Shenzhen Kaizhong Precision Technology Co (SZSE:002823) Operating Margin %: 10.40% (As of Jun. 2026) — 22% Above Median

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SZSE:002823 Shenzhen Kaizhong Precision Technology Co Ltd SZSE:002823
78 GF Score
Price ¥13.14
GF Value ¥13.98
Valuation Fairly Valued
! 2 Warning Signs
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What is Shenzhen Kaizhong Precision Technology Co Operating Margin %?

Shenzhen Kaizhong Precision Technology Co SZSE:002823 -0.30% 78 Operating Margin % is 10.40% as of Jun. 2026, which is 22% above its 10-year median of 8.50. GuruFocus rates SZSE:002823 with a GF Score™ of 78/100 and a GF Value™ of ¥13.98 (Fairly Valued). The stock has 2 warning signs investors should review. Among 3,044 Industrial Products companies, Shenzhen Kaizhong Precision Technology Co ranks better than 70.5% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shenzhen Kaizhong Precision Technology Co's Operating Income for the three months ended in Jun. 2026 was ¥93 Mil. Shenzhen Kaizhong Precision Technology Co's Revenue for the three months ended in Jun. 2026 was ¥895 Mil. Therefore, Shenzhen Kaizhong Precision Technology Co's Operating Margin % for the quarter that ended in Jun. 2026 was 10.40%.

Good Sign:

Shenzhen Kaizhong Precision Technology Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Shenzhen Kaizhong Precision Technology Co's Operating Margin % or its related term are showing as below:

SZSE:002823' s Operating Margin % Range Over the Past 10 Years
Min: 3.6   Med: 8.5   Max: 14.67
Current: 11.04


SZSE:002823's Operating Margin % is ranked better than
70.5% of 3044 companies
in the Industrial Products industry
Industry Median: 6.375 vs SZSE:002823: 11.04

Shenzhen Kaizhong Precision Technology Co's 5-Year Average Operating Margin % Growth Rate was 13.30% per year.

Shenzhen Kaizhong Precision Technology Co's Operating Income for the three months ended in Jun. 2026 was ¥93 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was ¥337 Mil.


Shenzhen Kaizhong Precision Technology Co  (SZSE:002823) 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.


Shenzhen Kaizhong Precision Technology Co Operating Margin % Related Terms


Shenzhen Kaizhong Precision Technology Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Shenzhen Kaizhong Precision Technology 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.

Shenzhen Kaizhong Precision Technology Co Operating Margin % Chart

Shenzhen Kaizhong Precision Technology 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 5.03 3.60 5.84 8.79 11.33

Shenzhen Kaizhong Precision Technology Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 12.13 11.17 11.56 11.19 10.40

SZSE:002823 vs SNA, RBC, LECO: Operating Margin % Comparison

For the Tools & Accessories subindustry, Shenzhen Kaizhong Precision Technology 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.


Shenzhen Kaizhong Precision Technology Co Operating Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shenzhen Kaizhong Precision Technology Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Shenzhen Kaizhong Precision Technology Co's Operating Margin % falls into.


SZSE:002823
78GF Score
Shenzhen Kaizhong Precision Technology Co Ltd SZSE:002823
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shenzhen Kaizhong Precision Technology 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.

Shenzhen Kaizhong Precision Technology 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 )
=331.678 / 2928.354
=11.33 %

Shenzhen Kaizhong Precision Technology Co's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=93.137 / 895.423
=10.40 %

* 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 10.40% mean?
Shenzhen Kaizhong Precision Technology Co (SZSE:002823) has a Operating Margin % of 10.40% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shenzhen Kaizhong Precision Technology Co and its competitors. This is 22% above median its historical median of 8.50. Over the past decade, Shenzhen Kaizhong Precision Technology Co's Operating Margin % has ranged from 3.60 to 14.67. According to the industry distribution chart, Shenzhen Kaizhong Precision Technology Co ranks #898 out of 3044 companies in the Industrial Products industry, placing it in the top 29.5%.
Is Shenzhen Kaizhong Precision Technology Co's Operating Margin % too high?
Shenzhen Kaizhong Precision Technology Co's current Operating Margin % of 10.40% is 22% above median its 10-year median of 8.50. Over the past 10 years, this metric has ranged from a low of 3.60 to a high of 14.67. The Industrial Products industry median Operating Margin % is 6.38. Shenzhen Kaizhong Precision Technology Co's value of 10.40% is 63.1% above this industry median. Based on the distribution chart, Shenzhen Kaizhong Precision Technology Co ranks #898 out of 3044 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Shenzhen Kaizhong Precision Technology Co has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Kaizhong Precision Technology Co's Operating Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Shenzhen Kaizhong Precision Technology Co ranks #898 out of 3044 companies for Operating Margin %. This puts Shenzhen Kaizhong Precision Technology Co in the upper half of its industry. The industry median Operating Margin % is 6.38. Shenzhen Kaizhong Precision Technology Co's value of 10.40% is 63.1% above this benchmark. Historically, Shenzhen Kaizhong Precision Technology Co's own Operating Margin % has ranged from 3.60 to 14.67 over the past decade. While the company's 10-year median is 8.50 vs. the industry median of 6.38, Shenzhen Kaizhong Precision Technology 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.38, based on 3,044 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. Shenzhen Kaizhong Precision Technology Co's current Operating Margin % of 10.40% is 63.1% 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 Shenzhen Kaizhong Precision Technology Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Kaizhong Precision Technology Co's current Operating Margin % is 10.40%, which is 22% above median its own 10-year median of 8.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Kaizhong Precision Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Kaizhong Precision Technology Co (SZSE:002823) is currently considered Fairly Valued. The stock's GF Value™ is ¥13.98, compared to a current price of ¥13.14 — trading 6% below its estimated fair value. The current Operating Margin % is 10.40%, which is 22% above median its 10-year median of 8.50 and 63.1% above the Industrial Products industry median of 6.38. Shenzhen Kaizhong Precision Technology Co's overall GF Score™ is 78/100 with 2 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 Shenzhen Kaizhong Precision Technology Co (SZSE:002823), the current Operating Margin % is 10.40% as of Jun. 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 Shenzhen Kaizhong Precision Technology Co (SZSE:002823) Overvalued in 2026?

Based on GuruFocus' analysis, Shenzhen Kaizhong Precision Technology Co stock appears to be undervalued. The current stock price of ¥13.14 is trading 6% below its estimated GF Value™ of ¥13.98. GuruFocus considers Shenzhen Kaizhong Precision Technology Co to be Fairly Valued.

Key valuation signals for SZSE:002823:

  • Operating Margin %: 10.40% (22% above median its 10-year median of 8.50)
  • GF Value™: ¥13.98 vs. price of ¥13.14 (6% below fair value)
  • GF Score™: 78/100 with 2 warning signs
  • Industry Position: 63.1% above the Industrial Products median (#898 of 3044)

No single metric tells the full story. See the SZSE:002823 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shenzhen Kaizhong Precision Technology Co Business Description

Address No. 1, Planning 4th Road, Longtian Street, Pingshan District, Guangdong Province, Shenzhen, CHN, 518118
Shenzhen Kaizhong Precision Technology Co Ltd operates in the Chinese commutator industry. The company is specialized in the research and development and production of various types of quality commutators, slip rings, connectors, battery accessories, lightweight parts, high-strength and elastic parts, multi-layer insulated wires and other core precision parts for motor and electrical control system. Its products are widely applied in automotive, aerospace, household appliances, power tools and medical devices.
78GF Score

Get the complete analysis for SZSE:002823

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

¥13.14
Price
¥13.98
GF Value