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China Graphite GroupHKSE:02237 54 Gross Margin % is 34.44% as of Dec. 2025, which is 27% below its 10-year median of 46.90. GuruFocus rates HKSE:02237 with a GF Score™ of 54/100 and a GF Value™ of HK$0.33 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 733 Metals & Mining companies, China Graphite Group ranks better than 52.8% on this metric.
China Graphite Group (HKSE:02237) 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 Graphite Group had a gross margin of 34.44% 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.
China Graphite Group Gross Margin % Related Terms
China Graphite Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for China Graphite Group'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.
China Graphite Group Gross Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, China Graphite 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.
China Graphite Group Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, China Graphite Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Graphite 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.
China Graphite Group (HKSE:02237) has a Gross Margin % of 34.44% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Graphite Group and its competitors. This is 27% below median its historical median of 46.90. Over the past decade, China Graphite Group's Gross Margin % has ranged from 29.20 to 49.67. According to the industry distribution chart, China Graphite Group ranks #346 out of 733 companies in the Metals & Mining industry, placing it in the top 47.2%.
Is China Graphite Group's Gross Margin % too high?
China Graphite Group's current Gross Margin % of 34.44% is 27% below median its 10-year median of 46.90. Over the past 10 years, this metric has ranged from a low of 29.20 to a high of 49.67. The Metals & Mining industry median Gross Margin % is 27.06. China Graphite Group's value of 34.44% is 27.3% above this industry median. Based on the distribution chart, China Graphite Group ranks #346 out of 733 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, China Graphite Group has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Graphite Group's Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, China Graphite Group ranks #346 out of 733 companies for Gross Margin %. This puts China Graphite Group in the upper half of its industry. The industry median Gross Margin % is 27.06. China Graphite Group's value of 34.44% is 27.3% above this benchmark. Historically, China Graphite Group's own Gross Margin % has ranged from 29.20 to 49.67 over the past decade. While the company's 10-year median is 46.90 vs. the industry median of 27.06, China Graphite Group 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 27.06, based on 733 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 Graphite Group's current Gross Margin % of 34.44% is 27.3% 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 China Graphite Group and its competitors. For the Metals & Mining industry, the median Gross Margin % is 27.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Graphite Group's current Gross Margin % is 34.44%, which is 27% below median its own 10-year median of 46.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Graphite Group stock overvalued right now?
Based on GuruFocus' analysis, China Graphite Group (HKSE:02237) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.33, compared to a current price of HK$0.21 — trading 37.9% below its estimated fair value. The current Gross Margin % is 34.44%, which is 27% below median its 10-year median of 46.90 and 27.3% above the Metals & Mining industry median of 27.06. China Graphite Group's overall GF Score™ is 54/100 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 Graphite Group (HKSE:02237), the current Gross Margin % is 34.44% 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 Graphite Group (HKSE:02237) Overvalued in 2026?
Based on GuruFocus' analysis, China Graphite Group stock appears to be undervalued.
The current stock price of HK$0.21 is trading 37.9% below its estimated GF Value™ of HK$0.33.
GuruFocus considers China Graphite Group to be Possible Value Trap.
Key valuation signals for HKSE:02237:
Gross Margin %: 34.44% (27% below median its 10-year median of 46.90)
GF Value™: HK$0.33 vs. price of HK$0.21 (37.9% below fair value)
Industry Position: 27.3% above the Metals & Mining median (#346 of 733)
No single metric tells the full story. See the HKSE:02237 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Graphite Group Ltd is engaged in the manufacturing and sale of graphite products, focusing on the production and sale of flake graphite concentrate and spherical graphite in the PRC. The company operates through reportable segments comprising the sale of flake graphite concentrate, which generates the majority of its revenue, and the sale of spherical graphite and its by-products, along with unprocessed marble.
54GF Score
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