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Sheng Yuan HoldingsHKSE:00851 +3.13%28 Gross Margin % is 4.42% as of Dec. 2025, which is 81% below its 10-year median of 22.74. GuruFocus rates HKSE:00851 with a GF Score™ of 28/100 and a GF Value™ of HK$0.69 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 615 Capital Markets companies, Sheng Yuan Holdings ranks worse than 77.4% on this metric.
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
Sheng Yuan Holdings had a gross margin of 4.42% 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.
Sheng Yuan Holdings Gross Margin % Related Terms
Sheng Yuan Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sheng Yuan Holdings'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.
HKSE:00851 vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, Sheng Yuan 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.
Sheng Yuan Holdings Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Sheng Yuan Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sheng Yuan 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.
Sheng Yuan Holdings (HKSE:00851) has a Gross Margin % of 4.42% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Sheng Yuan Holdings and its competitors. This is 81% below median its historical median of 22.74. According to the industry distribution chart, Sheng Yuan Holdings ranks #476 out of 615 companies in the Capital Markets industry, placing it in the top 77.4%.
Is Sheng Yuan Holdings' Gross Margin % too high?
Sheng Yuan Holdings' current Gross Margin % of 4.42% is 81% below median its 10-year median of 22.74. The Capital Markets industry median Gross Margin % is 48.18. Sheng Yuan Holdings' value of 4.42% is 90.8% below this industry median. Based on the distribution chart, Sheng Yuan Holdings ranks #476 out of 615 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, Sheng Yuan Holdings has a GF Score™ of 28/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sheng Yuan Holdings' Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Sheng Yuan Holdings ranks #476 out of 615 companies for Gross Margin %. This places Sheng Yuan Holdings in the lower half of its industry. The industry median Gross Margin % is 48.18. Sheng Yuan Holdings' value of 4.42% is 90.8% below this benchmark. While the company's 10-year median is 22.74 vs. the industry median of 48.18, Sheng Yuan Holdings 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 48.18, based on 615 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. Sheng Yuan Holdings's current Gross Margin % of 4.42% is 90.8% 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 Sheng Yuan Holdings and its competitors. For the Capital Markets industry, the median Gross Margin % is 48.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sheng Yuan Holdings's current Gross Margin % is 4.42%, which is 81% below median its own 10-year median of 22.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sheng Yuan Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sheng Yuan Holdings (HKSE:00851) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.69, compared to a current price of HK$0.17 — trading 76.1% below its estimated fair value. The current Gross Margin % is 4.42%, which is 81% below median its 10-year median of 22.74 and 90.8% below the Capital Markets industry median of 48.18. Sheng Yuan Holdings' overall GF Score™ is 28/100 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 Sheng Yuan Holdings (HKSE:00851), the current Gross Margin % is 4.42% 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 Sheng Yuan Holdings (HKSE:00851) Overvalued in 2026?
Based on GuruFocus' analysis, Sheng Yuan Holdings stock appears to be undervalued.
The current stock price of HK$0.17 is trading 76.1% below its estimated GF Value™ of HK$0.69.
GuruFocus considers Sheng Yuan Holdings to be Possible Value Trap.
Key valuation signals for HKSE:00851:
Gross Margin %: 4.42% (81% below median its 10-year median of 22.74)
GF Value™: HK$0.69 vs. price of HK$0.17 (76.1% below fair value)
Industry Position: 90.8% below the Capital Markets median (#476 of 615)
No single metric tells the full story. See the HKSE:00851 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sheng Yuan Holdings Ltd is an investment holding company. The company through its subsidiaries is engaged in the provision of financial services in Hong Kong. The operating business segments are securities brokerage and financial services is engaged in the provision of discretionary and non-discretionary dealing services for securities, securities placing and underwriting services, margin financing and money lending services, corporate finance advisory and general advisory services; asset management services provides fund management and discretionary portfolio management and investment advisory services; the proprietary trading segment is engaged in investment holding and securities trading; and trading business is engaged in Financing services. It derives revenue from Hong Kong.
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