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What is China Dredging Environment Protection Holdings Gross Margin %?
China Dredging Environment Protection HoldingsHKSE:00871 Gross Margin % is 22.42% as of Dec. 2025, which is 41% above its 10-year median of 15.94. The stock has 4 warning signs investors should review. Among 1,731 Construction companies, China Dredging Environment Protection Holdings ranks worse than 51.42% on this metric.
China Dredging Environment Protection Holdings (HKSE:00871) 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 Dredging Environment Protection Holdings had a gross margin of 22.42% 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.
China Dredging Environment Protection Holdings Gross Margin % Related Terms
China Dredging Environment Protection 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 Dredging Environment Protection Holdings Gross Margin % Chart
China Dredging Environment Protection Holdings Annual Data
HKSE:00871 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, China Dredging Environment Protection 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 Dredging Environment Protection Holdings Gross Margin % vs Construction Industry
* 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 Dredging Environment Protection Holdings (HKSE:00871) has a Gross Margin % of 22.42% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Dredging Environment Protection Holdings and its competitors. This is 41% above median its historical median of 15.94. According to the industry distribution chart, China Dredging Environment Protection Holdings ranks #890 out of 1731 companies in the Construction industry, placing it in the top 51.4%.
Is China Dredging Environment Protection Holdings' Gross Margin % too high?
China Dredging Environment Protection Holdings' current Gross Margin % of 22.42% is 41% above median its 10-year median of 15.94. The Construction industry median Gross Margin % is 20.84. China Dredging Environment Protection Holdings' value of 22.42% is 7.6% above this industry median. Based on the distribution chart, China Dredging Environment Protection Holdings ranks #890 out of 1731 companies in the Construction industry, which is below the industry midpoint.
How does China Dredging Environment Protection Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, China Dredging Environment Protection Holdings ranks #890 out of 1731 companies for Gross Margin %. This places China Dredging Environment Protection Holdings in the lower half of its industry. The industry median Gross Margin % is 20.84. China Dredging Environment Protection Holdings' value of 22.42% is 7.6% above this benchmark. While the company's 10-year median is 15.94 vs. the industry median of 20.84, China Dredging Environment Protection 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 a Construction company?
The median Gross Margin % among Construction companies is 20.84, based on 1,731 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 Dredging Environment Protection Holdings's current Gross Margin % of 22.42% is 7.6% 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 Dredging Environment Protection Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Dredging Environment Protection Holdings's current Gross Margin % is 22.42%, which is 41% above median its own 10-year median of 15.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Dredging Environment Protection Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Dredging Environment Protection Holdings (HKSE:00871) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.06, compared to a current price of HK$0.05 — trading 18.3% below its estimated fair value. The current Gross Margin % is 22.42%, which is 41% above median its 10-year median of 15.94 and 7.6% above the Construction industry median of 20.84. 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 Dredging Environment Protection Holdings (HKSE:00871), the current Gross Margin % is 22.42% 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.
China Dredging Environment Protection Holdings Ltd is an investment holding company. Through its subsidiaries, it is engaged in the provision of dredging and water management services, the provision of marine hoisting, installation, and other engineering services. It operates in four reportable segments: Capital and Reclamation Dredging Business; Environmental Protection Dredging and Water Management Business; Other Marine Business; and Property Management Business. The group generates the majority of its revenue from Other Marine Business, which mainly comprises marine hoisting, installation, salvaging, vessel chartering, and other engineering services. It derives revenue from the transfer of goods and services in geographical markets from Mainland China and Other countries and regions.
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