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Yunnan Water Investment CoHKSE:06839 -12.87%24 Gross Margin % is 2.09% as of Dec. 2025, which is 91% below its 10-year median of 24.44. GuruFocus rates HKSE:06839 with a GF Score™ of 24/100 and a GF Value™ of HK$0.15 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 489 Utilities - Regulated companies, Yunnan Water Investment Co ranks worse than 93.25% on this metric.
HKSE:06839's Gross Margin % is ranked worse than 93.25% of 489
companies
in the Utilities - Regulated industry
Industry Median: 30.63
vs HKSE:06839: 7.31
Yunnan Water Investment Co had a gross margin of 2.09% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Yunnan Water Investment Co (HKSE:06839) 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
Yunnan Water Investment Co had a gross margin of 2.09% 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.
Yunnan Water Investment Co Gross Margin % Related Terms
Yunnan Water Investment 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.
HKSE:06839 vs AWK, WTRG, AWR: Gross Margin % Comparison
For the Utilities - Regulated Water subindustry, Yunnan Water Investment 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.
Yunnan Water Investment Co Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Yunnan Water Investment Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Yunnan Water Investment 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.
Yunnan Water Investment Co (HKSE:06839) has a Gross Margin % of 2.09% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Yunnan Water Investment Co and its competitors. This is 91% below median its historical median of 24.44. Over the past decade, Yunnan Water Investment Co's Gross Margin % has ranged from 7.31 to 30.69. According to the industry distribution chart, Yunnan Water Investment Co ranks #456 out of 489 companies in the Utilities - Regulated industry, placing it in the top 93.3%.
Is Yunnan Water Investment Co's Gross Margin % too high?
Yunnan Water Investment Co's current Gross Margin % of 2.09% is 91% below median its 10-year median of 24.44. Over the past 10 years, this metric has ranged from a low of 7.31 to a high of 30.69. The Utilities - Regulated industry median Gross Margin % is 30.63. Yunnan Water Investment Co's value of 2.09% is 93.2% below this industry median. Based on the distribution chart, Yunnan Water Investment Co ranks #456 out of 489 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Yunnan Water Investment Co has a GF Score™ of 24/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Yunnan Water Investment Co's Gross Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Yunnan Water Investment Co ranks #456 out of 489 companies for Gross Margin %. This places Yunnan Water Investment Co in the lower half of its industry. The industry median Gross Margin % is 30.63. Yunnan Water Investment Co's value of 2.09% is 93.2% below this benchmark. Historically, Yunnan Water Investment Co's own Gross Margin % has ranged from 7.31 to 30.69 over the past decade. While the company's 10-year median is 24.44 vs. the industry median of 30.63, Yunnan Water Investment 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 an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.63, based on 489 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. Yunnan Water Investment Co's current Gross Margin % of 2.09% is 93.2% 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 Yunnan Water Investment Co and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yunnan Water Investment Co's current Gross Margin % is 2.09%, which is 91% below median its own 10-year median of 24.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yunnan Water Investment Co stock overvalued right now?
Based on GuruFocus' analysis, Yunnan Water Investment Co (HKSE:06839) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.15, compared to a current price of HK$0.09 — trading 41.3% below its estimated fair value. The current Gross Margin % is 2.09%, which is 91% below median its 10-year median of 24.44 and 93.2% below the Utilities - Regulated industry median of 30.63. Yunnan Water Investment Co's overall GF Score™ is 24/100 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 Yunnan Water Investment Co (HKSE:06839), the current Gross Margin % is 2.09% 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 Yunnan Water Investment Co (HKSE:06839) Overvalued in 2026?
Based on GuruFocus' analysis, Yunnan Water Investment Co stock appears to be undervalued.
The current stock price of HK$0.09 is trading 41.3% below its estimated GF Value™ of HK$0.15.
GuruFocus considers Yunnan Water Investment Co to be Possible Value Trap.
Key valuation signals for HKSE:06839:
Gross Margin %: 2.09% (91% below median its 10-year median of 24.44)
GF Value™: HK$0.15 vs. price of HK$0.09 (41.3% below fair value)
Industry Position: 93.2% below the Utilities - Regulated median (#456 of 489)
No single metric tells the full story. See the HKSE:06839 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yunnan Water Investment Co Ltd is an investment holding company engaged in developing, designing, constructing, operating, and maintaining municipal water supply, wastewater treatment, and solid waste treatment facilities. The Group is organized into five business segments: Wastewater treatment project construction and operation, Water supply project construction and operation, Construction and sales of equipment, Solid waste treatment project construction and operation, and Others, including operation and maintenance services and other businesses. The company operates in Mainland China, Indonesia, Thailand, and Hong Kong, of which Mainland China accounts for the majority of the revenue.
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