Shanghai Hollywave Electronic System Co (SHSE:688682) Pretax Margin %: 8.37% (As of Mar. 2026) — 54% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

SHSE:688682 Shanghai Hollywave Electronic System Co Ltd SHSE:688682
76 GF Score
Price ¥32.13
GF Value ¥28.68
Valuation Modestly Overvalued
! 3 Warning Signs
View Full Analysis

What is Shanghai Hollywave Electronic System Co Pretax Margin %?

Shanghai Hollywave Electronic System Co SHSE:688682 -1.47% 76 Pretax Margin % is 8.37% as of Mar. 2026, which is 54% below its 10-year median of 18.00. GuruFocus rates SHSE:688682 with a GF Score™ of 76/100 and a GF Value™ of ¥28.68 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,477 Hardware companies, Shanghai Hollywave Electronic System Co ranks worse than 78.6% on this metric.

Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Shanghai Hollywave Electronic System Co's Pre-Tax Income for the three months ended in Mar. 2026 was ¥6.7 Mil. Shanghai Hollywave Electronic System Co's Revenue for the three months ended in Mar. 2026 was ¥80.0 Mil. Therefore, Shanghai Hollywave Electronic System Co's pretax margin for the quarter that ended in Mar. 2026 was 8.37%.

The historical rank and industry rank for Shanghai Hollywave Electronic System Co's Pretax Margin % or its related term are showing as below:

SHSE:688682' s Pretax Margin % Range Over the Past 10 Years
Min: -8.46   Med: 18   Max: 22.9
Current: -8.18


SHSE:688682's Pretax Margin % is ranked worse than
78.6% of 2477 companies
in the Hardware industry
Industry Median: 3.58 vs SHSE:688682: -8.18

Shanghai Hollywave Electronic System Co  (SHSE:688682) 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.


Shanghai Hollywave Electronic System Co Pretax Margin % Related Terms


Shanghai Hollywave Electronic System Co Pretax Margin % Historical Data

* Premium members only.

The historical data trend for Shanghai Hollywave Electronic System Co's Pretax 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.

Shanghai Hollywave Electronic System Co Pretax Margin % Chart

Shanghai Hollywave Electronic System Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Pretax Margin %
Get a 7-Day Free Trial Premium Member Only 22.90 17.43 9.20 6.38 -8.46

Shanghai Hollywave Electronic System Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Pretax 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 8.78 -22.58 6.01 -36.53 8.37

SHSE:688682 vs CSCO, CIEN, MSI: Pretax Margin % Comparison

For the Communication Equipment subindustry, Shanghai Hollywave Electronic System 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.


Shanghai Hollywave Electronic System Co Pretax Margin % vs Hardware Industry

For the Hardware industry and Technology sector, Shanghai Hollywave Electronic System Co's Pretax Margin % distribution charts can be found below:

* The bar in red indicates where Shanghai Hollywave Electronic System Co's Pretax Margin % falls into.


SHSE:688682
76GF Score
Shanghai Hollywave Electronic System Co Ltd SHSE:688682
Pretax Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shanghai Hollywave Electronic System Co Pretax Margin % Calculation

Pretax margin - also known as pretax profit margin is the ratio of Pretax Income divided by net sales or Revenue, usually presented in percent.

Shanghai Hollywave Electronic System Co's Pretax Margin for the fiscal year that ended in Dec. 2025 is calculated as

Pretax Margin=Pre-Tax Income (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=-25.644/303.266
=-8.46 %

Shanghai Hollywave Electronic System Co's Pretax Margin for the quarter that ended in Mar. 2026 is calculated as

Pretax Margin=Pre-Tax Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=6.697/79.99
=8.37 %

* 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 Pretax Margin % →
What does a Pretax Margin % of 8.37% mean?
Shanghai Hollywave Electronic System Co (SHSE:688682) has a Pretax Margin % of 8.37% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Shanghai Hollywave Electronic System Co and its competitors. This is 54% below median its historical median of 18.00. According to the industry distribution chart, Shanghai Hollywave Electronic System Co ranks #1947 out of 2477 companies in the Hardware industry, placing it in the top 78.6%.
Is Shanghai Hollywave Electronic System Co's Pretax Margin % too high?
Shanghai Hollywave Electronic System Co's current Pretax Margin % of 8.37% is 54% below median its 10-year median of 18.00. The Hardware industry median Pretax Margin % is 3.58. Shanghai Hollywave Electronic System Co's value of 8.37% is 133.8% above this industry median. Based on the distribution chart, Shanghai Hollywave Electronic System Co ranks #1947 out of 2477 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Shanghai Hollywave Electronic System Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Hollywave Electronic System Co's Pretax Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Shanghai Hollywave Electronic System Co ranks #1947 out of 2477 companies for Pretax Margin %. This places Shanghai Hollywave Electronic System Co in the lower half of its industry. The industry median Pretax Margin % is 3.58. Shanghai Hollywave Electronic System Co's value of 8.37% is 133.8% above this benchmark. While the company's 10-year median is 18.00 vs. the industry median of 3.58, Shanghai Hollywave Electronic System 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 Hardware company?
The median Pretax Margin % among Hardware companies is 3.58, based on 2,477 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. Shanghai Hollywave Electronic System Co's current Pretax Margin % of 8.37% is 133.8% 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 Shanghai Hollywave Electronic System Co and its competitors. For the Hardware industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Hollywave Electronic System Co's current Pretax Margin % is 8.37%, which is 54% below median its own 10-year median of 18.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Hollywave Electronic System Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Hollywave Electronic System Co (SHSE:688682) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥28.68, compared to a current price of ¥32.13 — trading 12% above its estimated fair value. The current Pretax Margin % is 8.37%, which is 54% below median its 10-year median of 18.00 and 133.8% above the Hardware industry median of 3.58. Shanghai Hollywave Electronic System Co's overall GF Score™ is 76/100 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 Shanghai Hollywave Electronic System Co (SHSE:688682), the current Pretax Margin % is 8.37% 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 Shanghai Hollywave Electronic System Co (SHSE:688682) Overvalued in 2026?

Based on GuruFocus' analysis, Shanghai Hollywave Electronic System Co stock appears to be overvalued. The current stock price of ¥32.13 is trading 12% above its estimated GF Value™ of ¥28.68. GuruFocus considers Shanghai Hollywave Electronic System Co to be Modestly Overvalued.

Key valuation signals for SHSE:688682:

  • Pretax Margin %: 8.37% (54% below median its 10-year median of 18.00)
  • GF Value™: ¥28.68 vs. price of ¥32.13 (12% above fair value)
  • GF Score™: 76/100 with 3 warning signs
  • Industry Position: 133.8% above the Hardware median (#1947 of 2477)

No single metric tells the full story. See the SHSE:688682 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shanghai Hollywave Electronic System Co Business Description

Address No.498 Guoshoujing Road, Room 16102, 1st Floor, Building 15, Pilot Free Trade Zone, Shanghai, CHN, 201203
Shanghai Hollywave Electronic System Co Ltd is engaged in providing systems, software and services for testing and simulation in the field of radar and wireless communications.
76GF Score

Get the complete analysis for SHSE:688682

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

¥32.13
Price
¥28.68
GF Value