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Huazhang Technology HoldingHKSE:01673 37 Gross Margin % is 22.21% as of Dec. 2025, which is 17% above its 10-year median of 18.97. GuruFocus rates HKSE:01673 with a GF Score™ of 37/100 and a GF Value™ of HK$0.17 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,998 Industrial Products companies, Huazhang Technology Holding ranks worse than 74.72% on this metric.
HKSE:01673's Gross Margin % is ranked worse than 74.72% of 2998
companies
in the Industrial Products industry
Industry Median: 26.775
vs HKSE:01673: 17.40
Huazhang Technology Holding had a gross margin of 22.21% for the quarter that ended in Dec. 2025 => Competition eroding margins
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
Huazhang Technology Holding had a gross margin of 22.21% 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.
Huazhang Technology Holding Gross Margin % Related Terms
Huazhang Technology Holding 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.
HKSE:01673 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Huazhang Technology Holding'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.
Huazhang Technology Holding Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Huazhang Technology Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Huazhang Technology Holding'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.
Huazhang Technology Holding (HKSE:01673) has a Gross Margin % of 22.21% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Huazhang Technology Holding and its competitors. This is 17% above median its historical median of 18.97. Over the past decade, Huazhang Technology Holding's Gross Margin % has ranged from 10.24 to 24.66. According to the industry distribution chart, Huazhang Technology Holding ranks #2240 out of 2998 companies in the Industrial Products industry, placing it in the top 74.7%.
Is Huazhang Technology Holding's Gross Margin % too high?
Huazhang Technology Holding's current Gross Margin % of 22.21% is 17% above median its 10-year median of 18.97. Over the past 10 years, this metric has ranged from a low of 10.24 to a high of 24.66. The Industrial Products industry median Gross Margin % is 26.78. Huazhang Technology Holding's value of 22.21% is 17% below this industry median. Based on the distribution chart, Huazhang Technology Holding ranks #2240 out of 2998 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Huazhang Technology Holding has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Huazhang Technology Holding's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Huazhang Technology Holding ranks #2240 out of 2998 companies for Gross Margin %. This places Huazhang Technology Holding in the lower half of its industry. The industry median Gross Margin % is 26.78. Huazhang Technology Holding's value of 22.21% is 17% below this benchmark. Historically, Huazhang Technology Holding's own Gross Margin % has ranged from 10.24 to 24.66 over the past decade. While the company's 10-year median is 18.97 vs. the industry median of 26.78, Huazhang Technology Holding 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 26.78, based on 2,998 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. Huazhang Technology Holding's current Gross Margin % of 22.21% is 17% 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 Huazhang Technology Holding and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huazhang Technology Holding's current Gross Margin % is 22.21%, which is 17% above median its own 10-year median of 18.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huazhang Technology Holding stock overvalued right now?
Based on GuruFocus' analysis, Huazhang Technology Holding (HKSE:01673) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.30 — trading 76.5% above its estimated fair value. The current Gross Margin % is 22.21%, which is 17% above median its 10-year median of 18.97 and 17% below the Industrial Products industry median of 26.78. Huazhang Technology Holding's overall GF Score™ is 37/100 with 8 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 Huazhang Technology Holding (HKSE:01673), the current Gross Margin % is 22.21% 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 Huazhang Technology Holding (HKSE:01673) Overvalued in 2026?
Based on GuruFocus' analysis, Huazhang Technology Holding stock appears to be overvalued.
The current stock price of HK$0.30 is trading 76.5% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Huazhang Technology Holding to be Significantly Overvalued.
Key valuation signals for HKSE:01673:
Gross Margin %: 22.21% (17% above median its 10-year median of 18.97)
GF Value™: HK$0.17 vs. price of HK$0.30 (76.5% above fair value)
Industry Position: 17% below the Industrial Products median (#2240 of 2998)
No single metric tells the full story. See the HKSE:01673 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huazhang Technology Holding Ltd is principally engaged in the research, development, manufacture, and sale of paper-making products in the People's Republic of China. The company operates through four segments. Its Industrial products segment includes paper-making-related production machines. The Project contracting services segment is a key revenue driver, which consists of system integration of complete-set paper-making equipment. Its Environmental products segment provides complete treatment for wastewater, sludge, solid waste, and others. The company's Supporting services segment relates to the after-sale and maintenance services, the sale of paper-making equipment parts, and other services.
37GF Score
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