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Jiangsu Innovative Ecological New Materials (HKSE:02116) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Jiangsu Innovative Ecological New Materials Pretax Margin % Related Terms
Jiangsu Innovative Ecological New Materials Pretax 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.
Jiangsu Innovative Ecological New Materials Pretax Margin % Chart
Jiangsu Innovative Ecological New Materials Annual Data
HKSE:02116 vs LIN, SHW, ECL: Pretax Margin % Comparison
For the Specialty Chemicals subindustry, Jiangsu Innovative Ecological New Materials's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Jiangsu Innovative Ecological New Materials Pretax Margin % vs Chemicals Industry
* 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.
Jiangsu Innovative Ecological New Materials (HKSE:02116) has a Pretax Margin % of 6.28% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Jiangsu Innovative Ecological New Materials and its competitors. This is 55% below median its historical median of 14.03. Over the past decade, Jiangsu Innovative Ecological New Materials' Pretax Margin % has ranged from 7.28 to 28.84. According to the industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #530 out of 1583 companies in the Chemicals industry, placing it in the top 33.5%.
Is Jiangsu Innovative Ecological New Materials' Pretax Margin % too high?
Jiangsu Innovative Ecological New Materials' current Pretax Margin % of 6.28% is 55% below median its 10-year median of 14.03. Over the past 10 years, this metric has ranged from a low of 7.28 to a high of 28.84. The Chemicals industry median Pretax Margin % is 5.65. Jiangsu Innovative Ecological New Materials' value of 6.28% is 11.2% above this industry median. Based on the distribution chart, Jiangsu Innovative Ecological New Materials ranks #530 out of 1583 companies in the Chemicals industry, which is above the industry midpoint. Overall, Jiangsu Innovative Ecological New Materials has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Innovative Ecological New Materials' Pretax Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #530 out of 1583 companies for Pretax Margin %. This puts Jiangsu Innovative Ecological New Materials in the upper half of its industry. The industry median Pretax Margin % is 5.65. Jiangsu Innovative Ecological New Materials' value of 6.28% is 11.2% above this benchmark. Historically, Jiangsu Innovative Ecological New Materials' own Pretax Margin % has ranged from 7.28 to 28.84 over the past decade. While the company's 10-year median is 14.03 vs. the industry median of 5.65, Jiangsu Innovative Ecological New Materials 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 Pretax Margin % for a Chemicals company?
The median Pretax Margin % among Chemicals companies is 5.65, based on 1,583 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jiangsu Innovative Ecological New Materials's current Pretax Margin % of 6.28% is 11.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Jiangsu Innovative Ecological New Materials and its competitors. For the Chemicals industry, the median Pretax Margin % is 5.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Innovative Ecological New Materials's current Pretax Margin % is 6.28%, which is 55% below median its own 10-year median of 14.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Innovative Ecological New Materials stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials (HKSE:02116) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.43, compared to a current price of HK$0.71 — trading 65.1% above its estimated fair value. The current Pretax Margin % is 6.28%, which is 55% below median its 10-year median of 14.03 and 11.2% above the Chemicals industry median of 5.65. Jiangsu Innovative Ecological New Materials' overall GF Score™ is 61/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Jiangsu Innovative Ecological New Materials (HKSE:02116), the current Pretax Margin % is 6.28% as of Dec. 2025. 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 Jiangsu Innovative Ecological New Materials (HKSE:02116) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials stock appears to be overvalued.
The current stock price of HK$0.71 is trading 65.1% above its estimated GF Value™ of HK$0.43.
GuruFocus considers Jiangsu Innovative Ecological New Materials to be Significantly Overvalued.
Key valuation signals for HKSE:02116:
Pretax Margin %: 6.28% (55% below median its 10-year median of 14.03)
GF Value™: HK$0.43 vs. price of HK$0.71 (65.1% above fair value)
Industry Position: 11.2% above the Chemicals median (#530 of 1583)
No single metric tells the full story. See the HKSE:02116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Innovative Ecological New Materials Ltd develops, manufactures, and markets oil refining agents. The firm produces refining additives, oil additives, and other products. It offers and generates revenue from oil refining agents and fuel additives with desulfurizing agents, lubricity improvers, and metal passivation. The majority of the firm's revenue is generated from the sales of oil refining agents from Mainland China. The company operates in a single segment, which is the sale of oil refining agents and fuel additives.
61GF Score
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