China Electronics Huada Technology Co (HKSE:00085) Gross Margin %: 39.55% (As of Dec. 2025) — 10% Above Median

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HKSE:00085 China Electronics Huada Technology Co Ltd HKSE:00085
68 GF Score
Price HK$0.89
GF Value HK$1.14
Valuation Modestly Undervalued
! 4 Warning Signs
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What is China Electronics Huada Technology Co Gross Margin %?

China Electronics Huada Technology Co HKSE:00085 68 Gross Margin % is 39.55% as of Dec. 2025, which is 10% above its 10-year median of 35.84. GuruFocus rates HKSE:00085 with a GF Score™ of 68/100 and a GF Value™ of HK$1.14 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,012 Semiconductors companies, China Electronics Huada Technology Co ranks better than 64.33% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. China Electronics Huada Technology Co's Gross Profit for the six months ended in Dec. 2025 was HK$423 Mil. China Electronics Huada Technology Co's Revenue for the six months ended in Dec. 2025 was HK$1,069 Mil. Therefore, China Electronics Huada Technology Co's Gross Margin % for the quarter that ended in Dec. 2025 was 39.55%.


The historical rank and industry rank for China Electronics Huada Technology Co's Gross Margin % or its related term are showing as below:

HKSE:00085' s Gross Margin % Range Over the Past 10 Years
Min: 31.46   Med: 35.84   Max: 48.32
Current: 38.37


During the past 13 years, the highest Gross Margin % of China Electronics Huada Technology Co was 48.32%. The lowest was 31.46%. And the median was 35.84%.

HKSE:00085's Gross Margin % is ranked better than
64.33% of 1012 companies
in the Semiconductors industry
Industry Median: 30.42 vs HKSE:00085: 38.37

China Electronics Huada Technology Co had a gross margin of 39.55% for the quarter that ended in Dec. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for China Electronics Huada Technology Co was 4.80% per year.


China Electronics Huada Technology Co  (HKSE:00085) 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

China Electronics Huada Technology Co had a gross margin of 39.55% for the quarter that ended in Dec. 2025 => 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.


China Electronics Huada Technology Co Gross Margin % Related Terms


China Electronics Huada Technology Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for China Electronics Huada Technology 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.

China Electronics Huada Technology Co Gross Margin % Chart

China Electronics Huada Technology 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 33.93 44.79 42.99 48.32 38.37

China Electronics Huada Technology Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 37.74 41.70 57.43 37.23 39.55

HKSE:00085 vs NVDA, AVGO, MU: Gross Margin % Comparison

For the Semiconductors subindustry, China Electronics Huada Technology 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.


China Electronics Huada Technology Co Gross Margin % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, China Electronics Huada Technology Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China Electronics Huada Technology Co's Gross Margin % falls into.


HKSE:00085
68GF Score
China Electronics Huada Technology Co Ltd HKSE:00085
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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China Electronics Huada Technology Co Gross Margin % Calculation

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

China Electronics Huada Technology 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 )
=836.9 / 2181.165
=(Revenue - Cost of Goods Sold) / Revenue
=(2181.165 - 1344.301) / 2181.165
=38.37 %

China Electronics Huada Technology Co's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=422.8 / 1068.819
=(Revenue - Cost of Goods Sold) / Revenue
=(1068.819 - 646.052) / 1068.819
=39.55 %

* 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 39.55% mean?
China Electronics Huada Technology Co (HKSE:00085) has a Gross Margin % of 39.55% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Electronics Huada Technology Co and its competitors. This is 10% above median its historical median of 35.84. Over the past decade, China Electronics Huada Technology Co's Gross Margin % has ranged from 31.46 to 48.32. According to the industry distribution chart, China Electronics Huada Technology Co ranks #361 out of 1012 companies in the Semiconductors industry, placing it in the top 35.7%.
Is China Electronics Huada Technology Co's Gross Margin % too high?
China Electronics Huada Technology Co's current Gross Margin % of 39.55% is 10% above median its 10-year median of 35.84. Over the past 10 years, this metric has ranged from a low of 31.46 to a high of 48.32. The Semiconductors industry median Gross Margin % is 30.42. China Electronics Huada Technology Co's value of 39.55% is 30% above this industry median. Based on the distribution chart, China Electronics Huada Technology Co ranks #361 out of 1012 companies in the Semiconductors industry, which is above the industry midpoint. Overall, China Electronics Huada Technology Co has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Electronics Huada Technology Co's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, China Electronics Huada Technology Co ranks #361 out of 1012 companies for Gross Margin %. This puts China Electronics Huada Technology Co in the upper half of its industry. The industry median Gross Margin % is 30.42. China Electronics Huada Technology Co's value of 39.55% is 30% above this benchmark. Historically, China Electronics Huada Technology Co's own Gross Margin % has ranged from 31.46 to 48.32 over the past decade. While the company's 10-year median is 35.84 vs. the industry median of 30.42, China Electronics Huada 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 Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 30.42, based on 1,012 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. China Electronics Huada Technology Co's current Gross Margin % of 39.55% is 30% 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 China Electronics Huada Technology Co and its competitors. For the Semiconductors industry, the median Gross Margin % is 30.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Electronics Huada Technology Co's current Gross Margin % is 39.55%, which is 10% above median its own 10-year median of 35.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Electronics Huada Technology Co stock overvalued right now?
Based on GuruFocus' analysis, China Electronics Huada Technology Co (HKSE:00085) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$1.14, compared to a current price of HK$0.89 — trading 21.9% below its estimated fair value. The current Gross Margin % is 39.55%, which is 10% above median its 10-year median of 35.84 and 30% above the Semiconductors industry median of 30.42. China Electronics Huada Technology Co's overall GF Score™ is 68/100 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 China Electronics Huada Technology Co (HKSE:00085), the current Gross Margin % is 39.55% 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 China Electronics Huada Technology Co (HKSE:00085) Overvalued in 2026?

Based on GuruFocus' analysis, China Electronics Huada Technology Co stock appears to be undervalued. The current stock price of HK$0.89 is trading 21.9% below its estimated GF Value™ of HK$1.14. GuruFocus considers China Electronics Huada Technology Co to be Modestly Undervalued.

Key valuation signals for HKSE:00085:

  • Gross Margin %: 39.55% (10% above median its 10-year median of 35.84)
  • GF Value™: HK$1.14 vs. price of HK$0.89 (21.9% below fair value)
  • GF Score™: 68/100 with 4 warning signs
  • Industry Position: 30% above the Semiconductors median (#361 of 1012)

No single metric tells the full story. See the HKSE:00085 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China Electronics Huada Technology Co Business Description

Address 26 Harbour Road, Room 3403, 34th Floor, China Resources Building, Wanchai, Hong Kong, HKG
China Electronics Huada Technology Co Ltd is an investment holding company. The principal activities of the Group are the design and sale of integrated circuit chips. The Group's integrated circuits design business comprises the design of smart cards and secure element chips and the development of application systems. Its products are mainly used in the sectors of identity authentication, financial payment, government utilities, telecommunications, Internet of Things and Internet of Vehicles. Its segment is sale of integrated circuit products and provision of services. The Group generates revenue from Mainland China.
68GF Score

Get the complete analysis for HKSE:00085

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

HK$0.89
Price
HK$1.14
GF Value