Canggang Railway (HKSE:02169) Gross Margin %: 33.87% (As of Dec. 2025) — 14% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

HKSE:02169 Canggang Railway Ltd HKSE:02169
50 GF Score
Price HK$0.50
GF Value HK$0.94
Valuation Possible Value Trap
! 8 Warning Signs
View Full Analysis

What is Canggang Railway Gross Margin %?

Canggang Railway HKSE:02169 +1.01% 50 Gross Margin % is 33.87% as of Dec. 2025, which is 14% below its 10-year median of 39.46. GuruFocus rates HKSE:02169 with a GF Score™ of 50/100 and a GF Value™ of HK$0.94 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 981 Transportation companies, Canggang Railway ranks better than 78.08% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Canggang Railway's Gross Profit for the six months ended in Dec. 2025 was HK$54.8 Mil. Canggang Railway's Revenue for the six months ended in Dec. 2025 was HK$161.8 Mil. Therefore, Canggang Railway's Gross Margin % for the quarter that ended in Dec. 2025 was 33.87%.

Warning Sign:

Canggang Railway Ltd gross margin has been in long-term decline. The average rate of decline per year is -2%.


The historical rank and industry rank for Canggang Railway's Gross Margin % or its related term are showing as below:

HKSE:02169' s Gross Margin % Range Over the Past 10 Years
Min: 34.25   Med: 39.46   Max: 41.95
Current: 36.66


During the past 9 years, the highest Gross Margin % of Canggang Railway was 41.95%. The lowest was 34.25%. And the median was 39.46%.

HKSE:02169's Gross Margin % is ranked better than
78.08% of 981 companies
in the Transportation industry
Industry Median: 20.37 vs HKSE:02169: 36.66

Canggang Railway had a gross margin of 33.87% for the quarter that ended in Dec. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Canggang Railway was -2.00% per year.


Canggang Railway  (HKSE:02169) 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

Canggang Railway had a gross margin of 33.87% 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.


Canggang Railway Gross Margin % Related Terms


Canggang Railway Gross Margin % Historical Data

* Premium members only.

The historical data trend for Canggang Railway'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.

Canggang Railway Gross Margin % Chart

Canggang Railway Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 38.59 34.25 41.22 35.57 36.68

Canggang Railway Semi-Annual Data
Dec17 Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 41.60 37.48 33.58 39.80 33.87

HKSE:02169 vs UNP, CSX, NSC: Gross Margin % Comparison

For the Railroads subindustry, Canggang Railway'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.


Canggang Railway Gross Margin % vs Transportation Industry

For the Transportation industry and Industrials sector, Canggang Railway's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Canggang Railway's Gross Margin % falls into.


HKSE:02169
50GF Score
Canggang Railway Ltd HKSE:02169
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Canggang Railway Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Canggang Railway's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=112.7 / 307.291
=(Revenue - Cost of Goods Sold) / Revenue
=(307.291 - 194.584) / 307.291
=36.68 %

Canggang Railway's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=54.8 / 161.795
=(Revenue - Cost of Goods Sold) / Revenue
=(161.795 - 106.994) / 161.795
=33.87 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 33.87% mean?
Canggang Railway (HKSE:02169) has a Gross Margin % of 33.87% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Canggang Railway and its competitors. This is 14% below median its historical median of 39.46. Over the past decade, Canggang Railway's Gross Margin % has ranged from 34.25 to 41.95. According to the industry distribution chart, Canggang Railway ranks #215 out of 981 companies in the Transportation industry, placing it in the top 21.9%.
Is Canggang Railway's Gross Margin % too high?
Canggang Railway's current Gross Margin % of 33.87% is 14% below median its 10-year median of 39.46. Over the past 10 years, this metric has ranged from a low of 34.25 to a high of 41.95. The Transportation industry median Gross Margin % is 20.37. Canggang Railway's value of 33.87% is 66.3% above this industry median. Based on the distribution chart, Canggang Railway ranks #215 out of 981 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Canggang Railway has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Canggang Railway's Gross Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Canggang Railway ranks #215 out of 981 companies for Gross Margin %. This places Canggang Railway in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.37. Canggang Railway's value of 33.87% is 66.3% above this benchmark. Historically, Canggang Railway's own Gross Margin % has ranged from 34.25 to 41.95 over the past decade. While the company's 10-year median is 39.46 vs. the industry median of 20.37, Canggang Railway 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.37, based on 981 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. Canggang Railway's current Gross Margin % of 33.87% is 66.3% 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 Canggang Railway and its competitors. For the Transportation industry, the median Gross Margin % is 20.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canggang Railway's current Gross Margin % is 33.87%, which is 14% below median its own 10-year median of 39.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canggang Railway stock overvalued right now?
Based on GuruFocus' analysis, Canggang Railway (HKSE:02169) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.94, compared to a current price of HK$0.50 — trading 46.8% below its estimated fair value. The current Gross Margin % is 33.87%, which is 14% below median its 10-year median of 39.46 and 66.3% above the Transportation industry median of 20.37. Canggang Railway's overall GF Score™ is 50/100 with 8 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 Canggang Railway (HKSE:02169), the current Gross Margin % is 33.87% 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 Canggang Railway (HKSE:02169) Overvalued in 2026?

Based on GuruFocus' analysis, Canggang Railway stock appears to be undervalued. The current stock price of HK$0.50 is trading 46.8% below its estimated GF Value™ of HK$0.94. GuruFocus considers Canggang Railway to be Possible Value Trap.

Key valuation signals for HKSE:02169:

  • Gross Margin %: 33.87% (14% below median its 10-year median of 39.46)
  • GF Value™: HK$0.94 vs. price of HK$0.50 (46.8% below fair value)
  • GF Score™: 50/100 with 8 warning signs
  • Industry Position: 66.3% above the Transportation median (#215 of 981)

No single metric tells the full story. See the HKSE:02169 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Canggang Railway Business Description

Address Yangzhuang Station, Yangerzhuang Town, Huanghua, Hebei Province, Cangzhou, CHN
Canggang Railway Ltd is a local railway operator based in Hebei Province. The company operates in two segments, rail freight transportation services, which provides rail freight transportation in the PRC; and other ancillary services, which includes provides freight loading and unloading services, road freight transportation and other services in the PRC. Its services also include loading and unloading, road freight transportation, construction, repair and maintenance of Special Service Lines, railway roadbed and other railway facility construction, and certain other businesses. The company earns its revenue from rail freight transportation services and ancillary services in the PRC.
50GF Score

Get the complete analysis for HKSE:02169

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.50
Price
HK$0.94
GF Value