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Central New Energy Holding Group (HKSE:01735) 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
Central New Energy Holding Group had a gross margin of 1.78% 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.
Central New Energy Holding Group Gross Margin % Related Terms
Central New Energy Holding 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.
Central New Energy Holding Group Gross Margin % Chart
HKSE:01735 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Central New Energy Holding 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.
Central New Energy Holding Group Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Central New Energy Holding Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Central New Energy Holding 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.
Central New Energy Holding Group (HKSE:01735) has a Gross Margin % of 1.78% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Central New Energy Holding Group and its competitors. This is 57% below median its historical median of 4.15. Over the past decade, Central New Energy Holding Group's Gross Margin % has ranged from 1.91 to 26.72. According to the industry distribution chart, Central New Energy Holding Group ranks #1650 out of 1731 companies in the Construction industry, placing it in the top 95.3%.
Is Central New Energy Holding Group's Gross Margin % too high?
Central New Energy Holding Group's current Gross Margin % of 1.78% is 57% below median its 10-year median of 4.15. Over the past 10 years, this metric has ranged from a low of 1.91 to a high of 26.72. The Construction industry median Gross Margin % is 20.84. Central New Energy Holding Group's value of 1.78% is 91.5% below this industry median. Based on the distribution chart, Central New Energy Holding Group ranks #1650 out of 1731 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Central New Energy Holding Group has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Central New Energy Holding Group's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Central New Energy Holding Group ranks #1650 out of 1731 companies for Gross Margin %. This places Central New Energy Holding Group in the lower half of its industry. The industry median Gross Margin % is 20.84. Central New Energy Holding Group's value of 1.78% is 91.5% below this benchmark. Historically, Central New Energy Holding Group's own Gross Margin % has ranged from 1.91 to 26.72 over the past decade. While the company's 10-year median is 4.15 vs. the industry median of 20.84, Central New Energy Holding 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 20.84, 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. Central New Energy Holding Group's current Gross Margin % of 1.78% is 91.5% 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 Central New Energy Holding Group 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. Central New Energy Holding Group's current Gross Margin % is 1.78%, which is 57% below median its own 10-year median of 4.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central New Energy Holding Group stock overvalued right now?
Based on GuruFocus' analysis, Central New Energy Holding Group (HKSE:01735) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$20.59, compared to a current price of HK$8.21 — trading 60.1% below its estimated fair value. The current Gross Margin % is 1.78%, which is 57% below median its 10-year median of 4.15 and 91.5% below the Construction industry median of 20.84. Central New Energy Holding Group's overall GF Score™ is 74/100 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 Central New Energy Holding Group (HKSE:01735), the current Gross Margin % is 1.78% 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 Central New Energy Holding Group (HKSE:01735) Overvalued in 2026?
Based on GuruFocus' analysis, Central New Energy Holding Group stock appears to be undervalued.
The current stock price of HK$8.21 is trading 60.1% below its estimated GF Value™ of HK$20.59.
GuruFocus considers Central New Energy Holding Group to be Significantly Undervalued.
Key valuation signals for HKSE:01735:
Gross Margin %: 1.78% (57% below median its 10-year median of 4.15)
GF Value™: HK$20.59 vs. price of HK$8.21 (60.1% below fair value)
Industry Position: 91.5% below the Construction median (#1650 of 1731)
No single metric tells the full story. See the HKSE:01735 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Central New Energy Holding Group Ltd is an investment holding company. The Group is principally engaged in the business of new energy and engineering, procurement, and construction (EPC); green building and construction-related business in Hong Kong and the People's Republic of China (the PRC); smart energy management services; health and wellness; and food and beverage (F&B) supply chain. It generates the majority of its revenue from the New Energy and EPC segment, which provides manufacturing and sales of photovoltaic products and EPC services. Its geographic operations are located in both Hong Kong and the PRC. The group generates the majority of its revenue from the PRC.
74GF Score
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