Margin % of 10.69% is 84.6% 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 Shanghai Huafon Aluminium and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Huafon Aluminium's current Operating Margin % is 10.69%, which is near median its own 10-year median of 10.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Huafon Aluminium stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Huafon Aluminium (SHSE:601702) is currently considered Possible Value Trap. The stock's GF Value™ is ¥22.85, compared to a current price of ¥14.66 — trading 35.8% below its estimated fair value. The current Operating Margin % is 10.69%, which is near median its 10-year median of 10.63 and 84.6% above the Metals & Mining industry median of 5.79. Shanghai Huafon Aluminium's overall GF Score™ is 89/100 with 3 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 Shanghai Huafon Aluminium (SHSE:601702), the current Operating Margin % is 10.69% 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 Shanghai Huafon Aluminium (SHSE:601702) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Huafon Aluminium stock appears to be undervalued.
The current stock price of ¥14.66 is trading 35.8% below its estimated GF Value™ of ¥22.85.
GuruFocus considers Shanghai Huafon Aluminium to be Possible Value Trap.
Key valuation signals for SHSE:601702:
Operating Margin %: 10.69% (near median its 10-year median of 10.63)
GF Value™: ¥22.85 vs. price of ¥14.66 (35.8% below fair value)
Industry Position: 84.6% above the Metals & Mining median (#333 of 841)
No single metric tells the full story. See the SHSE:601702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Huafon Aluminium Corp is engaged in production and sales of aluminum sheet, strip and foil. The company's products include brazed heat exchangers material; water tanks, heaters, air coolers; condenser; evaporator, heater, oil cooler; and Other Industrial Products Materials. Its products line covers all kinds of alloyed material and specifications which is widely used in the automobile and construction machinery and equipment cooling systems, power station cooling system, micro-channel cooler and all kinds of both commercial and residential air-conditioners. It also processes all kinds of aluminum products processing 1,3,4,5,7 series, which are widely used in transportation construction, food packaging, electronics information industry and other fields.
89GF Score
Get the complete analysis for SHSE:601702
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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