Henan Tongxin Transmission Co (BJSE:920454) Gross Margin %: 31.45% (As of Jun. 2026) — Near Median

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BJSE:920454 Henan Tongxin Transmission Co Ltd BJSE:920454
83 GF Score
Price ¥10.96
GF Value ¥13.69
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Henan Tongxin Transmission Co Gross Margin %?

Henan Tongxin Transmission Co BJSE:920454 83 Gross Margin % is 31.45% as of Jun. 2026, which is 1% below its 10-year median of 31.85. GuruFocus rates BJSE:920454 with a GF Score™ of 83/100 and a GF Value™ of ¥13.69 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,310 Vehicles & Parts companies, Henan Tongxin Transmission Co ranks better than 75.42% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Henan Tongxin Transmission Co's Gross Profit for the three months ended in Jun. 2026 was ¥11.4 Mil. Henan Tongxin Transmission Co's Revenue for the three months ended in Jun. 2026 was ¥36.2 Mil. Therefore, Henan Tongxin Transmission Co's Gross Margin % for the quarter that ended in Jun. 2026 was 31.45%.

Warning Sign:

Henan Tongxin Transmission Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.5%.


The historical rank and industry rank for Henan Tongxin Transmission Co's Gross Margin % or its related term are showing as below:

BJSE:920454' s Gross Margin % Range Over the Past 10 Years
Min: 20.35   Med: 31.85   Max: 35.96
Current: 31.66


During the past 13 years, the highest Gross Margin % of Henan Tongxin Transmission Co was 35.96%. The lowest was 20.35%. And the median was 31.85%.

BJSE:920454's Gross Margin % is ranked better than
75.42% of 1310 companies
in the Vehicles & Parts industry
Industry Median: 19.905 vs BJSE:920454: 31.66

Henan Tongxin Transmission Co had a gross margin of 31.45% for the quarter that ended in Jun. 2026 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Henan Tongxin Transmission Co was -1.50% per year.


Henan Tongxin Transmission Co  (BJSE:920454) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Henan Tongxin Transmission Co had a gross margin of 31.45% for the quarter that ended in Jun. 2026 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Henan Tongxin Transmission Co Gross Margin % Related Terms


Henan Tongxin Transmission Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Henan Tongxin Transmission Co's Gross 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.

Henan Tongxin Transmission Co Gross Margin % Chart

Henan Tongxin Transmission Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.89 20.35 24.70 30.39 31.54

Henan Tongxin Transmission Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Gross 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 32.46 31.50 32.80 30.91 31.45

BJSE:920454 vs ORLY, AZO: Gross Margin % Comparison

For the Auto Parts subindustry, Henan Tongxin Transmission Co's Gross Margin %, along with its competitors' market caps and Gross 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.


Henan Tongxin Transmission Co Gross Margin % vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Henan Tongxin Transmission Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Henan Tongxin Transmission Co's Gross Margin % falls into.


BJSE:920454
83GF Score
Henan Tongxin Transmission Co Ltd BJSE:920454
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Henan Tongxin Transmission Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Henan Tongxin Transmission Co's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=47.5 / 150.547
=(Revenue - Cost of Goods Sold) / Revenue
=(150.547 - 103.063) / 150.547
=31.54 %

Henan Tongxin Transmission Co's Gross Margin for the quarter that ended in Jun. 2026 is calculated as


Gross Margin % (Q: Jun. 2026 )=Gross Profit (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=11.4 / 36.16
=(Revenue - Cost of Goods Sold) / Revenue
=(36.16 - 24.786) / 36.16
=31.45 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 31.45% mean?
Henan Tongxin Transmission Co (BJSE:920454) has a Gross Margin % of 31.45% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Henan Tongxin Transmission Co and its competitors. This is near median its historical median of 31.85. Over the past decade, Henan Tongxin Transmission Co's Gross Margin % has ranged from 20.35 to 35.96. According to the industry distribution chart, Henan Tongxin Transmission Co ranks #322 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 24.6%.
Is Henan Tongxin Transmission Co's Gross Margin % too high?
Henan Tongxin Transmission Co's current Gross Margin % of 31.45% is near median its 10-year median of 31.85. Over the past 10 years, this metric has ranged from a low of 20.35 to a high of 35.96. The Vehicles & Parts industry median Gross Margin % is 19.91. Henan Tongxin Transmission Co's value of 31.45% is 58% above this industry median. Based on the distribution chart, Henan Tongxin Transmission Co ranks #322 out of 1310 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Henan Tongxin Transmission Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Henan Tongxin Transmission Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Henan Tongxin Transmission Co ranks #322 out of 1310 companies for Gross Margin %. This places Henan Tongxin Transmission Co in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.91. Henan Tongxin Transmission Co's value of 31.45% is 58% above this benchmark. Historically, Henan Tongxin Transmission Co's own Gross Margin % has ranged from 20.35 to 35.96 over the past decade. While the company's 10-year median is 31.85 vs. the industry median of 19.91, Henan Tongxin Transmission 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 Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.91, based on 1,310 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Henan Tongxin Transmission Co's current Gross Margin % of 31.45% is 58% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Henan Tongxin Transmission Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Tongxin Transmission Co's current Gross Margin % is 31.45%, which is near median its own 10-year median of 31.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Tongxin Transmission Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Tongxin Transmission Co (BJSE:920454) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥13.69, compared to a current price of ¥10.96 — trading 19.9% below its estimated fair value. The current Gross Margin % is 31.45%, which is near median its 10-year median of 31.85 and 58% above the Vehicles & Parts industry median of 19.91. Henan Tongxin Transmission Co's overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Henan Tongxin Transmission Co (BJSE:920454), the current Gross Margin % is 31.45% as of Jun. 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 Henan Tongxin Transmission Co (BJSE:920454) Overvalued in 2026?

Based on GuruFocus' analysis, Henan Tongxin Transmission Co stock appears to be undervalued. The current stock price of ¥10.96 is trading 19.9% below its estimated GF Value™ of ¥13.69. GuruFocus considers Henan Tongxin Transmission Co to be Modestly Undervalued.

Key valuation signals for BJSE:920454:

  • Gross Margin %: 31.45% (near median its 10-year median of 31.85)
  • GF Value™: ¥13.69 vs. price of ¥10.96 (19.9% below fair value)
  • GF Score™: 83/100 with 4 warning signs
  • Industry Position: 58% above the Vehicles & Parts median (#322 of 1310)

No single metric tells the full story. See the BJSE:920454 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Henan Tongxin Transmission Co Business Description

Address South of Changqing Street, Economic and Technological Development Zone, Weidu District, Henan Province, Xuchang City, CHN, 461000
Henan Tongxin Transmission Co Ltd engages in the research and development, production, and sales of all kinds of automobile drive shafts, providing comprehensive one-stop solutions for industry customers. Its product offerings comprise Drive shaft with support (front axle), Telescopic Drive Shaft (Rear Shaft), Coupled drive shafts, Wing drive shafts, and spare parts.
83GF Score

Get the complete analysis for BJSE:920454

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

¥10.96
Price
¥13.69
GF Value