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China Sunshine Paper Holdings Co. (HKSE:02002) 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 Sunshine Paper Holdings Co. had a gross margin of 13.26% 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 Sunshine Paper Holdings Co. Gross Margin % Related Terms
China Sunshine Paper Holdings Co. 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.
China Sunshine Paper Holdings Co. Gross Margin % Chart
China Sunshine Paper Holdings Co. Gross Margin % Competitor Comparison
For the Paper & Paper Products subindustry, China Sunshine Paper Holdings Co.'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 Sunshine Paper Holdings Co. Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, China Sunshine Paper Holdings Co.'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Sunshine Paper Holdings Co.'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 Sunshine Paper Holdings Co. (HKSE:02002) has a Gross Margin % of 13.26% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Sunshine Paper Holdings Co. and its competitors. This is 26% below median its historical median of 17.90. Over the past decade, China Sunshine Paper Holdings Co.'s Gross Margin % has ranged from 12.20 to 21.57. According to the industry distribution chart, China Sunshine Paper Holdings Co. ranks #175 out of 278 companies in the Forest Products industry, placing it in the top 62.9%.
Is China Sunshine Paper Holdings Co.'s Gross Margin % too high?
China Sunshine Paper Holdings Co.'s current Gross Margin % of 13.26% is 26% below median its 10-year median of 17.90. Over the past 10 years, this metric has ranged from a low of 12.20 to a high of 21.57. The Forest Products industry median Gross Margin % is 18.83. China Sunshine Paper Holdings Co.'s value of 13.26% is 29.6% below this industry median. Based on the distribution chart, China Sunshine Paper Holdings Co. ranks #175 out of 278 companies in the Forest Products industry, which is below the industry midpoint. Overall, China Sunshine Paper Holdings Co. has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Sunshine Paper Holdings Co.'s Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, China Sunshine Paper Holdings Co. ranks #175 out of 278 companies for Gross Margin %. This places China Sunshine Paper Holdings Co. in the lower half of its industry. The industry median Gross Margin % is 18.83. China Sunshine Paper Holdings Co.'s value of 13.26% is 29.6% below this benchmark. Historically, China Sunshine Paper Holdings Co.'s own Gross Margin % has ranged from 12.20 to 21.57 over the past decade. While the company's 10-year median is 17.90 vs. the industry median of 18.83, China Sunshine Paper Holdings Co. 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 18.83, based on 278 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 Sunshine Paper Holdings Co.'s current Gross Margin % of 13.26% is 29.6% 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 Sunshine Paper Holdings Co. and its competitors. For the Forest Products industry, the median Gross Margin % is 18.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Sunshine Paper Holdings Co.'s current Gross Margin % is 13.26%, which is 26% below median its own 10-year median of 17.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Sunshine Paper Holdings Co. stock overvalued right now?
Based on GuruFocus' analysis, China Sunshine Paper Holdings Co. (HKSE:02002) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.81, compared to a current price of HK$0.90 — trading 50.3% below its estimated fair value. The current Gross Margin % is 13.26%, which is 26% below median its 10-year median of 17.90 and 29.6% below the Forest Products industry median of 18.83. China Sunshine Paper Holdings Co.'s overall GF Score™ is 62/100 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 China Sunshine Paper Holdings Co. (HKSE:02002), the current Gross Margin % is 13.26% 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 Sunshine Paper Holdings Co. (HKSE:02002) Overvalued in 2026?
Based on GuruFocus' analysis, China Sunshine Paper Holdings Co. stock appears to be undervalued.
The current stock price of HK$0.90 is trading 50.3% below its estimated GF Value™ of HK$1.81.
GuruFocus considers China Sunshine Paper Holdings Co. to be Possible Value Trap.
Key valuation signals for HKSE:02002:
Gross Margin %: 13.26% (26% below median its 10-year median of 17.90)
GF Value™: HK$1.81 vs. price of HK$0.90 (50.3% below fair value)
Industry Position: 29.6% below the Forest Products median (#175 of 278)
No single metric tells the full story. See the HKSE:02002 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Sunshine Paper Holdings Co. Business Description
China Sunshine Paper Holdings Co. Ltd is principally engaged in the production & sale of paper products, electricity, & steam. The business activity of the firm is operated through White Top Linerboard, Coated white top liner board, Core Board, Specialised Paper Products, Corrugated Paper, and Electricity & Steam segments. Key revenue is generated from Specialised Paper Products. The company offers products under three categories: Paper, which includes an Uncoated white top test liner, coated white top liner, core board base paper, medium, & specialty paper; Preprint products; & Carton products. Geographically, the company operates in the PRC & Overseas, in which the PRC generates the majority of its revenue.
62GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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