HitGen (SHSE:688222) Operating Margin %: 30.98% (As of Mar. 2026) — 96% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SHSE:688222 HitGen Inc SHSE:688222
90 GF Score
Price ¥29.16
GF Value ¥26.07
Valuation Modestly Overvalued
! 1 Warning Sign
View Full Analysis

What is HitGen Operating Margin %?

HitGen SHSE:688222 +3.04% 90 Operating Margin % is 30.98% as of Mar. 2026, which is 96% above its 10-year median of 15.80. GuruFocus rates SHSE:688222 with a GF Score™ of 90/100 and a GF Value™ of ¥26.07 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 940 Biotechnology companies, HitGen ranks better than 91.81% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. HitGen's Operating Income for the three months ended in Mar. 2026 was ¥49.7 Mil. HitGen's Revenue for the three months ended in Mar. 2026 was ¥160.5 Mil. Therefore, HitGen's Operating Margin % for the quarter that ended in Mar. 2026 was 30.98%.

The historical rank and industry rank for HitGen's Operating Margin % or its related term are showing as below:

SHSE:688222' s Operating Margin % Range Over the Past 10 Years
Min: -204.32   Med: 15.8   Max: 46.95
Current: 26.59


SHSE:688222's Operating Margin % is ranked better than
91.81% of 940 companies
in the Biotechnology industry
Industry Median: -86.19 vs SHSE:688222: 26.59

HitGen's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

HitGen's Operating Income for the three months ended in Mar. 2026 was ¥49.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥154.1 Mil.


HitGen  (SHSE:688222) 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 Nokia’s 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.


HitGen Operating Margin % Related Terms


HitGen Operating Margin % Historical Data

* Premium members only.

The historical data trend for HitGen's Operating Margin % can be seen below:

* 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.

HitGen Operating Margin % Chart

HitGen Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.33 -1.52 9.24 20.27 25.26

HitGen Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.60 27.93 32.31 15.80 30.98

SHSE:688222 vs VRTX, REGN, ALNY: Operating Margin % Comparison

For the Biotechnology subindustry, HitGen'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.


HitGen Operating Margin % vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, HitGen's Operating Margin % distribution charts can be found below:

* The bar in red indicates where HitGen's Operating Margin % falls into.


SHSE:688222
90GF Score
HitGen Inc SHSE:688222
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

HitGen 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.

HitGen's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=132.735 / 525.572
=25.26 %

HitGen's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=49.733 / 160.536
=30.98 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 30.98% mean?
HitGen (SHSE:688222) has a Operating Margin % of 30.98% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on HitGen and its competitors. This is 96% above median its historical median of 15.80. According to the industry distribution chart, HitGen ranks #77 out of 940 companies in the Biotechnology industry, placing it in the top 8.2%.
Is HitGen's Operating Margin % too high?
HitGen's current Operating Margin % of 30.98% is 96% above median its 10-year median of 15.80. Based on the distribution chart, HitGen ranks #77 out of 940 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, HitGen has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HitGen's Operating Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, HitGen ranks #77 out of 940 companies for Operating Margin %. This places HitGen in the top 8% of its industry — outperforming the majority of peers. 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 Biotechnology company?
A good Operating Margin % depends on the Biotechnology industry context. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 HitGen and its competitors. HitGen's current Operating Margin % is 30.98%, which is 96% above median its own 10-year median of 15.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HitGen stock overvalued right now?
Based on GuruFocus' analysis, HitGen (SHSE:688222) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥26.07, compared to a current price of ¥29.16 — trading 11.9% above its estimated fair value. The current Operating Margin % is 30.98%, which is 96% above median its 10-year median of 15.80. HitGen's overall GF Score™ is 90/100 with 1 warning sign 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 HitGen (SHSE:688222), the current Operating Margin % is 30.98% 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 HitGen (SHSE:688222) Overvalued in 2026?

Based on GuruFocus' analysis, HitGen stock appears to be overvalued. The current stock price of ¥29.16 is trading 11.9% above its estimated GF Value™ of ¥26.07. GuruFocus considers HitGen to be Modestly Overvalued.

Key valuation signals for SHSE:688222:

  • Operating Margin %: 30.98% (96% above median its 10-year median of 15.80)
  • GF Value™: ¥26.07 vs. price of ¥29.16 (11.9% above fair value)
  • GF Score™: 90/100 with 1 warning sign

No single metric tells the full story. See the SHSE:688222 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


HitGen Business Description

Address Section 2, Biocity Middle Road, Chengdu Tianfu International Biological City, No. 18, Shuangliu District, Sichuan Province, Chengdu, CHN, 610093
HitGen Inc is dedicated to building a world-class biopharmaceutical enterprise. Its mission is to advance human health and quality of life. It provides therapeutic solutions to address unmet medical needs. Centered on its internationally DEL (DNA-encoded Library) technology, the Company has expanded into Fragment-Based Drug Discovery and Structure-Based Drug Design and a suite of complementary platforms based on Oligonucleotide-based Therapeutics, Targeted Proximity Drugs, and Cyclic Peptidomimetics. The group has developed HAILO, a proprietary "DEL+AI+Automation" molecular optimization platform, thereby establishing a distinctive novel molecule discovery engine that delivers both therapeutic molecules and tool molecules to the world-wide pharmaceutical industry.
90GF Score

Get the complete analysis for SHSE:688222

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥29.16
Price
¥26.07
GF Value