South Malaysia Industries Bhd (XKLS:4375) Operating Margin %: 20.58% (As of Mar. 2026)


XKLS:4375 South Malaysia Industries Bhd XKLS:4375
36 GF Score
Price RM0.21
GF Value RM0.36
Valuation Possible Value Trap
! 3 Warning Signs
View Full Analysis

What is South Malaysia Industries Bhd Operating Margin %?

South Malaysia Industries Bhd XKLS:4375 36 Operating Margin % is 20.58% as of Mar. 2026. GuruFocus rates XKLS:4375 with a GF Score™ of 36/100 and a GF Value™ of RM0.36 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 3,038 Industrial Products companies, South Malaysia Industries Bhd ranks better than 99.67% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. South Malaysia Industries Bhd's Operating Income for the three months ended in Mar. 2026 was RM1.69 Mil. South Malaysia Industries Bhd's Revenue for the three months ended in Mar. 2026 was RM8.23 Mil. Therefore, South Malaysia Industries Bhd's Operating Margin % for the quarter that ended in Mar. 2026 was 20.58%.

The historical rank and industry rank for South Malaysia Industries Bhd's Operating Margin % or its related term are showing as below:

XKLS:4375' s Operating Margin % Range Over the Past 10 Years
Min: -12.19   Med: -1.74   Max: 49.84
Current: 44.35


XKLS:4375's Operating Margin % is ranked better than
99.67% of 3038 companies
in the Industrial Products industry
Industry Median: 6.53 vs XKLS:4375: 44.35

South Malaysia Industries Bhd's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

South Malaysia Industries Bhd's Operating Income for the three months ended in Mar. 2026 was RM1.69 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was RM14.11 Mil.


South Malaysia Industries Bhd  (XKLS:4375) 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.


South Malaysia Industries Bhd Operating Margin % Related Terms


South Malaysia Industries Bhd Operating Margin % Historical Data

* Premium members only.

The historical data trend for South Malaysia Industries Bhd'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.

South Malaysia Industries Bhd Operating Margin % Chart

South Malaysia Industries Bhd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Jun24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -9.96 12.03 -1.82 -6.46 -5.68

South Malaysia Industries Bhd Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 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 -30.24 137.34 24.40 -5.31 20.58

XKLS:4375 vs VRT, BE: Operating Margin % Comparison

For the Electrical Equipment & Parts subindustry, South Malaysia Industries 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.


South Malaysia Industries Bhd Operating Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, South Malaysia Industries Bhd's Operating Margin % distribution charts can be found below:

* The bar in red indicates where South Malaysia Industries Bhd's Operating Margin % falls into.


XKLS:4375
36GF Score
South Malaysia Industries Bhd XKLS:4375
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

South Malaysia Industries 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.

South Malaysia Industries Bhd's Operating Margin % for the fiscal year that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=-1.955 / 34.448
=-5.68 %

South Malaysia Industries Bhd'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 )
=1.694 / 8.231
=20.58 %

* 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 20.58% mean?
South Malaysia Industries Bhd (XKLS:4375) has a Operating Margin % of 20.58% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on South Malaysia Industries Bhd and its competitors. According to the industry distribution chart, South Malaysia Industries Bhd ranks #10 out of 3038 companies in the Industrial Products industry, placing it in the top 0.3%.
Is South Malaysia Industries Bhd's Operating Margin % too high?
South Malaysia Industries Bhd's current Operating Margin % is 20.58%. The Industrial Products industry median Operating Margin % is 6.53. South Malaysia Industries Bhd's value of 20.58% is 215.2% above this industry median. Based on the distribution chart, South Malaysia Industries Bhd ranks #10 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, South Malaysia Industries Bhd has a GF Score™ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does South Malaysia Industries Bhd's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, South Malaysia Industries Bhd ranks #10 out of 3038 companies for Operating Margin %. This places South Malaysia Industries Bhd in the top 0% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. South Malaysia Industries Bhd's value of 20.58% is 215.2% above this benchmark. 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 6.53, based on 3,038 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. South Malaysia Industries Bhd's current Operating Margin % of 20.58% is 215.2% 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 South Malaysia Industries Bhd and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Malaysia Industries Bhd's current Operating Margin % is 20.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South Malaysia Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, South Malaysia Industries Bhd (XKLS:4375) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.36, compared to a current price of RM0.21 — trading 43.1% below its estimated fair value. The current Operating Margin % is 20.58% and 215.2% above the Industrial Products industry median of 6.53. South Malaysia Industries Bhd's overall GF Score™ is 36/100 with 3 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 South Malaysia Industries Bhd (XKLS:4375), the current Operating Margin % is 20.58% 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 South Malaysia Industries Bhd (XKLS:4375) Overvalued in 2026?

Based on GuruFocus' analysis, South Malaysia Industries Bhd stock appears to be undervalued. The current stock price of RM0.21 is trading 43.1% below its estimated GF Value™ of RM0.36. GuruFocus considers South Malaysia Industries Bhd to be Possible Value Trap.

Key valuation signals for XKLS:4375:

  • Operating Margin %: 20.58%
  • GF Value™: RM0.36 vs. price of RM0.21 (43.1% below fair value)
  • GF Score™: 36/100 with 3 warning signs
  • Industry Position: 215.2% above the Industrial Products median (#10 of 3038)

No single metric tells the full story. See the XKLS:4375 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


South Malaysia Industries Bhd Business Description

Address No. 6, Lorong P. Ramlee, 13A Floor, Menara SMI, Wilayah Persekutuan, Kuala Lumpur, SGR, MYS, 50250
South Malaysia Industries Bhd is principally engaged in investment holding, trading, property development and provision of management services. The company's reportable segments are: i) Property development: Develop and sale of residential and commercial properties, ii) Property & investment holding: Investment in properties, carpark operation and holding company, iii) Manufacturing and trading: Manufacture of assorted wires and trading. The majority of the company's revenue is derived from the Manufacturing and trading segment. Geographically, it predominantly operates in Malaysia.
36GF Score

Get the complete analysis for XKLS:4375

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

RM0.21
Price
RM0.36
GF Value