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China Boton Group CoHKSE:03318 52 Gross Margin % is 20.78% as of Dec. 2025, which is 49% below its 10-year median of 40.41. GuruFocus rates HKSE:03318 with a GF Score™ of 52/100 and a GF Value™ of HK$1.34 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,558 Chemicals companies, China Boton Group Co ranks better than 53.92% on this metric.
China Boton Group Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.2%.
The historical rank and industry rank for China Boton Group Co's Gross Margin % or its related term are showing as below:
HKSE:03318'
s Gross Margin % Range Over the Past 10 Years
Min: 25.19 Med: 40.41 Max: 56.7
Current: 25.19
During the past 13 years, the highestGross Margin % of China Boton Group Co was 56.70%. The lowest was 25.19%. And the median was 40.41%.
HKSE:03318's Gross Margin % is ranked better than 53.92% of 1558
companies
in the Chemicals industry
Industry Median: 23.505
vs HKSE:03318: 25.19
China Boton Group Co had a gross margin of 20.78% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for China Boton Group Co was -7.20% per year.
China Boton Group Co (HKSE:03318) 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 Boton Group Co had a gross margin of 20.78% 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 Boton Group Co Gross Margin % Related Terms
China Boton Group Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for China Boton Group Co'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:03318 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, China Boton 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.
China Boton Group Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, China Boton Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Boton 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.
China Boton Group Co (HKSE:03318) has a Gross Margin % of 20.78% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Boton Group Co and its competitors. This is 49% below median its historical median of 40.41. Over the past decade, China Boton Group Co's Gross Margin % has ranged from 25.19 to 56.70. According to the industry distribution chart, China Boton Group Co ranks #718 out of 1558 companies in the Chemicals industry, placing it in the top 46.1%.
Is China Boton Group Co's Gross Margin % too high?
China Boton Group Co's current Gross Margin % of 20.78% is 49% below median its 10-year median of 40.41. Over the past 10 years, this metric has ranged from a low of 25.19 to a high of 56.70. The Chemicals industry median Gross Margin % is 23.51. China Boton Group Co's value of 20.78% is 11.6% below this industry median. Based on the distribution chart, China Boton Group Co ranks #718 out of 1558 companies in the Chemicals industry, which is above the industry midpoint. Overall, China Boton Group Co has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Boton Group Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, China Boton Group Co ranks #718 out of 1558 companies for Gross Margin %. This puts China Boton Group Co in the upper half of its industry. The industry median Gross Margin % is 23.51. China Boton Group Co's value of 20.78% is 11.6% below this benchmark. Historically, China Boton Group Co's own Gross Margin % has ranged from 25.19 to 56.70 over the past decade. While the company's 10-year median is 40.41 vs. the industry median of 23.51, China Boton Group Co 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 a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.51, based on 1,558 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 Boton Group Co's current Gross Margin % of 20.78% is 11.6% 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 China Boton Group Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Boton Group Co's current Gross Margin % is 20.78%, which is 49% below median its own 10-year median of 40.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Boton Group Co stock overvalued right now?
Based on GuruFocus' analysis, China Boton Group Co (HKSE:03318) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.34, compared to a current price of HK$2.48 — trading 85.1% above its estimated fair value. The current Gross Margin % is 20.78%, which is 49% below median its 10-year median of 40.41 and 11.6% below the Chemicals industry median of 23.51. China Boton Group Co's overall GF Score™ is 52/100 with 10 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 Boton Group Co (HKSE:03318), the current Gross Margin % is 20.78% 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 Boton Group Co (HKSE:03318) Overvalued in 2026?
Based on GuruFocus' analysis, China Boton Group Co stock appears to be overvalued.
The current stock price of HK$2.48 is trading 85.1% above its estimated GF Value™ of HK$1.34.
GuruFocus considers China Boton Group Co to be Significantly Overvalued.
Key valuation signals for HKSE:03318:
Gross Margin %: 20.78% (49% below median its 10-year median of 40.41)
GF Value™: HK$1.34 vs. price of HK$2.48 (85.1% above fair value)
Industry Position: 11.6% below the Chemicals median (#718 of 1558)
No single metric tells the full story. See the HKSE:03318 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Boton Group Co Ltd is an investment holding company engaged in the manufacture and sale of flavors, fragrances, and healthcare products. The company operates its business through five business segments. The Flavor Enhancers segment is engaged in the development and sale of fragrance enhancer products. The Food Flavors segment is engaged in the production and sale of food flavors. The Fine Fragrances segment is engaged in the production and sale of fine fragrances. The e-Cigarette products segment comprises disposable e-Cigarettes and rechargeable e-Cigarettes and their accessories. The Investment Properties segment is engaged in real estate leasing. Its geographical segments are the PRC, Europe, the United States, Asia, and Others, of which prime revenue is derived from the PRC.
52GF Score
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