Shandong Hi-Speed Holdings Group (HKSE:00412) 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
Shandong Hi-Speed Holdings Group had a gross margin of 34.36% 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.
Shandong Hi-Speed Holdings Group Gross Margin % Related Terms
Shandong Hi-Speed Holdings 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.
Shandong Hi-Speed Holdings Group Gross Margin % Chart
HKSE:00412 vs BLK, BX, KKR: Gross Margin % Comparison
For the Asset Management subindustry, Shandong Hi-Speed Holdings 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.
Shandong Hi-Speed Holdings Group Gross Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Shandong Hi-Speed Holdings Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Hi-Speed Holdings 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.
Shandong Hi-Speed Holdings Group (HKSE:00412) has a Gross Margin % of 34.36% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shandong Hi-Speed Holdings Group and its competitors. This is 37% below median its historical median of 54.66. Over the past decade, Shandong Hi-Speed Holdings Group's Gross Margin % has ranged from 40.47 to 86.10. According to the industry distribution chart, Shandong Hi-Speed Holdings Group ranks #362 out of 552 companies in the Asset Management industry, placing it in the top 65.6%.
Is Shandong Hi-Speed Holdings Group's Gross Margin % too high?
Shandong Hi-Speed Holdings Group's current Gross Margin % of 34.36% is 37% below median its 10-year median of 54.66. Over the past 10 years, this metric has ranged from a low of 40.47 to a high of 86.10. The Asset Management industry median Gross Margin % is 56.54. Shandong Hi-Speed Holdings Group's value of 34.36% is 39.2% below this industry median. Based on the distribution chart, Shandong Hi-Speed Holdings Group ranks #362 out of 552 companies in the Asset Management industry, which is below the industry midpoint. Overall, Shandong Hi-Speed Holdings Group has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shandong Hi-Speed Holdings Group's Gross Margin % compare to BLK and BX?
According to the Asset Management industry distribution chart, Shandong Hi-Speed Holdings Group ranks #362 out of 552 companies for Gross Margin %. This places Shandong Hi-Speed Holdings Group in the lower half of its industry. The industry median Gross Margin % is 56.54. Shandong Hi-Speed Holdings Group's value of 34.36% is 39.2% below this benchmark. Historically, Shandong Hi-Speed Holdings Group's own Gross Margin % has ranged from 40.47 to 86.10 over the past decade. While the company's 10-year median is 54.66 vs. the industry median of 56.54, Shandong Hi-Speed Holdings 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 an Asset Management company?
The median Gross Margin % among Asset Management companies is 56.54, based on 552 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. Shandong Hi-Speed Holdings Group's current Gross Margin % of 34.36% is 39.2% 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 Shandong Hi-Speed Holdings Group and its competitors. For the Asset Management industry, the median Gross Margin % is 56.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Hi-Speed Holdings Group's current Gross Margin % is 34.36%, which is 37% below median its own 10-year median of 54.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Hi-Speed Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Shandong Hi-Speed Holdings Group (HKSE:00412) is currently considered Possible Value Trap. The stock's GF Value™ is HK$7.08, compared to a current price of HK$0.45 — trading 93.6% below its estimated fair value. The current Gross Margin % is 34.36%, which is 37% below median its 10-year median of 54.66 and 39.2% below the Asset Management industry median of 56.54. Shandong Hi-Speed Holdings Group's overall GF Score™ is 55/100 with 9 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 Shandong Hi-Speed Holdings Group (HKSE:00412), the current Gross Margin % is 34.36% 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 Shandong Hi-Speed Holdings Group (HKSE:00412) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Hi-Speed Holdings Group stock appears to be undervalued.
The current stock price of HK$0.45 is trading 93.6% below its estimated GF Value™ of HK$7.08.
GuruFocus considers Shandong Hi-Speed Holdings Group to be Possible Value Trap.
Key valuation signals for HKSE:00412:
Gross Margin %: 34.36% (37% below median its 10-year median of 54.66)
GF Value™: HK$7.08 vs. price of HK$0.45 (93.6% below fair value)
Industry Position: 39.2% below the Asset Management median (#362 of 552)
No single metric tells the full story. See the HKSE:00412 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Hi-Speed Holdings Group Business Description
Shandong Hi-Speed Holdings Group Ltd is an investment holding company & its segments include the Industrial investment segment in operations of the industrial investment-related business; the Standard investment segment in trading of listed securities & listed bonds for interest income & capital appreciation; the Non-standard investment segment in direct investment business, investments in debts instruments, unlisted bonds & investment funds; and Licensed financial services segment in provision of money lending services, securities brokerage services, asset management services & asset trading platform.
55GF Score
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