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Zonqing EnvironmentalHKSE:01855 +0.51%68 Gross Margin % is 22.16% as of Dec. 2025, which is 2% below its 10-year median of 22.55. GuruFocus rates HKSE:01855 with a GF Score™ of 68/100 and a GF Value™ of HK$6.71 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,731 Construction companies, Zonqing Environmental ranks better than 50.49% on this metric.
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
Zonqing Environmental had a gross margin of 22.16% 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.
Zonqing Environmental Gross Margin % Related Terms
Zonqing Environmental Gross Margin % Historical Data
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The historical data trend for Zonqing Environmental'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:01855 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Zonqing Environmental'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.
Zonqing Environmental Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Zonqing Environmental's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zonqing Environmental'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.
Zonqing Environmental (HKSE:01855) has a Gross Margin % of 22.16% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zonqing Environmental and its competitors. This is near median its historical median of 22.55. Over the past decade, Zonqing Environmental's Gross Margin % has ranged from 17.35 to 26.00. According to the industry distribution chart, Zonqing Environmental ranks #857 out of 1731 companies in the Construction industry, placing it in the top 49.5%.
Is Zonqing Environmental's Gross Margin % too high?
Zonqing Environmental's current Gross Margin % of 22.16% is near median its 10-year median of 22.55. Over the past 10 years, this metric has ranged from a low of 17.35 to a high of 26.00. The Construction industry median Gross Margin % is 20.79. Zonqing Environmental's value of 22.16% is 6.6% above this industry median. Based on the distribution chart, Zonqing Environmental ranks #857 out of 1731 companies in the Construction industry, which is above the industry midpoint. Overall, Zonqing Environmental has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zonqing Environmental's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Zonqing Environmental ranks #857 out of 1731 companies for Gross Margin %. This puts Zonqing Environmental in the upper half of its industry. The industry median Gross Margin % is 20.79. Zonqing Environmental's value of 22.16% is 6.6% above this benchmark. Historically, Zonqing Environmental's own Gross Margin % has ranged from 17.35 to 26.00 over the past decade. While the company's 10-year median is 22.55 vs. the industry median of 20.79, Zonqing Environmental 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 Construction company?
The median Gross Margin % among Construction companies is 20.79, 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. Zonqing Environmental's current Gross Margin % of 22.16% is 6.6% 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 Zonqing Environmental and its competitors. For the Construction industry, the median Gross Margin % is 20.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zonqing Environmental's current Gross Margin % is 22.16%, which is near median its own 10-year median of 22.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zonqing Environmental stock overvalued right now?
Based on GuruFocus' analysis, Zonqing Environmental (HKSE:01855) is currently considered Possible Value Trap. The stock's GF Value™ is HK$6.71, compared to a current price of HK$0.20 — trading 97.1% below its estimated fair value. The current Gross Margin % is 22.16%, which is near median its 10-year median of 22.55 and 6.6% above the Construction industry median of 20.79. Zonqing Environmental's overall GF Score™ is 68/100 with 5 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 Zonqing Environmental (HKSE:01855), the current Gross Margin % is 22.16% 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 Zonqing Environmental (HKSE:01855) Overvalued in 2026?
Based on GuruFocus' analysis, Zonqing Environmental stock appears to be undervalued.
The current stock price of HK$0.20 is trading 97.1% below its estimated GF Value™ of HK$6.71.
GuruFocus considers Zonqing Environmental to be Possible Value Trap.
Key valuation signals for HKSE:01855:
Gross Margin %: 22.16% (near median its 10-year median of 22.55)
GF Value™: HK$6.71 vs. price of HK$0.20 (97.1% below fair value)
Industry Position: 6.6% above the Construction median (#857 of 1731)
No single metric tells the full story. See the HKSE:01855 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zonqing Environmental Ltd is principally engaged in city renewal services, city operation and maintenance services, town planning design services and cultural tourism.. Its business segments include City renewal construction services: City operation and maintenance services: Town planning design services: and Cultural tourism. A majority of revenue is derived from the City renewal construction services segment includes construction engineering services in various fields such as landscaping and municipal project. The group's revenue is generated in the PRC.
68GF Score
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