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Hunlicar GroupHKSE:03638 -1.97%40 Gross Margin % is 31.93% as of Mar. 2026, which is 493% above its 10-year median of 5.38. GuruFocus rates HKSE:03638 with a GF Score™ of 40/100 and a GF Value™ of HK$2.66 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 506 Conglomerates companies, Hunlicar Group ranks better than 79.64% on this metric.
Hunlicar Group (HKSE:03638) 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
Hunlicar Group had a gross margin of 31.93% for the quarter that ended in Mar. 2026 => 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.
Hunlicar Group Gross Margin % Related Terms
Hunlicar Group Gross Margin % Historical Data
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The historical data trend for Hunlicar 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.
For the Conglomerates subindustry, Hunlicar 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.
Hunlicar Group Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hunlicar Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hunlicar 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.
Hunlicar Group (HKSE:03638) has a Gross Margin % of 31.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hunlicar Group and its competitors. This is 493% above median its historical median of 5.38. Over the past decade, Hunlicar Group's Gross Margin % has ranged from 1.29 to 42.53. According to the industry distribution chart, Hunlicar Group ranks #103 out of 506 companies in the Conglomerates industry, placing it in the top 20.4%.
Is Hunlicar Group's Gross Margin % too high?
Hunlicar Group's current Gross Margin % of 31.93% is 493% above median its 10-year median of 5.38. Over the past 10 years, this metric has ranged from a low of 1.29 to a high of 42.53. The Conglomerates industry median Gross Margin % is 26.09. Hunlicar Group's value of 31.93% is 22.4% above this industry median. Based on the distribution chart, Hunlicar Group ranks #103 out of 506 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Hunlicar Group has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hunlicar Group's Gross Margin % compare to MMM and HON?
According to the Conglomerates industry distribution chart, Hunlicar Group ranks #103 out of 506 companies for Gross Margin %. This places Hunlicar Group in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.09. Hunlicar Group's value of 31.93% is 22.4% above this benchmark. Historically, Hunlicar Group's own Gross Margin % has ranged from 1.29 to 42.53 over the past decade. While the company's 10-year median is 5.38 vs. the industry median of 26.09, Hunlicar Group 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 26.09, based on 506 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. Hunlicar Group's current Gross Margin % of 31.93% is 22.4% 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 Hunlicar Group and its competitors. For the Conglomerates industry, the median Gross Margin % is 26.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunlicar Group's current Gross Margin % is 31.93%, which is 493% above median its own 10-year median of 5.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunlicar Group stock overvalued right now?
Based on GuruFocus' analysis, Hunlicar Group (HKSE:03638) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$2.66, compared to a current price of HK$3.74 — trading 40.4% above its estimated fair value. The current Gross Margin % is 31.93%, which is 493% above median its 10-year median of 5.38 and 22.4% above the Conglomerates industry median of 26.09. Hunlicar Group's overall GF Score™ is 40/100 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 Hunlicar Group (HKSE:03638), the current Gross Margin % is 31.93% as of Mar. 2026. 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 Hunlicar Group (HKSE:03638) Overvalued in 2026?
Based on GuruFocus' analysis, Hunlicar Group stock appears to be overvalued.
The current stock price of HK$3.74 is trading 40.4% above its estimated GF Value™ of HK$2.66.
GuruFocus considers Hunlicar Group to be Significantly Overvalued.
Key valuation signals for HKSE:03638:
Gross Margin %: 31.93% (493% above median its 10-year median of 5.38)
GF Value™: HK$2.66 vs. price of HK$3.74 (40.4% above fair value)
Industry Position: 22.4% above the Conglomerates median (#103 of 506)
No single metric tells the full story. See the HKSE:03638 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunlicar Group Ltd is engaged in the fields of finance and technology. Its business covers financial and professional services, electronic product trading, food supply chain, and life technology, forming a two-wheel development model. Company has four business segments: Computer and Electronic Products Trading Business, Food Trading Business, Financial Services Business, and Family Office Services Business. Majority of revenue is from Computer and electronic products trading business. Company operates in Hong Kong and the PRC.
40GF Score
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