Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Hongcheng Environmental Technology Co (HKSE:02265) 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.
Hongcheng Environmental Technology Co Pretax Margin % Related Terms
Hongcheng Environmental Technology Co 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.
Hongcheng Environmental Technology Co Pretax Margin % Chart
HKSE:02265 vs WM, RSG, WCN: Pretax Margin % Comparison
For the Waste Management subindustry, Hongcheng Environmental Technology Co'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.
Hongcheng Environmental Technology Co Pretax Margin % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Hongcheng Environmental Technology Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Hongcheng Environmental Technology Co's Pretax Margin % falls into.
* 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.
Hongcheng Environmental Technology Co (HKSE:02265) has a Pretax Margin % of 35.36% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Hongcheng Environmental Technology Co and its competitors. This is 17% below median its historical median of 42.46. Over the past decade, Hongcheng Environmental Technology Co's Pretax Margin % has ranged from 19.58 to 47.44. According to the industry distribution chart, Hongcheng Environmental Technology Co ranks #14 out of 238 companies in the Waste Management industry, placing it in the top 5.9%.
Is Hongcheng Environmental Technology Co's Pretax Margin % too high?
Hongcheng Environmental Technology Co's current Pretax Margin % of 35.36% is 17% below median its 10-year median of 42.46. Over the past 10 years, this metric has ranged from a low of 19.58 to a high of 47.44. The Waste Management industry median Pretax Margin % is 5.55. Hongcheng Environmental Technology Co's value of 35.36% is 537.1% above this industry median. Based on the distribution chart, Hongcheng Environmental Technology Co ranks #14 out of 238 companies in the Waste Management industry, which is in the top quartile — a strong position relative to peers. Overall, Hongcheng Environmental Technology Co has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hongcheng Environmental Technology Co's Pretax Margin % compare to WM and RSG?
According to the Waste Management industry distribution chart, Hongcheng Environmental Technology Co ranks #14 out of 238 companies for Pretax Margin %. This places Hongcheng Environmental Technology Co in the top 6% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.55. Hongcheng Environmental Technology Co's value of 35.36% is 537.1% above this benchmark. Historically, Hongcheng Environmental Technology Co's own Pretax Margin % has ranged from 19.58 to 47.44 over the past decade. While the company's 10-year median is 42.46 vs. the industry median of 5.55, Hongcheng Environmental Technology Co 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 Waste Management company?
The median Pretax Margin % among Waste Management companies is 5.55, based on 238 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. Hongcheng Environmental Technology Co's current Pretax Margin % of 35.36% is 537.1% 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 Hongcheng Environmental Technology Co and its competitors. For the Waste Management industry, the median Pretax Margin % is 5.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongcheng Environmental Technology Co's current Pretax Margin % is 35.36%, which is 17% below median its own 10-year median of 42.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongcheng Environmental Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co (HKSE:02265) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.61, compared to a current price of HK$1.07 — trading 33.5% below its estimated fair value. The current Pretax Margin % is 35.36%, which is 17% below median its 10-year median of 42.46 and 537.1% above the Waste Management industry median of 5.55. Hongcheng Environmental Technology Co's overall GF Score™ is 80/100 with 5 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 Hongcheng Environmental Technology Co (HKSE:02265), the current Pretax Margin % is 35.36% 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 Hongcheng Environmental Technology Co (HKSE:02265) Overvalued in 2026?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co stock appears to be undervalued.
The current stock price of HK$1.07 is trading 33.5% below its estimated GF Value™ of HK$1.61.
GuruFocus considers Hongcheng Environmental Technology Co to be Possible Value Trap.
Key valuation signals for HKSE:02265:
Pretax Margin %: 35.36% (17% below median its 10-year median of 42.46)
GF Value™: HK$1.61 vs. price of HK$1.07 (33.5% below fair value)
Industry Position: 537.1% above the Waste Management median (#14 of 238)
No single metric tells the full story. See the HKSE:02265 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongcheng Environmental Technology Co Ltd is an investment holding company. It is engaged in (i) the provision of gold mine hazardous waste treatment services and sales of pyrite concentrate, and (ii) the production and sales of products from reprocessing of pyrite concentrate and sulphuric acid; and (iii) the production and sales of magnesium fertiliser in the PRC. It has two reportable segments: Hazardous waste treatment and recycling, and Reprocessing of pyrite concentrate and Production of magnesium fertiliser. Key revenue is generated from the hazardous waste treatment and recycling segment.
80GF Score
Get the complete analysis for HKSE:02265
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:02265 has been successfully added to your 
