Tek Seng Holdings Bhd (XKLS:7200) Operating Margin %: 14.15% (As of Mar. 2026) — 22% Below Median

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XKLS:7200 Tek Seng Holdings Bhd XKLS:7200
50 GF Score
Price RM0.22
GF Value RM0.25
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Tek Seng Holdings Bhd Operating Margin %?

Tek Seng Holdings Bhd XKLS:7200 50 Operating Margin % is 14.15% as of Mar. 2026, which is 22% below its 10-year median of 18.08. GuruFocus rates XKLS:7200 with a GF Score™ of 50/100 and a GF Value™ of RM0.25 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,039 Manufacturing - Apparel & Accessories companies, Tek Seng Holdings Bhd ranks better than 78.25% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tek Seng Holdings Bhd's Operating Income for the three months ended in Mar. 2026 was RM5.7 Mil. Tek Seng Holdings Bhd's Revenue for the three months ended in Mar. 2026 was RM40.5 Mil. Therefore, Tek Seng Holdings Bhd's Operating Margin % for the quarter that ended in Mar. 2026 was 14.15%.

Warning Sign:

Tek Seng Holdings Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -13.1%.

The historical rank and industry rank for Tek Seng Holdings Bhd's Operating Margin % or its related term are showing as below:

XKLS:7200' s Operating Margin % Range Over the Past 10 Years
Min: -2.06   Med: 18.08   Max: 29.92
Current: 10.32


XKLS:7200's Operating Margin % is ranked better than
78.25% of 1039 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.09 vs XKLS:7200: 10.32

Tek Seng Holdings Bhd's 5-Year Average Operating Margin % Growth Rate was -13.10% per year.

Tek Seng Holdings Bhd's Operating Income for the three months ended in Mar. 2026 was RM5.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was RM15.1 Mil.


Tek Seng Holdings Bhd  (XKLS:7200) 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.


Tek Seng Holdings Bhd Operating Margin % Related Terms


Tek Seng Holdings Bhd Operating Margin % Historical Data

* Premium members only.

The historical data trend for Tek Seng Holdings 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.

Tek Seng Holdings Bhd Operating Margin % Chart

Tek Seng Holdings Bhd 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 21.33 17.64 13.45 14.62 14.56

Tek Seng Holdings Bhd 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 9.43 10.74 8.37 7.44 14.15

XKLS:7200 vs AIN: Operating Margin % Comparison

For the Textile Manufacturing subindustry, Tek Seng Holdings 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.


Tek Seng Holdings Bhd Operating Margin % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Tek Seng Holdings Bhd's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Tek Seng Holdings Bhd's Operating Margin % falls into.


XKLS:7200
50GF Score
Tek Seng Holdings Bhd XKLS:7200
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tek Seng Holdings 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.

Tek Seng Holdings Bhd'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 )
=20.72 / 142.319
=14.56 %

Tek Seng Holdings 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 )
=5.726 / 40.455
=14.15 %

* 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 14.15% mean?
Tek Seng Holdings Bhd (XKLS:7200) has a Operating Margin % of 14.15% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tek Seng Holdings Bhd and its competitors. This is 22% below median its historical median of 18.08. According to the industry distribution chart, Tek Seng Holdings Bhd ranks #226 out of 1039 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 21.8%.
Is Tek Seng Holdings Bhd's Operating Margin % too high?
Tek Seng Holdings Bhd's current Operating Margin % of 14.15% is 22% below median its 10-year median of 18.08. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.09. Tek Seng Holdings Bhd's value of 14.15% is 246% above this industry median. Based on the distribution chart, Tek Seng Holdings Bhd ranks #226 out of 1039 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Tek Seng Holdings Bhd has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tek Seng Holdings Bhd's Operating Margin % compare to AIN?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Tek Seng Holdings Bhd ranks #226 out of 1039 companies for Operating Margin %. This places Tek Seng Holdings Bhd in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.09. Tek Seng Holdings Bhd's value of 14.15% is 246% above this benchmark. While the company's 10-year median is 18.08 vs. the industry median of 4.09, Tek Seng Holdings 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.09, based on 1,039 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. Tek Seng Holdings Bhd's current Operating Margin % of 14.15% is 246% 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 Tek Seng Holdings Bhd and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tek Seng Holdings Bhd's current Operating Margin % is 14.15%, which is 22% below median its own 10-year median of 18.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tek Seng Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, Tek Seng Holdings Bhd (XKLS:7200) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.25, compared to a current price of RM0.22 — trading 12% below its estimated fair value. The current Operating Margin % is 14.15%, which is 22% below median its 10-year median of 18.08 and 246% above the Manufacturing - Apparel & Accessories industry median of 4.09. Tek Seng Holdings Bhd's overall GF Score™ is 50/100 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 Tek Seng Holdings Bhd (XKLS:7200), the current Operating Margin % is 14.15% 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 Tek Seng Holdings Bhd (XKLS:7200) Overvalued in 2026?

Based on GuruFocus' analysis, Tek Seng Holdings Bhd stock appears to be undervalued. The current stock price of RM0.22 is trading 12% below its estimated GF Value™ of RM0.25. GuruFocus considers Tek Seng Holdings Bhd to be Modestly Undervalued.

Key valuation signals for XKLS:7200:

  • Operating Margin %: 14.15% (22% below median its 10-year median of 18.08)
  • GF Value™: RM0.25 vs. price of RM0.22 (12% below fair value)
  • GF Score™: 50/100 with 5 warning signs
  • Industry Position: 246% above the Manufacturing - Apparel & Accessories median (#226 of 1039)

No single metric tells the full story. See the XKLS:7200 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tek Seng Holdings Bhd Business Description

Address Plot 159, MK13, Jalan Perindustrian Bukit Minyak 7, Bukit Minyak Industrial Park, Bukit Mertajam, PNG, MYS, 14000
Tek Seng Holdings Bhd is an investment holding company. It operates through three segments: the polyvinyl chloride (PVC) segment, the Photovoltaic Solar segment, and the Property investment segment. The PVC segment is engaged in the manufacturing and trading of PVC sheeting, PolyPropylene (PP) Non-Woven, PVC leather-related products for industrial and consumer use. Whereas the Solar segment is engaged in the Trading of Solar Cell products and generating and supplying renewable energy. The Property investment segment is engaged in rental income from investment properties. The majority of revenue is from the PVC segment. Geographically, the majority of revenue is derived from Malaysia.
50GF Score

Get the complete analysis for XKLS:7200

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

RM0.22
Price
RM0.25
GF Value