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China Wantian HoldingsHKSE:01854 -0.42%66 Gross Margin % is 2.75% as of Dec. 2025, which is 82% below its 10-year median of 15.09. GuruFocus rates HKSE:01854 with a GF Score™ of 66/100 and a GF Value™ of HK$3.89 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 305 Retail - Defensive companies, China Wantian Holdings ranks worse than 95.41% on this metric.
China Wantian Holdings (HKSE:01854) 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
China Wantian Holdings had a gross margin of 2.75% 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.
China Wantian Holdings Gross Margin % Related Terms
China Wantian Holdings Gross Margin % Historical Data
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The historical data trend for China Wantian 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:01854 vs SYY, USFD, PFGC: Gross Margin % Comparison
For the Food Distribution subindustry, China Wantian 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.
China Wantian Holdings Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, China Wantian Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Wantian 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.
China Wantian Holdings (HKSE:01854) has a Gross Margin % of 2.75% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Wantian Holdings and its competitors. This is 82% below median its historical median of 15.09. Over the past decade, China Wantian Holdings' Gross Margin % has ranged from 3.47 to 25.21. According to the industry distribution chart, China Wantian Holdings ranks #291 out of 305 companies in the Retail - Defensive industry, placing it in the top 95.4%.
Is China Wantian Holdings' Gross Margin % too high?
China Wantian Holdings' current Gross Margin % of 2.75% is 82% below median its 10-year median of 15.09. Over the past 10 years, this metric has ranged from a low of 3.47 to a high of 25.21. The Retail - Defensive industry median Gross Margin % is 24.20. China Wantian Holdings' value of 2.75% is 88.6% below this industry median. Based on the distribution chart, China Wantian Holdings ranks #291 out of 305 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, China Wantian Holdings has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Wantian Holdings' Gross Margin % compare to SYY and USFD?
According to the Retail - Defensive industry distribution chart, China Wantian Holdings ranks #291 out of 305 companies for Gross Margin %. This places China Wantian Holdings in the lower half of its industry. The industry median Gross Margin % is 24.20. China Wantian Holdings' value of 2.75% is 88.6% below this benchmark. Historically, China Wantian Holdings' own Gross Margin % has ranged from 3.47 to 25.21 over the past decade. While the company's 10-year median is 15.09 vs. the industry median of 24.20, China Wantian Holdings 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 Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.20, based on 305 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. China Wantian Holdings's current Gross Margin % of 2.75% is 88.6% 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 China Wantian Holdings and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Wantian Holdings's current Gross Margin % is 2.75%, which is 82% below median its own 10-year median of 15.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Wantian Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Wantian Holdings (HKSE:01854) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.89, compared to a current price of HK$1.18 — trading 69.7% below its estimated fair value. The current Gross Margin % is 2.75%, which is 82% below median its 10-year median of 15.09 and 88.6% below the Retail - Defensive industry median of 24.20. China Wantian Holdings' overall GF Score™ is 66/100 with 4 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 China Wantian Holdings (HKSE:01854), the current Gross Margin % is 2.75% 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 China Wantian Holdings (HKSE:01854) Overvalued in 2026?
Based on GuruFocus' analysis, China Wantian Holdings stock appears to be undervalued.
The current stock price of HK$1.18 is trading 69.7% below its estimated GF Value™ of HK$3.89.
GuruFocus considers China Wantian Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01854:
Gross Margin %: 2.75% (82% below median its 10-year median of 15.09)
GF Value™: HK$3.89 vs. price of HK$1.18 (69.7% below fair value)
Industry Position: 88.6% below the Retail - Defensive median (#291 of 305)
No single metric tells the full story. See the HKSE:01854 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Wantian Holdings Ltd is an investment holding company, and its principal subsidiaries are engaged in food supply, catering services, and environmental protection and technology services. The Group has three reportable segments, namely food supply, catering services, and environmental protection and technology services. The company generates a majority of its revenue from its Food Supply segment, which includes sourcing, processing, and supplying of consumable fresh food ingredients in Hong Kong and the People's Republic of China (PRC). Its geographic operations include the People's Republic of China, which generates the majority of its revenue, and the rest from Hong Kong.
66GF Score
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