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What is Zhengye International Holdings Co Gross Margin %?
Zhengye International Holdings CoHKSE:03363 44 Gross Margin % is 12.19% as of Dec. 2025, which is 27% below its 10-year median of 16.79. GuruFocus rates HKSE:03363 with a GF Score™ of 44/100 and a GF Value™ of HK$0.41 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 279 Forest Products companies, Zhengye International Holdings Co ranks worse than 72.76% on this metric.
Zhengye International Holdings Co (HKSE:03363) 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
Zhengye International Holdings Co had a gross margin of 12.19% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
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.
Zhengye International Holdings Co Gross Margin % Related Terms
Zhengye International Holdings 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.
Zhengye International Holdings Co Gross Margin % Chart
Zhengye International Holdings Co Gross Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Zhengye International Holdings 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.
Zhengye International Holdings Co Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Zhengye International Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhengye International Holdings 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.
Zhengye International Holdings Co (HKSE:03363) has a Gross Margin % of 12.19% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhengye International Holdings Co and its competitors. This is 27% below median its historical median of 16.79. Over the past decade, Zhengye International Holdings Co's Gross Margin % has ranged from 10.79 to 22.02. According to the industry distribution chart, Zhengye International Holdings Co ranks #203 out of 279 companies in the Forest Products industry, placing it in the top 72.8%.
Is Zhengye International Holdings Co's Gross Margin % too high?
Zhengye International Holdings Co's current Gross Margin % of 12.19% is 27% below median its 10-year median of 16.79. Over the past 10 years, this metric has ranged from a low of 10.79 to a high of 22.02. The Forest Products industry median Gross Margin % is 18.89. Zhengye International Holdings Co's value of 12.19% is 35.5% below this industry median. Based on the distribution chart, Zhengye International Holdings Co ranks #203 out of 279 companies in the Forest Products industry, which is below the industry midpoint. Overall, Zhengye International Holdings Co has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhengye International Holdings Co's Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, Zhengye International Holdings Co ranks #203 out of 279 companies for Gross Margin %. This places Zhengye International Holdings Co in the lower half of its industry. The industry median Gross Margin % is 18.89. Zhengye International Holdings Co's value of 12.19% is 35.5% below this benchmark. Historically, Zhengye International Holdings Co's own Gross Margin % has ranged from 10.79 to 22.02 over the past decade. While the company's 10-year median is 16.79 vs. the industry median of 18.89, Zhengye International Holdings 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 18.89, based on 279 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. Zhengye International Holdings Co's current Gross Margin % of 12.19% is 35.5% 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 Zhengye International Holdings Co and its competitors. For the Forest Products industry, the median Gross Margin % is 18.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhengye International Holdings Co's current Gross Margin % is 12.19%, which is 27% below median its own 10-year median of 16.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhengye International Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Zhengye International Holdings Co (HKSE:03363) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.41, compared to a current price of HK$0.34 — trading 17.1% below its estimated fair value. The current Gross Margin % is 12.19%, which is 27% below median its 10-year median of 16.79 and 35.5% below the Forest Products industry median of 18.89. Zhengye International Holdings Co's overall GF Score™ is 44/100 with 8 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 Zhengye International Holdings Co (HKSE:03363), the current Gross Margin % is 12.19% 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 Zhengye International Holdings Co (HKSE:03363) Overvalued in 2026?
Based on GuruFocus' analysis, Zhengye International Holdings Co stock appears to be undervalued.
The current stock price of HK$0.34 is trading 17.1% below its estimated GF Value™ of HK$0.41.
GuruFocus considers Zhengye International Holdings Co to be Modestly Undervalued.
Key valuation signals for HKSE:03363:
Gross Margin %: 12.19% (27% below median its 10-year median of 16.79)
GF Value™: HK$0.41 vs. price of HK$0.34 (17.1% below fair value)
Industry Position: 35.5% below the Forest Products median (#203 of 279)
No single metric tells the full story. See the HKSE:03363 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhengye International Holdings Co Business Description
Zhengye International Holdings Co Ltd is an investment holding company. The company, along with its subsidiaries, is principally engaged in the manufacturing and sale of paper, paperboard and paper-based packaging products. Operating Segments of the company are: Packaging paper segment produces and sells corrugated medium paper and craft paper; and Paper-based packaging products segment produces and sells craft cartons, color-printed cartons, honeycomb paper products and color box packaging. It operates in PRC. It generates maximum revenue from Sales of packaging paper products.
44GF Score
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