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Huaxi Holdings CoHKSE:01689 -3.45%37 Gross Margin % is 31.67% as of Dec. 2025, which is 4% below its 10-year median of 33.10. GuruFocus rates HKSE:01689 with a GF Score™ of 37/100 and a GF Value™ of HK$0.66 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 390 Packaging & Containers companies, Huaxi Holdings Co ranks better than 72.82% on this metric.
Huaxi Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -17.2%.
The historical rank and industry rank for Huaxi Holdings Co's Gross Margin % or its related term are showing as below:
HKSE:01689'
s Gross Margin % Range Over the Past 10 Years
Min: 5.13 Med: 33.1 Max: 40.61
Current: 31.05
During the past 13 years, the highestGross Margin % of Huaxi Holdings Co was 40.61%. The lowest was 5.13%. And the median was 33.10%.
HKSE:01689's Gross Margin % is ranked better than 72.82% of 390
companies
in the Packaging & Containers industry
Industry Median: 21.52
vs HKSE:01689: 31.05
Huaxi Holdings Co had a gross margin of 31.67% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Huaxi Holdings Co was -17.20% per year.
Huaxi Holdings Co (HKSE:01689) 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
Huaxi Holdings Co had a gross margin of 31.67% 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.
Huaxi Holdings Co Gross Margin % Related Terms
Huaxi Holdings Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Huaxi Holdings Co'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:01689 vs SW, PKG, IP: Gross Margin % Comparison
For the Packaging & Containers subindustry, Huaxi Holdings Co'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.
Huaxi Holdings Co Gross Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Huaxi Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Huaxi Holdings Co'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.
Huaxi Holdings Co (HKSE:01689) has a Gross Margin % of 31.67% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Huaxi Holdings Co and its competitors. This is near median its historical median of 33.10. Over the past decade, Huaxi Holdings Co's Gross Margin % has ranged from 5.13 to 40.61. According to the industry distribution chart, Huaxi Holdings Co ranks #106 out of 390 companies in the Packaging & Containers industry, placing it in the top 27.2%.
Is Huaxi Holdings Co's Gross Margin % too high?
Huaxi Holdings Co's current Gross Margin % of 31.67% is near median its 10-year median of 33.10. Over the past 10 years, this metric has ranged from a low of 5.13 to a high of 40.61. The Packaging & Containers industry median Gross Margin % is 21.52. Huaxi Holdings Co's value of 31.67% is 47.2% above this industry median. Based on the distribution chart, Huaxi Holdings Co ranks #106 out of 390 companies in the Packaging & Containers industry, which is above the industry midpoint. Overall, Huaxi Holdings Co has a GF Score™ of 37/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Huaxi Holdings Co's Gross Margin % compare to SW and PKG?
According to the Packaging & Containers industry distribution chart, Huaxi Holdings Co ranks #106 out of 390 companies for Gross Margin %. This puts Huaxi Holdings Co in the upper half of its industry. The industry median Gross Margin % is 21.52. Huaxi Holdings Co's value of 31.67% is 47.2% above this benchmark. Historically, Huaxi Holdings Co's own Gross Margin % has ranged from 5.13 to 40.61 over the past decade. While the company's 10-year median is 33.10 vs. the industry median of 21.52, Huaxi Holdings Co 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 Packaging & Containers company?
The median Gross Margin % among Packaging & Containers companies is 21.52, based on 390 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. Huaxi Holdings Co's current Gross Margin % of 31.67% is 47.2% 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 Huaxi Holdings Co and its competitors. For the Packaging & Containers industry, the median Gross Margin % is 21.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huaxi Holdings Co's current Gross Margin % is 31.67%, which is near median its own 10-year median of 33.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huaxi Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Huaxi Holdings Co (HKSE:01689) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.66, compared to a current price of HK$0.28 — trading 57.6% below its estimated fair value. The current Gross Margin % is 31.67%, which is near median its 10-year median of 33.10 and 47.2% above the Packaging & Containers industry median of 21.52. Huaxi Holdings Co's overall GF Score™ is 37/100 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 Huaxi Holdings Co (HKSE:01689), the current Gross Margin % is 31.67% 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 Huaxi Holdings Co (HKSE:01689) Overvalued in 2026?
Based on GuruFocus' analysis, Huaxi Holdings Co stock appears to be undervalued.
The current stock price of HK$0.28 is trading 57.6% below its estimated GF Value™ of HK$0.66.
GuruFocus considers Huaxi Holdings Co to be Possible Value Trap.
Key valuation signals for HKSE:01689:
Gross Margin %: 31.67% (near median its 10-year median of 33.10)
GF Value™: HK$0.66 vs. price of HK$0.28 (57.6% below fair value)
Industry Position: 47.2% above the Packaging & Containers median (#106 of 390)
No single metric tells the full story. See the HKSE:01689 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huaxi Holdings Co Ltd is an investment holding company. The Group is principally engaged in the segment of Cigarette Packaging Business and Environmental Treatment Business in the Chinese Mainland. The group generates the majority of its revenue from the Cigarette Packaging Business segment, that include manufacturing and sales of cigarette packaging materials.
37GF Score
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