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Guan Chao HoldingsHKSE:01872 -7.58%52 Gross Margin % is 8.46% as of Dec. 2025, which is 25% below its 10-year median of 11.32. GuruFocus rates HKSE:01872 with a GF Score™ of 52/100 and a GF Value™ of HK$0.39 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,309 Vehicles & Parts companies, Guan Chao Holdings ranks worse than 89.3% 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
Guan Chao Holdings had a gross margin of 8.46% 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.
Guan Chao Holdings Gross Margin % Related Terms
Guan Chao Holdings Gross Margin % Historical Data
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The historical data trend for Guan Chao 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:01872 vs CVNA, PAG, KMX: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Guan Chao 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.
Guan Chao Holdings Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Guan Chao Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Guan Chao 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.
Guan Chao Holdings (HKSE:01872) has a Gross Margin % of 8.46% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Guan Chao Holdings and its competitors. This is 25% below median its historical median of 11.32. Over the past decade, Guan Chao Holdings' Gross Margin % has ranged from 9.01 to 13.26. According to the industry distribution chart, Guan Chao Holdings ranks #1169 out of 1309 companies in the Vehicles & Parts industry, placing it in the top 89.3%.
Is Guan Chao Holdings' Gross Margin % too high?
Guan Chao Holdings' current Gross Margin % of 8.46% is 25% below median its 10-year median of 11.32. Over the past 10 years, this metric has ranged from a low of 9.01 to a high of 13.26. The Vehicles & Parts industry median Gross Margin % is 19.84. Guan Chao Holdings' value of 8.46% is 57.4% below this industry median. Based on the distribution chart, Guan Chao Holdings ranks #1169 out of 1309 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Guan Chao Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guan Chao Holdings' Gross Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Guan Chao Holdings ranks #1169 out of 1309 companies for Gross Margin %. This places Guan Chao Holdings in the lower half of its industry. The industry median Gross Margin % is 19.84. Guan Chao Holdings' value of 8.46% is 57.4% below this benchmark. Historically, Guan Chao Holdings' own Gross Margin % has ranged from 9.01 to 13.26 over the past decade. While the company's 10-year median is 11.32 vs. the industry median of 19.84, Guan Chao 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,309 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. Guan Chao Holdings's current Gross Margin % of 8.46% is 57.4% 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 Guan Chao Holdings and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guan Chao Holdings's current Gross Margin % is 8.46%, which is 25% below median its own 10-year median of 11.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guan Chao Holdings stock overvalued right now?
Based on GuruFocus' analysis, Guan Chao Holdings (HKSE:01872) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.39, compared to a current price of HK$3.90 — trading 900% above its estimated fair value. The current Gross Margin % is 8.46%, which is 25% below median its 10-year median of 11.32 and 57.4% below the Vehicles & Parts industry median of 19.84. Guan Chao Holdings' overall GF Score™ is 52/100 with 6 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 Guan Chao Holdings (HKSE:01872), the current Gross Margin % is 8.46% 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 Guan Chao Holdings (HKSE:01872) Overvalued in 2026?
Based on GuruFocus' analysis, Guan Chao Holdings stock appears to be overvalued.
The current stock price of HK$3.90 is trading 900% above its estimated GF Value™ of HK$0.39.
GuruFocus considers Guan Chao Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01872:
Gross Margin %: 8.46% (25% below median its 10-year median of 11.32)
GF Value™: HK$0.39 vs. price of HK$3.90 (900% above fair value)
Industry Position: 57.4% below the Vehicles & Parts median (#1169 of 1309)
No single metric tells the full story. See the HKSE:01872 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guan Chao Holdings Ltd is an investment holding company. The principal activities of the Group are sales of new parallel-import motor vehicles and pre-owned motor vehicles, provision of motor vehicle financing services and motor vehicle insurance agency services, sales of motor vehicle spare parts and accessories, and provision of motor vehicle leasing services. Its segment comprises Sales of motor vehicles and provision of related services; Rental income from operating lease of motor vehicles; Sales of spare parts and accessories; Sales of hair-care products; and manufacture and sales of lithium niobate crystals and lithium niobate thin films. The company generates the majority of its revenue from the sale of motor vehicles.
52GF Score
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