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HKSE:02281's Gross Margin % is ranked better than 55.03% of 487
companies
in the Utilities - Regulated industry
Industry Median: 30.98
vs HKSE:02281: 33.44
Luzhou Xinglu Water (Group) Co had a gross margin of 35.08% for the quarter that ended in Dec. 2025 => Competition eroding margins
Luzhou Xinglu Water (Group) Co (HKSE:02281) 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
Luzhou Xinglu Water (Group) Co had a gross margin of 35.08% 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.
Luzhou Xinglu Water (Group) Co Gross Margin % Related Terms
Luzhou Xinglu Water (Group) 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.
Luzhou Xinglu Water (Group) Co Gross Margin % Chart
HKSE:02281 vs AWK, WTRG, AWR: Gross Margin % Comparison
For the Utilities - Regulated Water subindustry, Luzhou Xinglu Water (Group) 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.
Luzhou Xinglu Water (Group) Co Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Luzhou Xinglu Water (Group) Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Luzhou Xinglu Water (Group) 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.
Luzhou Xinglu Water (Group) Co (HKSE:02281) has a Gross Margin % of 35.08% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Luzhou Xinglu Water (Group) Co and its competitors. This is near median its historical median of 33.99. Over the past decade, Luzhou Xinglu Water (Group) Co's Gross Margin % has ranged from 18.16 to 43.86. According to the industry distribution chart, Luzhou Xinglu Water (Group) Co ranks #219 out of 487 companies in the Utilities - Regulated industry, placing it in the top 45%.
Is Luzhou Xinglu Water (Group) Co's Gross Margin % too high?
Luzhou Xinglu Water (Group) Co's current Gross Margin % of 35.08% is near median its 10-year median of 33.99. Over the past 10 years, this metric has ranged from a low of 18.16 to a high of 43.86. The Utilities - Regulated industry median Gross Margin % is 30.98. Luzhou Xinglu Water (Group) Co's value of 35.08% is 13.2% above this industry median. Based on the distribution chart, Luzhou Xinglu Water (Group) Co ranks #219 out of 487 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Luzhou Xinglu Water (Group) Co has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Luzhou Xinglu Water (Group) Co's Gross Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Luzhou Xinglu Water (Group) Co ranks #219 out of 487 companies for Gross Margin %. This puts Luzhou Xinglu Water (Group) Co in the upper half of its industry. The industry median Gross Margin % is 30.98. Luzhou Xinglu Water (Group) Co's value of 35.08% is 13.2% above this benchmark. Historically, Luzhou Xinglu Water (Group) Co's own Gross Margin % has ranged from 18.16 to 43.86 over the past decade. While the company's 10-year median is 33.99 vs. the industry median of 30.98, Luzhou Xinglu Water (Group) Co 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 an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.98, based on 487 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. Luzhou Xinglu Water (Group) Co's current Gross Margin % of 35.08% is 13.2% 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 Luzhou Xinglu Water (Group) Co and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luzhou Xinglu Water (Group) Co's current Gross Margin % is 35.08%, which is near median its own 10-year median of 33.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luzhou Xinglu Water (Group) Co stock overvalued right now?
Based on GuruFocus' analysis, Luzhou Xinglu Water (Group) Co (HKSE:02281) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.61, compared to a current price of HK$0.60 — trading 1.6% below its estimated fair value. The current Gross Margin % is 35.08%, which is near median its 10-year median of 33.99 and 13.2% above the Utilities - Regulated industry median of 30.98. Luzhou Xinglu Water (Group) Co's overall GF Score™ is 52/100 with 5 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 Luzhou Xinglu Water (Group) Co (HKSE:02281), the current Gross Margin % is 35.08% 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 Luzhou Xinglu Water (Group) Co (HKSE:02281) Overvalued in 2026?
Based on GuruFocus' analysis, Luzhou Xinglu Water (Group) Co stock appears to be undervalued.
The current stock price of HK$0.60 is trading 1.6% below its estimated GF Value™ of HK$0.61.
GuruFocus considers Luzhou Xinglu Water (Group) Co to be Fairly Valued.
Key valuation signals for HKSE:02281:
Gross Margin %: 35.08% (near median its 10-year median of 33.99)
GF Value™: HK$0.61 vs. price of HK$0.60 (1.6% below fair value)
Industry Position: 13.2% above the Utilities - Regulated median (#219 of 487)
No single metric tells the full story. See the HKSE:02281 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luzhou Xinglu Water (Group) Co Ltd is a China-based company that engages in the provision of integrated municipal water-related public utility services. The company is engaged in the provision of tap water supply and related installation and maintenance services, wastewater treatment services, and construction services. It operates through two main segments: the Tap Water Supply and Wastewater Treatment segments. The company derives maximum revenue from the Water Water Treatment segment. Geographically, it operates in the People's Republic of China.
52GF Score
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