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Hebei Construction GroupHKSE:01727 -3.83%40 Gross Margin % is 4.40% as of Dec. 2025, which is 18% below its 10-year median of 5.35. GuruFocus rates HKSE:01727 with a GF Score™ of 40/100 and a GF Value™ of HK$0.25 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,729 Construction companies, Hebei Construction Group ranks worse than 90.34% on this metric.
Hebei Construction Group (HKSE:01727) 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
Hebei Construction Group had a gross margin of 4.40% 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.
Hebei Construction Group Gross Margin % Related Terms
Hebei Construction Group 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:01727 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Hebei Construction Group'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.
Hebei Construction Group Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Hebei Construction Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hebei Construction Group'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.
Hebei Construction Group (HKSE:01727) has a Gross Margin % of 4.40% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hebei Construction Group and its competitors. This is 18% below median its historical median of 5.35. Over the past decade, Hebei Construction Group's Gross Margin % has ranged from 4.09 to 5.75. According to the industry distribution chart, Hebei Construction Group ranks #1562 out of 1729 companies in the Construction industry, placing it in the top 90.3%.
Is Hebei Construction Group's Gross Margin % too high?
Hebei Construction Group's current Gross Margin % of 4.40% is 18% below median its 10-year median of 5.35. Over the past 10 years, this metric has ranged from a low of 4.09 to a high of 5.75. The Construction industry median Gross Margin % is 20.68. Hebei Construction Group's value of 4.40% is 78.7% below this industry median. Based on the distribution chart, Hebei Construction Group ranks #1562 out of 1729 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Hebei Construction Group has a GF Score™ of 40/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hebei Construction Group's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Hebei Construction Group ranks #1562 out of 1729 companies for Gross Margin %. This places Hebei Construction Group in the lower half of its industry. The industry median Gross Margin % is 20.68. Hebei Construction Group's value of 4.40% is 78.7% below this benchmark. Historically, Hebei Construction Group's own Gross Margin % has ranged from 4.09 to 5.75 over the past decade. While the company's 10-year median is 5.35 vs. the industry median of 20.68, Hebei Construction Group 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 Construction company?
The median Gross Margin % among Construction companies is 20.68, based on 1,729 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. Hebei Construction Group's current Gross Margin % of 4.40% is 78.7% 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 Hebei Construction Group and its competitors. For the Construction industry, the median Gross Margin % is 20.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hebei Construction Group's current Gross Margin % is 4.40%, which is 18% below median its own 10-year median of 5.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hebei Construction Group stock overvalued right now?
Based on GuruFocus' analysis, Hebei Construction Group (HKSE:01727) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.25, compared to a current price of HK$0.23 — trading 9.6% below its estimated fair value. The current Gross Margin % is 4.40%, which is 18% below median its 10-year median of 5.35 and 78.7% below the Construction industry median of 20.68. Hebei Construction Group's overall GF Score™ is 40/100 with 7 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 Hebei Construction Group (HKSE:01727), the current Gross Margin % is 4.40% 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 Hebei Construction Group (HKSE:01727) Overvalued in 2026?
Based on GuruFocus' analysis, Hebei Construction Group stock appears to be undervalued.
The current stock price of HK$0.23 is trading 9.6% below its estimated GF Value™ of HK$0.25.
GuruFocus considers Hebei Construction Group to be Modestly Undervalued.
Key valuation signals for HKSE:01727:
Gross Margin %: 4.40% (18% below median its 10-year median of 5.35)
GF Value™: HK$0.25 vs. price of HK$0.23 (9.6% below fair value)
Industry Position: 78.7% below the Construction median (#1562 of 1729)
No single metric tells the full story. See the HKSE:01727 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hebei Construction Group Corp Ltd is an engineering and construction company. The company's services include construction contracting works of residential, public, industrial, and commercial buildings. It has two segments that are Construction contracting business and Other business. The construction contracting business segment provides general contractors for building construction projects and infrastructure construction projects. Other segment mainly includes concession arrangements and other services of the group. The majority of the group's revenue is generated from Mainland China.
40GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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