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Chuan HoldingsHKSE:01420 62 Gross Margin % is 24.34% as of Jun. 2026, which is 186% above its 10-year median of 8.50. GuruFocus rates HKSE:01420 with a GF Score™ of 62/100 and a GF Value™ of HK$0.22 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,734 Construction companies, Chuan Holdings ranks better than 55.82% 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
Chuan Holdings had a gross margin of 24.34% for the quarter that ended in Jun. 2026 => 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.
Chuan Holdings Gross Margin % Related Terms
Chuan Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Chuan 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:01420 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Chuan 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.
Chuan Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Chuan Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chuan 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.
Chuan Holdings (HKSE:01420) has a Gross Margin % of 24.34% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chuan Holdings and its competitors. This is 186% above median its historical median of 8.50. According to the industry distribution chart, Chuan Holdings ranks #766 out of 1734 companies in the Construction industry, placing it in the top 44.2%.
Is Chuan Holdings' Gross Margin % too high?
Chuan Holdings' current Gross Margin % of 24.34% is 186% above median its 10-year median of 8.50. The Construction industry median Gross Margin % is 20.71. Chuan Holdings' value of 24.34% is 17.6% above this industry median. Based on the distribution chart, Chuan Holdings ranks #766 out of 1734 companies in the Construction industry, which is above the industry midpoint. Overall, Chuan Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chuan Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Chuan Holdings ranks #766 out of 1734 companies for Gross Margin %. This puts Chuan Holdings in the upper half of its industry. The industry median Gross Margin % is 20.71. Chuan Holdings' value of 24.34% is 17.6% above this benchmark. While the company's 10-year median is 8.50 vs. the industry median of 20.71, Chuan 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 20.71, based on 1,734 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. Chuan Holdings's current Gross Margin % of 24.34% is 17.6% 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 Chuan Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chuan Holdings's current Gross Margin % is 24.34%, which is 186% above median its own 10-year median of 8.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chuan Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chuan Holdings (HKSE:01420) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.22, compared to a current price of HK$0.30 — trading 36.4% above its estimated fair value. The current Gross Margin % is 24.34%, which is 186% above median its 10-year median of 8.50 and 17.6% above the Construction industry median of 20.71. Chuan 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 Chuan Holdings (HKSE:01420), the current Gross Margin % is 24.34% as of Jun. 2026. 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 Chuan Holdings (HKSE:01420) Overvalued in 2026?
Based on GuruFocus' analysis, Chuan Holdings stock appears to be overvalued.
The current stock price of HK$0.30 is trading 36.4% above its estimated GF Value™ of HK$0.22.
GuruFocus considers Chuan Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01420:
Gross Margin %: 24.34% (186% above median its 10-year median of 8.50)
GF Value™: HK$0.22 vs. price of HK$0.30 (36.4% above fair value)
Industry Position: 17.6% above the Construction median (#766 of 1734)
No single metric tells the full story. See the HKSE:01420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chuan Holdings Ltd is an earthwork contractor. The company's business segments are Earthworks and ancillary services; general construction works; and Property investment. The earthworks and related services include excavation, earth disposal, demolition, and various earthwork ancillary services; General construction works, including construction of new buildings, alternation, and addition works; and Property investment, includes Property leasing and management operations. It generates a majority of its revenue from the Earthworks ancillary services segment.
62GF Score
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