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Renheng Enterprise HoldingsHKSE:03628 61 Gross Margin % is 50.98% as of Dec. 2025, which is 35% above its 10-year median of 37.68. GuruFocus rates HKSE:03628 with a GF Score™ of 61/100 and a GF Value™ of HK$0.17 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 3,005 Industrial Products companies, Renheng Enterprise Holdings ranks better than 87.69% on this metric.
HKSE:03628's Gross Margin % is ranked better than 87.69% of 3005
companies
in the Industrial Products industry
Industry Median: 26.98
vs HKSE:03628: 47.87
Renheng Enterprise Holdings had a gross margin of 50.98% for the quarter that ended in Dec. 2025 => Durable competitive advantage
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
Renheng Enterprise Holdings had a gross margin of 50.98% for the quarter that ended in Dec. 2025 => Durable 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.
Renheng Enterprise Holdings Gross Margin % Related Terms
Renheng Enterprise Holdings 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.
HKSE:03628 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Renheng Enterprise 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.
Renheng Enterprise Holdings Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Renheng Enterprise Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Renheng Enterprise 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.
Renheng Enterprise Holdings (HKSE:03628) has a Gross Margin % of 50.98% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Renheng Enterprise Holdings and its competitors. This is 35% above median its historical median of 37.68. Over the past decade, Renheng Enterprise Holdings' Gross Margin % has ranged from 27.55 to 47.87. According to the industry distribution chart, Renheng Enterprise Holdings ranks #370 out of 3005 companies in the Industrial Products industry, placing it in the top 12.3%.
Is Renheng Enterprise Holdings' Gross Margin % too high?
Renheng Enterprise Holdings' current Gross Margin % of 50.98% is 35% above median its 10-year median of 37.68. Over the past 10 years, this metric has ranged from a low of 27.55 to a high of 47.87. The Industrial Products industry median Gross Margin % is 26.98. Renheng Enterprise Holdings' value of 50.98% is 89% above this industry median. Based on the distribution chart, Renheng Enterprise Holdings ranks #370 out of 3005 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Renheng Enterprise Holdings has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Renheng Enterprise Holdings' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Renheng Enterprise Holdings ranks #370 out of 3005 companies for Gross Margin %. This places Renheng Enterprise Holdings in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.98. Renheng Enterprise Holdings' value of 50.98% is 89% above this benchmark. Historically, Renheng Enterprise Holdings' own Gross Margin % has ranged from 27.55 to 47.87 over the past decade. While the company's 10-year median is 37.68 vs. the industry median of 26.98, Renheng Enterprise 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.98, based on 3,005 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. Renheng Enterprise Holdings's current Gross Margin % of 50.98% is 89% 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 Renheng Enterprise Holdings and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renheng Enterprise Holdings's current Gross Margin % is 50.98%, which is 35% above median its own 10-year median of 37.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renheng Enterprise Holdings stock overvalued right now?
Based on GuruFocus' analysis, Renheng Enterprise Holdings (HKSE:03628) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.20 — trading 17.6% above its estimated fair value. The current Gross Margin % is 50.98%, which is 35% above median its 10-year median of 37.68 and 89% above the Industrial Products industry median of 26.98. Renheng Enterprise Holdings' overall GF Score™ is 61/100 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 Renheng Enterprise Holdings (HKSE:03628), the current Gross Margin % is 50.98% 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 Renheng Enterprise Holdings (HKSE:03628) Overvalued in 2026?
Based on GuruFocus' analysis, Renheng Enterprise Holdings stock appears to be overvalued.
The current stock price of HK$0.20 is trading 17.6% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Renheng Enterprise Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:03628:
Gross Margin %: 50.98% (35% above median its 10-year median of 37.68)
GF Value™: HK$0.17 vs. price of HK$0.20 (17.6% above fair value)
Industry Position: 89% above the Industrial Products median (#370 of 3005)
No single metric tells the full story. See the HKSE:03628 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renheng Enterprise Holdings Ltd is an investment holding company that along with its subsidiaries, is engaged in the manufacture and sale of tobacco machinery products in the PRC. The company mainly produces three types of cataloged special-purpose tobacco machinery products, namely casing and flavoring systems, pneumatic feeding systems, and pre-pressing packing machines. It is also engaged in providing maintenance, overhaul, and modification services for tobacco machinery products. The company generates a majority of its revenue from construction contracts for casing and flavouring systems. All of the Group's revenue are derived in the PRC.
61GF Score
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