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China Rongzhong Financial Holdings Co (HKSE:03963) 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 Rongzhong Financial Holdings Co had a gross margin of 19.15% for the quarter that ended in Mar. 2026 => 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.
China Rongzhong Financial Holdings Co Gross Margin % Related Terms
China Rongzhong Financial 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.
China Rongzhong Financial Holdings Co Gross Margin % Chart
HKSE:03963 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, China Rongzhong Financial 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.
China Rongzhong Financial Holdings Co Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, China Rongzhong Financial Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Rongzhong Financial 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.
China Rongzhong Financial Holdings Co (HKSE:03963) has a Gross Margin % of 19.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Rongzhong Financial Holdings Co and its competitors. This is 67% below median its historical median of 58.02. Over the past decade, China Rongzhong Financial Holdings Co's Gross Margin % has ranged from 17.54 to 97.27. According to the industry distribution chart, China Rongzhong Financial Holdings Co ranks #320 out of 387 companies in the Credit Services industry, placing it in the top 82.7%.
Is China Rongzhong Financial Holdings Co's Gross Margin % too high?
China Rongzhong Financial Holdings Co's current Gross Margin % of 19.15% is 67% below median its 10-year median of 58.02. Over the past 10 years, this metric has ranged from a low of 17.54 to a high of 97.27. The Credit Services industry median Gross Margin % is 50.82. China Rongzhong Financial Holdings Co's value of 19.15% is 62.3% below this industry median. Based on the distribution chart, China Rongzhong Financial Holdings Co ranks #320 out of 387 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, China Rongzhong Financial Holdings Co has a GF Score™ of 33/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Rongzhong Financial Holdings Co's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, China Rongzhong Financial Holdings Co ranks #320 out of 387 companies for Gross Margin %. This places China Rongzhong Financial Holdings Co in the lower half of its industry. The industry median Gross Margin % is 50.82. China Rongzhong Financial Holdings Co's value of 19.15% is 62.3% below this benchmark. Historically, China Rongzhong Financial Holdings Co's own Gross Margin % has ranged from 17.54 to 97.27 over the past decade. While the company's 10-year median is 58.02 vs. the industry median of 50.82, China Rongzhong Financial 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 50.82, based on 387 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 Rongzhong Financial Holdings Co's current Gross Margin % of 19.15% is 62.3% 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 Rongzhong Financial Holdings Co and its competitors. For the Credit Services industry, the median Gross Margin % is 50.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Rongzhong Financial Holdings Co's current Gross Margin % is 19.15%, which is 67% below median its own 10-year median of 58.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Rongzhong Financial Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, China Rongzhong Financial Holdings Co (HKSE:03963) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.23, compared to a current price of HK$0.12 — trading 47.8% below its estimated fair value. The current Gross Margin % is 19.15%, which is 67% below median its 10-year median of 58.02 and 62.3% below the Credit Services industry median of 50.82. China Rongzhong Financial Holdings Co's overall GF Score™ is 33/100 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 China Rongzhong Financial Holdings Co (HKSE:03963), the current Gross Margin % is 19.15% 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 China Rongzhong Financial Holdings Co (HKSE:03963) Overvalued in 2026?
Based on GuruFocus' analysis, China Rongzhong Financial Holdings Co stock appears to be undervalued.
The current stock price of HK$0.12 is trading 47.8% below its estimated GF Value™ of HK$0.23.
GuruFocus considers China Rongzhong Financial Holdings Co to be Possible Value Trap.
Key valuation signals for HKSE:03963:
Gross Margin %: 19.15% (67% below median its 10-year median of 58.02)
GF Value™: HK$0.23 vs. price of HK$0.12 (47.8% below fair value)
Industry Position: 62.3% below the Credit Services median (#320 of 387)
No single metric tells the full story. See the HKSE:03963 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Rongzhong Financial Holdings Co Ltd provides financial leasing services in the People's Republic of China. It operates in two segments Leasing services which include direct leasing and operating leases; and Debt collection and credit investigation services. It also provides advisory and consultancy services to its finance lease customers. Its revenue is derived from the Debt collection and credit investigation services segment. The majority of the company's revenue from operations is derived from the People's Republic of China, and also has its presence in Hong Kong, Singapore.
33GF Score
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