Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Zhong Ju Investment GroupHKSE:01959 +11.98%37 Gross Margin % is 3.09% as of Dec. 2025, which is 50% below its 10-year median of 6.24. GuruFocus rates HKSE:01959 with a GF Score™ of 37/100 and a GF Value™ of HK$0.11 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,307 Vehicles & Parts companies, Zhong Ju Investment Group ranks worse than 96.56% on this metric.
Zhong Ju Investment Group (HKSE:01959) 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
Zhong Ju Investment Group had a gross margin of 3.09% 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.
Zhong Ju Investment Group Gross Margin % Related Terms
Zhong Ju Investment 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:01959 vs CVNA, PAG, ALTB: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Zhong Ju Investment 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.
Zhong Ju Investment Group Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Zhong Ju Investment Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhong Ju Investment 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.
Zhong Ju Investment Group (HKSE:01959) has a Gross Margin % of 3.09% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhong Ju Investment Group and its competitors. This is 50% below median its historical median of 6.24. Over the past decade, Zhong Ju Investment Group's Gross Margin % has ranged from 1.31 to 8.99. According to the industry distribution chart, Zhong Ju Investment Group ranks #1262 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 96.6%.
Is Zhong Ju Investment Group's Gross Margin % too high?
Zhong Ju Investment Group's current Gross Margin % of 3.09% is 50% below median its 10-year median of 6.24. Over the past 10 years, this metric has ranged from a low of 1.31 to a high of 8.99. The Vehicles & Parts industry median Gross Margin % is 19.89. Zhong Ju Investment Group's value of 3.09% is 84.5% below this industry median. Based on the distribution chart, Zhong Ju Investment Group ranks #1262 out of 1307 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Zhong Ju Investment Group has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhong Ju Investment Group's Gross Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Zhong Ju Investment Group ranks #1262 out of 1307 companies for Gross Margin %. This places Zhong Ju Investment Group in the lower half of its industry. The industry median Gross Margin % is 19.89. Zhong Ju Investment Group's value of 3.09% is 84.5% below this benchmark. Historically, Zhong Ju Investment Group's own Gross Margin % has ranged from 1.31 to 8.99 over the past decade. While the company's 10-year median is 6.24 vs. the industry median of 19.89, Zhong Ju Investment 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.89, based on 1,307 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. Zhong Ju Investment Group's current Gross Margin % of 3.09% is 84.5% 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 Zhong Ju Investment Group and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhong Ju Investment Group's current Gross Margin % is 3.09%, which is 50% below median its own 10-year median of 6.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhong Ju Investment Group stock overvalued right now?
Based on GuruFocus' analysis, Zhong Ju Investment Group (HKSE:01959) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.11, compared to a current price of HK$1.87 — trading 1600% above its estimated fair value. The current Gross Margin % is 3.09%, which is 50% below median its 10-year median of 6.24 and 84.5% below the Vehicles & Parts industry median of 19.89. Zhong Ju Investment Group's overall GF Score™ is 37/100 with 2 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 Zhong Ju Investment Group (HKSE:01959), the current Gross Margin % is 3.09% 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 Zhong Ju Investment Group (HKSE:01959) Overvalued in 2026?
Based on GuruFocus' analysis, Zhong Ju Investment Group stock appears to be overvalued.
The current stock price of HK$1.87 is trading 1600% above its estimated GF Value™ of HK$0.11.
GuruFocus considers Zhong Ju Investment Group to be Significantly Overvalued.
Key valuation signals for HKSE:01959:
Gross Margin %: 3.09% (50% below median its 10-year median of 6.24)
GF Value™: HK$0.11 vs. price of HK$1.87 (1600% above fair value)
Industry Position: 84.5% below the Vehicles & Parts median (#1262 of 1307)
No single metric tells the full story. See the HKSE:01959 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhong Ju Investment Group Ltd is an investment holding company engaged in the sale and service of motor vehicles and the provision of services in the PRC. As a 4S dealership group providing one-stop car services, the Group offers a series of one-stop services, such as after-sales services and customer feedback, in addition to car sales. Other integrated auto services provided by the Group include repair and maintenance services, sales of spare parts, insurance agency services, and other services. The company derives all its revenue from Mainland China.
37GF Score
Get the complete analysis for HKSE:01959
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:01959 has been successfully added to your 
