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HKSE:00556's Gross Margin % is ranked worse than 86.3% of 3001
companies
in the Industrial Products industry
Industry Median: 26.88
vs HKSE:00556: 12.11
Pan Asia Environmental Protection Group had a gross margin of 10.88% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Pan Asia Environmental Protection Group (HKSE:00556) 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
Pan Asia Environmental Protection Group had a gross margin of 10.88% 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.
Pan Asia Environmental Protection Group Gross Margin % Related Terms
Pan Asia Environmental Protection 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.
Pan Asia Environmental Protection Group Gross Margin % Chart
Pan Asia Environmental Protection Group Annual Data
HKSE:00556 vs VLTO, ZWS, CECO: Gross Margin % Comparison
For the Pollution & Treatment Controls subindustry, Pan Asia Environmental Protection 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.
Pan Asia Environmental Protection Group Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Pan Asia Environmental Protection Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pan Asia Environmental Protection 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.
Pan Asia Environmental Protection Group (HKSE:00556) has a Gross Margin % of 10.88% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Pan Asia Environmental Protection Group and its competitors. This is 14% below median its historical median of 12.71. Over the past decade, Pan Asia Environmental Protection Group's Gross Margin % has ranged from 4.44 to 21.20. According to the industry distribution chart, Pan Asia Environmental Protection Group ranks #2590 out of 3001 companies in the Industrial Products industry, placing it in the top 86.3%.
Is Pan Asia Environmental Protection Group's Gross Margin % too high?
Pan Asia Environmental Protection Group's current Gross Margin % of 10.88% is 14% below median its 10-year median of 12.71. Over the past 10 years, this metric has ranged from a low of 4.44 to a high of 21.20. The Industrial Products industry median Gross Margin % is 26.88. Pan Asia Environmental Protection Group's value of 10.88% is 59.5% below this industry median. Based on the distribution chart, Pan Asia Environmental Protection Group ranks #2590 out of 3001 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Pan Asia Environmental Protection Group has a GF Score™ of 52/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pan Asia Environmental Protection Group's Gross Margin % compare to VLTO and ZWS?
According to the Industrial Products industry distribution chart, Pan Asia Environmental Protection Group ranks #2590 out of 3001 companies for Gross Margin %. This places Pan Asia Environmental Protection Group in the lower half of its industry. The industry median Gross Margin % is 26.88. Pan Asia Environmental Protection Group's value of 10.88% is 59.5% below this benchmark. Historically, Pan Asia Environmental Protection Group's own Gross Margin % has ranged from 4.44 to 21.20 over the past decade. While the company's 10-year median is 12.71 vs. the industry median of 26.88, Pan Asia Environmental Protection 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 Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.88, based on 3,001 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. Pan Asia Environmental Protection Group's current Gross Margin % of 10.88% is 59.5% 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 Pan Asia Environmental Protection Group and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pan Asia Environmental Protection Group's current Gross Margin % is 10.88%, which is 14% below median its own 10-year median of 12.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pan Asia Environmental Protection Group stock overvalued right now?
Based on GuruFocus' analysis, Pan Asia Environmental Protection Group (HKSE:00556) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.45, compared to a current price of HK$0.58 — trading 28.9% above its estimated fair value. The current Gross Margin % is 10.88%, which is 14% below median its 10-year median of 12.71 and 59.5% below the Industrial Products industry median of 26.88. Pan Asia Environmental Protection Group's overall GF Score™ is 52/100 with 3 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 Pan Asia Environmental Protection Group (HKSE:00556), the current Gross Margin % is 10.88% 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 Pan Asia Environmental Protection Group (HKSE:00556) Overvalued in 2026?
Based on GuruFocus' analysis, Pan Asia Environmental Protection Group stock appears to be overvalued.
The current stock price of HK$0.58 is trading 28.9% above its estimated GF Value™ of HK$0.45.
GuruFocus considers Pan Asia Environmental Protection Group to be Modestly Overvalued.
Key valuation signals for HKSE:00556:
Gross Margin %: 10.88% (14% below median its 10-year median of 12.71)
GF Value™: HK$0.45 vs. price of HK$0.58 (28.9% above fair value)
Industry Position: 59.5% below the Industrial Products median (#2590 of 3001)
No single metric tells the full story. See the HKSE:00556 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pan Asia Environmental Protection Group Ltd is engaged in the sales of environmental protection (EP) products and equipment, and undertaking of EP construction engineering services in the People's Republic of China (the PRC), and investment holding. The company's segments include EP products and equipment, and EP construction engineering services. Majority of the revenue is derived from the EP products and equipment segment. Geographically, the company operates only in the PRC.
52GF Score
Get the complete analysis for HKSE:00556
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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