Shandong Liancheng Precision Manufacturing Co (SZSE:002921) Operating Margin %: 3.61% (As of Mar. 2026) — 62% Below Median

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SZSE:002921 Shandong Liancheng Precision Manufacturing Co Ltd SZSE:002921
62 GF Score
Price ¥21.18
GF Value ¥15.56
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Shandong Liancheng Precision Manufacturing Co Operating Margin %?

Shandong Liancheng Precision Manufacturing Co SZSE:002921 +4.39% 62 Operating Margin % is 3.61% as of Mar. 2026, which is 62% below its 10-year median of 9.59. GuruFocus rates SZSE:002921 with a GF Score™ of 62/100 and a GF Value™ of ¥15.56 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,036 Industrial Products companies, Shandong Liancheng Precision Manufacturing Co ranks worse than 72.56% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shandong Liancheng Precision Manufacturing Co's Operating Income for the three months ended in Mar. 2026 was ¥12 Mil. Shandong Liancheng Precision Manufacturing Co's Revenue for the three months ended in Mar. 2026 was ¥320 Mil. Therefore, Shandong Liancheng Precision Manufacturing Co's Operating Margin % for the quarter that ended in Mar. 2026 was 3.61%.

Warning Sign:

Shandong Liancheng Precision Manufacturing Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -49.4%.

The historical rank and industry rank for Shandong Liancheng Precision Manufacturing Co's Operating Margin % or its related term are showing as below:

SZSE:002921' s Operating Margin % Range Over the Past 10 Years
Min: 0.51   Med: 9.59   Max: 13.4
Current: 1.57


SZSE:002921's Operating Margin % is ranked worse than
72.56% of 3036 companies
in the Industrial Products industry
Industry Median: 6.46 vs SZSE:002921: 1.57

Shandong Liancheng Precision Manufacturing Co's 5-Year Average Operating Margin % Growth Rate was -49.40% per year.

Shandong Liancheng Precision Manufacturing Co's Operating Income for the three months ended in Mar. 2026 was ¥12 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥19 Mil.


Shandong Liancheng Precision Manufacturing Co  (SZSE:002921) 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.


Shandong Liancheng Precision Manufacturing Co Operating Margin % Related Terms


Shandong Liancheng Precision Manufacturing Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Shandong Liancheng Precision Manufacturing 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.

Shandong Liancheng Precision Manufacturing Co Operating Margin % Chart

Shandong Liancheng Precision Manufacturing 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 10.28 5.70 4.79 0.89 0.51

Shandong Liancheng Precision Manufacturing 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 -0.64 1.70 0.56 0.30 3.61

SZSE:002921 vs CRS, ATI, MLI: Operating Margin % Comparison

For the Metal Fabrication subindustry, Shandong Liancheng Precision Manufacturing 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.


Shandong Liancheng Precision Manufacturing Co Operating Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shandong Liancheng Precision Manufacturing Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Shandong Liancheng Precision Manufacturing Co's Operating Margin % falls into.


SZSE:002921
62GF Score
Shandong Liancheng Precision Manufacturing Co Ltd SZSE:002921
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shandong Liancheng Precision Manufacturing 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.

Shandong Liancheng Precision Manufacturing 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 )
=5.887 / 1157.836
=0.51 %

Shandong Liancheng Precision Manufacturing 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 )
=11.565 / 320.355
=3.61 %

* 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 3.61% mean?
Shandong Liancheng Precision Manufacturing Co (SZSE:002921) has a Operating Margin % of 3.61% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shandong Liancheng Precision Manufacturing Co and its competitors. This is 62% below median its historical median of 9.59. Over the past decade, Shandong Liancheng Precision Manufacturing Co's Operating Margin % has ranged from 0.51 to 13.40. According to the industry distribution chart, Shandong Liancheng Precision Manufacturing Co ranks #2203 out of 3036 companies in the Industrial Products industry, placing it in the top 72.6%.
Is Shandong Liancheng Precision Manufacturing Co's Operating Margin % too high?
Shandong Liancheng Precision Manufacturing Co's current Operating Margin % of 3.61% is 62% below median its 10-year median of 9.59. Over the past 10 years, this metric has ranged from a low of 0.51 to a high of 13.40. The Industrial Products industry median Operating Margin % is 6.46. Shandong Liancheng Precision Manufacturing Co's value of 3.61% is 44.1% below this industry median. Based on the distribution chart, Shandong Liancheng Precision Manufacturing Co ranks #2203 out of 3036 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shandong Liancheng Precision Manufacturing Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Liancheng Precision Manufacturing Co's Operating Margin % compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Shandong Liancheng Precision Manufacturing Co ranks #2203 out of 3036 companies for Operating Margin %. This places Shandong Liancheng Precision Manufacturing Co in the lower half of its industry. The industry median Operating Margin % is 6.46. Shandong Liancheng Precision Manufacturing Co's value of 3.61% is 44.1% below this benchmark. Historically, Shandong Liancheng Precision Manufacturing Co's own Operating Margin % has ranged from 0.51 to 13.40 over the past decade. While the company's 10-year median is 9.59 vs. the industry median of 6.46, Shandong Liancheng Precision Manufacturing 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.46, based on 3,036 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. Shandong Liancheng Precision Manufacturing Co's current Operating Margin % of 3.61% is 44.1% 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 Shandong Liancheng Precision Manufacturing Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Liancheng Precision Manufacturing Co's current Operating Margin % is 3.61%, which is 62% below median its own 10-year median of 9.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Liancheng Precision Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Liancheng Precision Manufacturing Co (SZSE:002921) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥15.56, compared to a current price of ¥21.18 — trading 36.1% above its estimated fair value. The current Operating Margin % is 3.61%, which is 62% below median its 10-year median of 9.59 and 44.1% below the Industrial Products industry median of 6.46. Shandong Liancheng Precision Manufacturing Co's overall GF Score™ is 62/100 with 5 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 Shandong Liancheng Precision Manufacturing Co (SZSE:002921), the current Operating Margin % is 3.61% 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 Shandong Liancheng Precision Manufacturing Co (SZSE:002921) Overvalued in 2026?

Based on GuruFocus' analysis, Shandong Liancheng Precision Manufacturing Co stock appears to be overvalued. The current stock price of ¥21.18 is trading 36.1% above its estimated GF Value™ of ¥15.56. GuruFocus considers Shandong Liancheng Precision Manufacturing Co to be Significantly Overvalued.

Key valuation signals for SZSE:002921:

  • Operating Margin %: 3.61% (62% below median its 10-year median of 9.59)
  • GF Value™: ¥15.56 vs. price of ¥21.18 (36.1% above fair value)
  • GF Score™: 62/100 with 5 warning signs
  • Industry Position: 44.1% below the Industrial Products median (#2203 of 3036)

No single metric tells the full story. See the SZSE:002921 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shandong Liancheng Precision Manufacturing Co Business Description

Address 6 Chuangye Road, Economic Development Zone, Yanzhou, CHN, 272100
Shandong Liancheng Precision Manufacturing Co Ltd is a China-based company, engages in the development, design, production, and sales of precision castings, such as high-strength ductile iron and aluminum alloy castings. Its main products are automobile pump shell, frame, flange, damping wheel/ring, oil pump shell and others. Its products are used in passenger cars, commercial vehicles, diesel engines, construction machinery, commercial compressors, hydraulic machinery and other industries or fields.
62GF Score

Get the complete analysis for SZSE:002921

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

¥21.18
Price
¥15.56
GF Value