Arctech Solar Holding Co (SHSE:688408) Operating Margin %: 2.74% (As of Mar. 2026) — 68% Below 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:688408 Arctech Solar Holding Co Ltd SHSE:688408
75 GF Score
Price ¥24.70
GF Value ¥49.42
Valuation Possible Value Trap
! 9 Warning Signs
View Full Analysis

What is Arctech Solar Holding Co Operating Margin %?

Arctech Solar Holding Co SHSE:688408 -4.60% 75 Operating Margin % is 2.74% as of Mar. 2026, which is 68% below its 10-year median of 8.53. GuruFocus rates SHSE:688408 with a GF Score™ of 75/100 and a GF Value™ of ¥49.42 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 1,023 Semiconductors companies, Arctech Solar Holding Co ranks worse than 52% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Arctech Solar Holding Co's Operating Income for the three months ended in Mar. 2026 was ¥39 Mil. Arctech Solar Holding Co's Revenue for the three months ended in Mar. 2026 was ¥1,422 Mil. Therefore, Arctech Solar Holding Co's Operating Margin % for the quarter that ended in Mar. 2026 was 2.74%.

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

SHSE:688408' s Operating Margin % Range Over the Past 10 Years
Min: -0.47   Med: 8.53   Max: 12.08
Current: 4.69


SHSE:688408's Operating Margin % is ranked worse than
52% of 1023 companies
in the Semiconductors industry
Industry Median: 5.33 vs SHSE:688408: 4.69

Arctech Solar Holding Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Arctech Solar Holding Co's Operating Income for the three months ended in Mar. 2026 was ¥39 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥316 Mil.

Warning Sign:

Arctech Solar Holding Co Ltd has recorded a loss in operating income at least once over the past 3 years.


Arctech Solar Holding Co  (SHSE:688408) 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.


Arctech Solar Holding Co Operating Margin % Related Terms


Arctech Solar Holding Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Arctech Solar Holding Co'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.

Arctech Solar Holding Co Operating Margin % Chart

Arctech Solar Holding Co 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 -0.47 3.08 9.15 11.15 5.52

Arctech Solar Holding Co 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 6.57 7.24 -0.63 7.05 2.74

SHSE:688408 vs FSLR, NXT, ENPH: Operating Margin % Comparison

For the Solar subindustry, Arctech Solar Holding 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.


Arctech Solar Holding Co Operating Margin % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Arctech Solar Holding Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Arctech Solar Holding Co's Operating Margin % falls into.


SHSE:688408
75GF Score
Arctech Solar Holding Co Ltd SHSE:688408
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arctech Solar Holding 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.

Arctech Solar Holding Co'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 )
=379.697 / 6884.708
=5.52 %

Arctech Solar Holding Co'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 )
=38.914 / 1421.867
=2.74 %

* 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 2.74% mean?
Arctech Solar Holding Co (SHSE:688408) has a Operating Margin % of 2.74% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Arctech Solar Holding Co and its competitors. This is 68% below median its historical median of 8.53. According to the industry distribution chart, Arctech Solar Holding Co ranks #532 out of 1023 companies in the Semiconductors industry, placing it in the top 52%.
Is Arctech Solar Holding Co's Operating Margin % too high?
Arctech Solar Holding Co's current Operating Margin % of 2.74% is 68% below median its 10-year median of 8.53. The Semiconductors industry median Operating Margin % is 5.33. Arctech Solar Holding Co's value of 2.74% is 48.6% below this industry median. Based on the distribution chart, Arctech Solar Holding Co ranks #532 out of 1023 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Arctech Solar Holding Co has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arctech Solar Holding Co's Operating Margin % compare to FSLR and NXT?
According to the Semiconductors industry distribution chart, Arctech Solar Holding Co ranks #532 out of 1023 companies for Operating Margin %. This places Arctech Solar Holding Co in the lower half of its industry. The industry median Operating Margin % is 5.33. Arctech Solar Holding Co's value of 2.74% is 48.6% below this benchmark. While the company's 10-year median is 8.53 vs. the industry median of 5.33, Arctech Solar Holding 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.33, based on 1,023 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. Arctech Solar Holding Co's current Operating Margin % of 2.74% is 48.6% 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 Arctech Solar Holding Co and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arctech Solar Holding Co's current Operating Margin % is 2.74%, which is 68% below median its own 10-year median of 8.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arctech Solar Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Arctech Solar Holding Co (SHSE:688408) is currently considered Possible Value Trap. The stock's GF Value™ is ¥49.42, compared to a current price of ¥24.70 — trading 50% below its estimated fair value. The current Operating Margin % is 2.74%, which is 68% below median its 10-year median of 8.53 and 48.6% below the Semiconductors industry median of 5.33. Arctech Solar Holding Co's overall GF Score™ is 75/100 with 9 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 Arctech Solar Holding Co (SHSE:688408), the current Operating Margin % is 2.74% 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 Arctech Solar Holding Co (SHSE:688408) Overvalued in 2026?

Based on GuruFocus' analysis, Arctech Solar Holding Co stock appears to be undervalued. The current stock price of ¥24.70 is trading 50% below its estimated GF Value™ of ¥49.42. GuruFocus considers Arctech Solar Holding Co to be Possible Value Trap.

Key valuation signals for SHSE:688408:

  • Operating Margin %: 2.74% (68% below median its 10-year median of 8.53)
  • GF Value™: ¥49.42 vs. price of ¥24.70 (50% below fair value)
  • GF Score™: 75/100 with 9 warning signs
  • Industry Position: 48.6% below the Semiconductors median (#532 of 1023)

No single metric tells the full story. See the SHSE:688408 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arctech Solar Holding Co Business Description

Address 2388 Huangpujiang Middle Road, Lujia Town, Jiangsu Province, Kunshan, CHN, 215331
Arctech Solar Holding Co Ltd is engaged in design, production and sales of photovoltaic brackets. The company manufacturers and provides solutions for solar tracking and racking systems for utilities, commercial, industrial and residential projects. Its products under Tracker include Skyline Tracking System; SkySmart Tracking System; Arctracker Pro with tilted modules; Tilt single axis tracker; and products under Mounting structure include Seasonal Tilt; Dual Pole Solutions; and Single Pole Solutions.
75GF Score

Get the complete analysis for SHSE:688408

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

¥24.70
Price
¥49.42
GF Value