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Heng Tai Consumables GroupHKSE:00197 -1.96%36 Gross Margin % is 5.30% as of Dec. 2025, which is 35% below its 10-year median of 8.16. GuruFocus rates HKSE:00197 with a GF Score™ of 36/100 and a GF Value™ of HK$0.17 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 304 Retail - Defensive companies, Heng Tai Consumables Group ranks worse than 89.47% on this metric.
HKSE:00197's Gross Margin % is ranked worse than 89.47% of 304
companies
in the Retail - Defensive industry
Industry Median: 24.225
vs HKSE:00197: 7.26
Heng Tai Consumables Group had a gross margin of 5.30% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Heng Tai Consumables Group (HKSE:00197) 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
Heng Tai Consumables Group had a gross margin of 5.30% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
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.
Heng Tai Consumables Group Gross Margin % Related Terms
Heng Tai Consumables Group Gross 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.
HKSE:00197 vs SYY, USFD, PFGC: Gross Margin % Comparison
For the Food Distribution subindustry, Heng Tai Consumables Group'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.
Heng Tai Consumables Group Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Heng Tai Consumables Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Heng Tai Consumables Group's Gross 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.
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.
Heng Tai Consumables Group (HKSE:00197) has a Gross Margin % of 5.30% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Heng Tai Consumables Group and its competitors. This is 35% below median its historical median of 8.16. Over the past decade, Heng Tai Consumables Group's Gross Margin % has ranged from 3.37 to 11.03. According to the industry distribution chart, Heng Tai Consumables Group ranks #272 out of 304 companies in the Retail - Defensive industry, placing it in the top 89.5%.
Is Heng Tai Consumables Group's Gross Margin % too high?
Heng Tai Consumables Group's current Gross Margin % of 5.30% is 35% below median its 10-year median of 8.16. Over the past 10 years, this metric has ranged from a low of 3.37 to a high of 11.03. The Retail - Defensive industry median Gross Margin % is 24.23. Heng Tai Consumables Group's value of 5.30% is 78.1% below this industry median. Based on the distribution chart, Heng Tai Consumables Group ranks #272 out of 304 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Heng Tai Consumables Group has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Heng Tai Consumables Group's Gross Margin % compare to SYY and USFD?
According to the Retail - Defensive industry distribution chart, Heng Tai Consumables Group ranks #272 out of 304 companies for Gross Margin %. This places Heng Tai Consumables Group in the lower half of its industry. The industry median Gross Margin % is 24.23. Heng Tai Consumables Group's value of 5.30% is 78.1% below this benchmark. Historically, Heng Tai Consumables Group's own Gross Margin % has ranged from 3.37 to 11.03 over the past decade. While the company's 10-year median is 8.16 vs. the industry median of 24.23, Heng Tai Consumables Group has consistently been below 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 Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.23, based on 304 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. Heng Tai Consumables Group's current Gross Margin % of 5.30% is 78.1% below 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 Heng Tai Consumables Group and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heng Tai Consumables Group's current Gross Margin % is 5.30%, which is 35% below median its own 10-year median of 8.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heng Tai Consumables Group stock overvalued right now?
Based on GuruFocus' analysis, Heng Tai Consumables Group (HKSE:00197) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.50 — trading 194.1% above its estimated fair value. The current Gross Margin % is 5.30%, which is 35% below median its 10-year median of 8.16 and 78.1% below the Retail - Defensive industry median of 24.23. Heng Tai Consumables Group's overall GF Score™ is 36/100 with 6 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 Heng Tai Consumables Group (HKSE:00197), the current Gross Margin % is 5.30% 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 Heng Tai Consumables Group (HKSE:00197) Overvalued in 2026?
Based on GuruFocus' analysis, Heng Tai Consumables Group stock appears to be overvalued.
The current stock price of HK$0.50 is trading 194.1% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Heng Tai Consumables Group to be Significantly Overvalued.
Key valuation signals for HKSE:00197:
Gross Margin %: 5.30% (35% below median its 10-year median of 8.16)
GF Value™: HK$0.17 vs. price of HK$0.50 (194.1% above fair value)
Industry Position: 78.1% below the Retail - Defensive median (#272 of 304)
No single metric tells the full story. See the HKSE:00197 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heng Tai Consumables Group Ltd is engaged in two segments: Fast-Moving Consumer Goods (FMCG), agro-products, and logistics services. The FMCG trading business segment, which is the key revenue driver, involves the sale and trading of packaged foods, beverages, household consumable products, and cold chain products; the Agri-products business segment cultivates, sells, and trades fresh and processed fruits and vegetables. Cts. Geographically, it derives a majority of revenue from China, from the FMCG Trading Business.
36GF Score
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