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Yuanda China HoldingsHKSE:02789 -6.31%44 Gross Margin % is 27.57% as of Dec. 2025, which is 41% above its 10-year median of 19.52. GuruFocus rates HKSE:02789 with a GF Score™ of 44/100 and a GF Value™ of HK$0.05 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,729 Construction companies, Yuanda China Holdings ranks better than 60.84% on this metric.
Yuanda China Holdings (HKSE:02789) 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
Yuanda China Holdings had a gross margin of 27.57% 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.
Yuanda China Holdings Gross Margin % Related Terms
Yuanda China Holdings Gross Margin % Historical Data
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The historical data trend for Yuanda China Holdings'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:02789 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Yuanda China Holdings'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.
Yuanda China Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Yuanda China Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Yuanda China Holdings'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.
Yuanda China Holdings (HKSE:02789) has a Gross Margin % of 27.57% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Yuanda China Holdings and its competitors. This is 41% above median its historical median of 19.52. Over the past decade, Yuanda China Holdings' Gross Margin % has ranged from 11.87 to 26.08. According to the industry distribution chart, Yuanda China Holdings ranks #677 out of 1729 companies in the Construction industry, placing it in the top 39.2%.
Is Yuanda China Holdings' Gross Margin % too high?
Yuanda China Holdings' current Gross Margin % of 27.57% is 41% above median its 10-year median of 19.52. Over the past 10 years, this metric has ranged from a low of 11.87 to a high of 26.08. The Construction industry median Gross Margin % is 20.84. Yuanda China Holdings' value of 27.57% is 32.3% above this industry median. Based on the distribution chart, Yuanda China Holdings ranks #677 out of 1729 companies in the Construction industry, which is above the industry midpoint. Overall, Yuanda China Holdings has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Yuanda China Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Yuanda China Holdings ranks #677 out of 1729 companies for Gross Margin %. This puts Yuanda China Holdings in the upper half of its industry. The industry median Gross Margin % is 20.84. Yuanda China Holdings' value of 27.57% is 32.3% above this benchmark. Historically, Yuanda China Holdings' own Gross Margin % has ranged from 11.87 to 26.08 over the past decade. While the company's 10-year median is 19.52 vs. the industry median of 20.84, Yuanda China Holdings 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 Construction company?
The median Gross Margin % among Construction companies is 20.84, based on 1,729 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. Yuanda China Holdings's current Gross Margin % of 27.57% is 32.3% 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 Yuanda China Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yuanda China Holdings's current Gross Margin % is 27.57%, which is 41% above median its own 10-year median of 19.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yuanda China Holdings stock overvalued right now?
Based on GuruFocus' analysis, Yuanda China Holdings (HKSE:02789) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.19 — trading 286% above its estimated fair value. The current Gross Margin % is 27.57%, which is 41% above median its 10-year median of 19.52 and 32.3% above the Construction industry median of 20.84. Yuanda China Holdings' overall GF Score™ is 44/100 with 3 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 Yuanda China Holdings (HKSE:02789), the current Gross Margin % is 27.57% 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 Yuanda China Holdings (HKSE:02789) Overvalued in 2026?
Based on GuruFocus' analysis, Yuanda China Holdings stock appears to be overvalued.
The current stock price of HK$0.19 is trading 286% above its estimated GF Value™ of HK$0.05.
GuruFocus considers Yuanda China Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:02789:
Gross Margin %: 27.57% (41% above median its 10-year median of 19.52)
GF Value™: HK$0.05 vs. price of HK$0.19 (286% above fair value)
Industry Position: 32.3% above the Construction median (#677 of 1729)
No single metric tells the full story. See the HKSE:02789 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yuanda China Holdings Ltd principal activities of the Group are the design, procurement, production, sale and installation of curtain wall systems. It operates in two segments namely Domestic that comprises construction contracts carried out in Chinese Mainland; and Overseas that comprises construction contracts carried out outside of Chinese Mainland. The company's projects are China projects, United Kingdom projects, United States project, Europe projects, Australia projects, Middle East projects, Southeast Asia projects, Singapore projects, Japan and beyond projects. Its products are Curtain wall, Skylight, Metal roof system, Canopy, Breast Board system. The company has presence in Chinese Mainland, United Kingdom, Dubai, Cambodia, Saudi, Australia, United States of America, and Others.
44GF 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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