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Shouhui GroupHKSE:02621 +0.54%18 Gross Margin % is 31.29% as of Dec. 2025, which is 9% below its 10-year median of 34.27. GuruFocus rates HKSE:02621 with a GF Score™ of 18/100. The stock has 4 warning signs investors should review. Among 59 Insurance companies, Shouhui Group ranks worse than 61.02% on this metric.
Shouhui Group (HKSE:02621) 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
Shouhui Group had a gross margin of 31.29% 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.
Shouhui Group Gross Margin % Related Terms
Shouhui Group Gross Margin % Historical Data
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The historical data trend for Shouhui 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.
HKSE:02621 vs MRSH, AON, AJG: Gross Margin % Comparison
For the Insurance Brokers subindustry, Shouhui 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.
Shouhui Group Gross Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Shouhui Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shouhui 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.
Shouhui Group (HKSE:02621) has a Gross Margin % of 31.29% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shouhui Group and its competitors. This is near median its historical median of 34.27. Over the past decade, Shouhui Group's Gross Margin % has ranged from 32.85 to 38.13. According to the industry distribution chart, Shouhui Group ranks #36 out of 59 companies in the Insurance industry, placing it in the top 61%.
Is Shouhui Group's Gross Margin % too high?
Shouhui Group's current Gross Margin % of 31.29% is near median its 10-year median of 34.27. Over the past 10 years, this metric has ranged from a low of 32.85 to a high of 38.13. The Insurance industry median Gross Margin % is 42.31. Shouhui Group's value of 31.29% is 26% below this industry median. Based on the distribution chart, Shouhui Group ranks #36 out of 59 companies in the Insurance industry, which is below the industry midpoint. Overall, Shouhui Group has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Shouhui Group's Gross Margin % compare to MRSH and AON?
According to the Insurance industry distribution chart, Shouhui Group ranks #36 out of 59 companies for Gross Margin %. This places Shouhui Group in the lower half of its industry. The industry median Gross Margin % is 42.31. Shouhui Group's value of 31.29% is 26% below this benchmark. Historically, Shouhui Group's own Gross Margin % has ranged from 32.85 to 38.13 over the past decade. While the company's 10-year median is 34.27 vs. the industry median of 42.31, Shouhui 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 an Insurance company?
The median Gross Margin % among Insurance companies is 42.31, based on 59 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. Shouhui Group's current Gross Margin % of 31.29% is 26% 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 Shouhui Group and its competitors. For the Insurance industry, the median Gross Margin % is 42.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shouhui Group's current Gross Margin % is 31.29%, which is near median its own 10-year median of 34.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shouhui Group stock overvalued right now?
Shouhui Group (HKSE:02621) has a current Gross Margin % of 31.29%. The current Gross Margin % is 31.29%, which is near median its 10-year median of 34.27 and 26% below the Insurance industry median of 42.31. Shouhui Group's overall GF Score™ is 18/100 with 4 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 Shouhui Group (HKSE:02621), the current Gross Margin % is 31.29% 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.
Shouhui Group Ltd is a life and health insurance intermediary service provider in China, dedicated to providing insurance service solutions to policyholders and the insured online through life and health insurance transaction and service platforms. It distribute life and health insurance products through three distribution platforms, namely (1) online direct distribution on Xiaoyusan, (2) distribution via insurance agents on Kachabao, and (3) distribution with the assistance of business partners on Niubao 100. It operates in two reportable segments: Insurance transaction services and Insurance technology services. Key revenue is generated from Insurance transaction services which acts as the agent in distributing insurance products on behalf of the insurance companies.
18GF Score
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