Lim Seong Hai Capital BhdXKLS:0351 +1.16%86 Operating Margin % is 32.26% as of Mar. 2026, which is 46% above its 10-year median of 22.05. GuruFocus rates XKLS:0351 with a GF Score™ of 86/100 and a GF Value™ of RM1.31 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,762 Construction companies, Lim Seong Hai Capital Bhd ranks better than 96.14% on this metric.
Lim Seong Hai Capital Bhd (XKLS:0351) 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 Nokias 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.
Lim Seong Hai Capital Bhd Operating Margin % Related Terms
Lim Seong Hai Capital Bhd Operating Margin % Historical Data
* 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.
Lim Seong Hai Capital Bhd Operating Margin % Chart
XKLS:0351 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Lim Seong Hai Capital Bhd'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.
Lim Seong Hai Capital Bhd Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Lim Seong Hai Capital Bhd's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lim Seong Hai Capital Bhd's Operating Margin % falls into.
Lim Seong Hai Capital Bhd 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.
Lim Seong Hai Capital Bhd's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as
* 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.
Lim Seong Hai Capital Bhd (XKLS:0351) has a Operating Margin % of 32.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Lim Seong Hai Capital Bhd and its competitors. This is 46% above median its historical median of 22.05. Over the past decade, Lim Seong Hai Capital Bhd's Operating Margin % has ranged from 12.83 to 33.42. According to the industry distribution chart, Lim Seong Hai Capital Bhd ranks #68 out of 1762 companies in the Construction industry, placing it in the top 3.9%.
Is Lim Seong Hai Capital Bhd's Operating Margin % too high?
Lim Seong Hai Capital Bhd's current Operating Margin % of 32.26% is 46% above median its 10-year median of 22.05. Over the past 10 years, this metric has ranged from a low of 12.83 to a high of 33.42. The Construction industry median Operating Margin % is 5.89. Lim Seong Hai Capital Bhd's value of 32.26% is 447.7% above this industry median. Based on the distribution chart, Lim Seong Hai Capital Bhd ranks #68 out of 1762 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Lim Seong Hai Capital Bhd has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lim Seong Hai Capital Bhd's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Lim Seong Hai Capital Bhd ranks #68 out of 1762 companies for Operating Margin %. This places Lim Seong Hai Capital Bhd in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Lim Seong Hai Capital Bhd's value of 32.26% is 447.7% above this benchmark. Historically, Lim Seong Hai Capital Bhd's own Operating Margin % has ranged from 12.83 to 33.42 over the past decade. While the company's 10-year median is 22.05 vs. the industry median of 5.89, Lim Seong Hai Capital Bhd 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,762 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. Lim Seong Hai Capital Bhd's current Operating Margin % of 32.26% is 447.7% 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 Lim Seong Hai Capital Bhd and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lim Seong Hai Capital Bhd's current Operating Margin % is 32.26%, which is 46% above median its own 10-year median of 22.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lim Seong Hai Capital Bhd stock overvalued right now?
Based on GuruFocus' analysis, Lim Seong Hai Capital Bhd (XKLS:0351) is currently considered Significantly Overvalued. The stock's GF Value™ is RM1.31, compared to a current price of RM1.75 — trading 33.6% above its estimated fair value. The current Operating Margin % is 32.26%, which is 46% above median its 10-year median of 22.05 and 447.7% above the Construction industry median of 5.89. Lim Seong Hai Capital Bhd's overall GF Score™ is 86/100 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 Lim Seong Hai Capital Bhd (XKLS:0351), the current Operating Margin % is 32.26% 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 Lim Seong Hai Capital Bhd (XKLS:0351) Overvalued in 2026?
Based on GuruFocus' analysis, Lim Seong Hai Capital Bhd stock appears to be overvalued.
The current stock price of RM1.75 is trading 33.6% above its estimated GF Value™ of RM1.31.
GuruFocus considers Lim Seong Hai Capital Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:0351:
Operating Margin %: 32.26% (46% above median its 10-year median of 22.05)
GF Value™: RM1.31 vs. price of RM1.75 (33.6% above fair value)
Industry Position: 447.7% above the Construction median (#68 of 1762)
No single metric tells the full story. See the XKLS:0351 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lim Seong Hai Capital Bhd is an investment holding company. Along with its subsidiaries, the company is engaged in the following reportable segments: i) distribution and/or retail of building materials, lighting products and related mechanical and electrical products and services, ii) wholesale and retail of hardware and tools, and rental of machinery, iii) investment holding, iv) business of construction, v) provision of construction and business related services & solutions, vi) property development, vii) facilities management, and viii) companies which are in dormant status. The majority of the company's revenue is derived from the property development segment. Geographically, the company operates predominantly in Malaysia.
86GF Score
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