Wafer Works (Shanghai) Co (SHSE:688584) Operating Margin %: 10.57% (As of Mar. 2026) — 15% Below Median

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SHSE:688584 Wafer Works (Shanghai) Co Ltd SHSE:688584
35 GF Score
Price ¥29.71
! 4 Warning Signs
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What is Wafer Works (Shanghai) Co Operating Margin %?

Wafer Works (Shanghai) Co SHSE:688584 +2.13% 35 Operating Margin % is 10.57% as of Mar. 2026, which is 15% below its 10-year median of 12.43. GuruFocus rates SHSE:688584 with a GF Score™ of 35/100. The stock has 4 warning signs investors should review. Among 1,022 Semiconductors companies, Wafer Works (Shanghai) Co ranks better than 68.1% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Wafer Works (Shanghai) Co's Operating Income for the three months ended in Mar. 2026 was ¥30 Mil. Wafer Works (Shanghai) Co's Revenue for the three months ended in Mar. 2026 was ¥280 Mil. Therefore, Wafer Works (Shanghai) Co's Operating Margin % for the quarter that ended in Mar. 2026 was 10.57%.

Good Sign:

Wafer Works (Shanghai) Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Wafer Works (Shanghai) Co's Operating Margin % or its related term are showing as below:

SHSE:688584' s Operating Margin % Range Over the Past 10 Years
Min: 1.27   Med: 12.43   Max: 29.89
Current: 12.49


SHSE:688584's Operating Margin % is ranked better than
68.1% of 1022 companies
in the Semiconductors industry
Industry Median: 5.425 vs SHSE:688584: 12.49

Wafer Works (Shanghai) Co's 5-Year Average Operating Margin % Growth Rate was 4.20% per year.

Wafer Works (Shanghai) Co's Operating Income for the three months ended in Mar. 2026 was ¥30 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥164 Mil.


Wafer Works (Shanghai) Co  (SHSE:688584) 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.


Wafer Works (Shanghai) Co Operating Margin % Related Terms


Wafer Works (Shanghai) Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Wafer Works (Shanghai) 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.

Wafer Works (Shanghai) Co Operating Margin % Chart

Wafer Works (Shanghai) Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only 22.27 29.89 22.08 12.43 11.41

Wafer Works (Shanghai) Co Quarterly Data
Dec19 Dec20 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 5.52 13.92 14.22 10.50 10.57

SHSE:688584 vs AMAT, LRCX, KLAC: Operating Margin % Comparison

For the Semiconductor Equipment & Materials subindustry, Wafer Works (Shanghai) 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.


Wafer Works (Shanghai) Co Operating Margin % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Wafer Works (Shanghai) Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Wafer Works (Shanghai) Co's Operating Margin % falls into.


SHSE:688584
35GF Score
Wafer Works (Shanghai) Co Ltd SHSE:688584
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Wafer Works (Shanghai) 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.

Wafer Works (Shanghai) 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 )
=149.686 / 1311.342
=11.41 %

Wafer Works (Shanghai) 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 )
=29.589 / 280.032
=10.57 %

* 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 10.57% mean?
Wafer Works (Shanghai) Co (SHSE:688584) has a Operating Margin % of 10.57% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Wafer Works (Shanghai) Co and its competitors. This is 15% below median its historical median of 12.43. Over the past decade, Wafer Works (Shanghai) Co's Operating Margin % has ranged from 1.27 to 29.89. According to the industry distribution chart, Wafer Works (Shanghai) Co ranks #326 out of 1022 companies in the Semiconductors industry, placing it in the top 31.9%.
Is Wafer Works (Shanghai) Co's Operating Margin % too high?
Wafer Works (Shanghai) Co's current Operating Margin % of 10.57% is 15% below median its 10-year median of 12.43. Over the past 10 years, this metric has ranged from a low of 1.27 to a high of 29.89. The Semiconductors industry median Operating Margin % is 5.43. Wafer Works (Shanghai) Co's value of 10.57% is 94.8% above this industry median. Based on the distribution chart, Wafer Works (Shanghai) Co ranks #326 out of 1022 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Wafer Works (Shanghai) Co has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does Wafer Works (Shanghai) Co's Operating Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Wafer Works (Shanghai) Co ranks #326 out of 1022 companies for Operating Margin %. This puts Wafer Works (Shanghai) Co in the upper half of its industry. The industry median Operating Margin % is 5.43. Wafer Works (Shanghai) Co's value of 10.57% is 94.8% above this benchmark. Historically, Wafer Works (Shanghai) Co's own Operating Margin % has ranged from 1.27 to 29.89 over the past decade. While the company's 10-year median is 12.43 vs. the industry median of 5.43, Wafer Works (Shanghai) 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 5.43, based on 1,022 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. Wafer Works (Shanghai) Co's current Operating Margin % of 10.57% is 94.8% 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 Wafer Works (Shanghai) Co and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wafer Works (Shanghai) Co's current Operating Margin % is 10.57%, which is 15% below median its own 10-year median of 12.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wafer Works (Shanghai) Co stock overvalued right now?
Wafer Works (Shanghai) Co (SHSE:688584) has a current Operating Margin % of 10.57%. The current Operating Margin % is 10.57%, which is 15% below median its 10-year median of 12.43 and 94.8% above the Semiconductors industry median of 5.43. Wafer Works (Shanghai) Co's overall GF Score™ is 35/100 with 4 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 Wafer Works (Shanghai) Co (SHSE:688584), the current Operating Margin % is 10.57% 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.

Wafer Works (Shanghai) Co Business Description

Address Changta Road, No. 558, Shihudang Town, Songjiang District, Shanghai, CHN, 201617
Wafer Works (Shanghai) Co Ltd is engaged in the manufacturing of semiconductor silicon epitaxial wafers in China. Its main products are semiconductor silicon epitaxial wafers and is mainly used to prepare power devices and analog chips, and are widely used in automobiles, communications, electric power, industry, consumer electronics, high-end equipment, and other fields.
35GF Score

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

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