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China Energy Development Holdings (HKSE:00228) 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 Energy Development Holdings had a gross margin of 59.50% for the quarter that ended in Dec. 2025 => Durable 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.
China Energy Development Holdings Gross Margin % Related Terms
China Energy Development Holdings 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.
China Energy Development Holdings Gross Margin % Chart
For the Oil & Gas Integrated subindustry, China Energy Development Holdings'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 Energy Development Holdings Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, China Energy Development Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Energy Development Holdings'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.
China Energy Development Holdings (HKSE:00228) has a Gross Margin % of 59.50% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Energy Development Holdings and its competitors. This is near median its historical median of 61.74. Over the past decade, China Energy Development Holdings' Gross Margin % has ranged from 26.73 to 97.84. According to the industry distribution chart, China Energy Development Holdings ranks #185 out of 880 companies in the Oil & Gas industry, placing it in the top 21%.
Is China Energy Development Holdings' Gross Margin % too high?
China Energy Development Holdings' current Gross Margin % of 59.50% is near median its 10-year median of 61.74. Over the past 10 years, this metric has ranged from a low of 26.73 to a high of 97.84. The Oil & Gas industry median Gross Margin % is 26.91. China Energy Development Holdings' value of 59.50% is 121.1% above this industry median. Based on the distribution chart, China Energy Development Holdings ranks #185 out of 880 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, China Energy Development Holdings has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Energy Development Holdings' Gross Margin % compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, China Energy Development Holdings ranks #185 out of 880 companies for Gross Margin %. This places China Energy Development Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.91. China Energy Development Holdings' value of 59.50% is 121.1% above this benchmark. Historically, China Energy Development Holdings' own Gross Margin % has ranged from 26.73 to 97.84 over the past decade. While the company's 10-year median is 61.74 vs. the industry median of 26.91, China Energy Development Holdings 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 an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 26.91, based on 880 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 Energy Development Holdings's current Gross Margin % of 59.50% is 121.1% 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 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 Energy Development Holdings and its competitors. For the Oil & Gas industry, the median Gross Margin % is 26.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Energy Development Holdings's current Gross Margin % is 59.50%, which is near median its own 10-year median of 61.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Energy Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Energy Development Holdings (HKSE:00228) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.92, compared to a current price of HK$0.85 — trading 56% below its estimated fair value. The current Gross Margin % is 59.50%, which is near median its 10-year median of 61.74 and 121.1% above the Oil & Gas industry median of 26.91. China Energy Development Holdings' overall GF Score™ is 62/100 with 5 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 Energy Development Holdings (HKSE:00228), the current Gross Margin % is 59.50% 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 Energy Development Holdings (HKSE:00228) Overvalued in 2026?
Based on GuruFocus' analysis, China Energy Development Holdings stock appears to be undervalued.
The current stock price of HK$0.85 is trading 56% below its estimated GF Value™ of HK$1.92.
GuruFocus considers China Energy Development Holdings to be Possible Value Trap.
Key valuation signals for HKSE:00228:
Gross Margin %: 59.50% (near median its 10-year median of 61.74)
GF Value™: HK$1.92 vs. price of HK$0.85 (56% below fair value)
Industry Position: 121.1% above the Oil & Gas median (#185 of 880)
No single metric tells the full story. See the HKSE:00228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Energy Development Holdings Ltd is engaged in oil and gas exploration; distribution of natural gas; sales of food and beverages and money lending business in Hong Kong. The company is engaged in three segments, namely, The Exploration, Production and Distribution of Natural Gas segment engaged in the exploration, development, production and sales of natural gas and the usage of pipeline for distribution of natural gas. Majority of the revenue is derived from The Exploration, Production and Distribution of Natural Gas segment. Geographically, the company operates in PRC and Hong Kong region.
62GF Score
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