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Shanxi Changcheng Microlight Equipment Co (HKSE:08286) 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
Shanxi Changcheng Microlight Equipment Co had a gross margin of 34.35% for the quarter that ended in Dec. 2025 => 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.
Shanxi Changcheng Microlight Equipment Co Gross Margin % Related Terms
Shanxi Changcheng Microlight Equipment 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.
Shanxi Changcheng Microlight Equipment Co Gross Margin % Chart
Shanxi Changcheng Microlight Equipment Co Annual Data
HKSE:08286 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Shanxi Changcheng Microlight Equipment 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.
Shanxi Changcheng Microlight Equipment Co Gross Margin % vs Hardware Industry
* 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.
Shanxi Changcheng Microlight Equipment Co (HKSE:08286) has a Gross Margin % of 34.35% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanxi Changcheng Microlight Equipment Co and its competitors. This is near median its historical median of 31.62. According to the industry distribution chart, Shanxi Changcheng Microlight Equipment Co ranks #767 out of 2455 companies in the Hardware industry, placing it in the top 31.2%.
Is Shanxi Changcheng Microlight Equipment Co's Gross Margin % too high?
Shanxi Changcheng Microlight Equipment Co's current Gross Margin % of 34.35% is near median its 10-year median of 31.62. The Hardware industry median Gross Margin % is 24.50. Shanxi Changcheng Microlight Equipment Co's value of 34.35% is 40.2% above this industry median. Based on the distribution chart, Shanxi Changcheng Microlight Equipment Co ranks #767 out of 2455 companies in the Hardware industry, which is above the industry midpoint. Overall, Shanxi Changcheng Microlight Equipment Co has a GF Score™ of 39/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanxi Changcheng Microlight Equipment Co's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Shanxi Changcheng Microlight Equipment Co ranks #767 out of 2455 companies for Gross Margin %. This puts Shanxi Changcheng Microlight Equipment Co in the upper half of its industry. The industry median Gross Margin % is 24.50. Shanxi Changcheng Microlight Equipment Co's value of 34.35% is 40.2% above this benchmark. While the company's 10-year median is 31.62 vs. the industry median of 24.50, Shanxi Changcheng Microlight Equipment Co 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,455 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. Shanxi Changcheng Microlight Equipment Co's current Gross Margin % of 34.35% is 40.2% 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 Shanxi Changcheng Microlight Equipment Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanxi Changcheng Microlight Equipment Co's current Gross Margin % is 34.35%, which is near median its own 10-year median of 31.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanxi Changcheng Microlight Equipment Co stock overvalued right now?
Based on GuruFocus' analysis, Shanxi Changcheng Microlight Equipment Co (HKSE:08286) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.12, compared to a current price of HK$0.11 — trading 10% below its estimated fair value. The current Gross Margin % is 34.35%, which is near median its 10-year median of 31.62 and 40.2% above the Hardware industry median of 24.50. Shanxi Changcheng Microlight Equipment Co's overall GF Score™ is 39/100 with 3 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 Shanxi Changcheng Microlight Equipment Co (HKSE:08286), the current Gross Margin % is 34.35% 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 Shanxi Changcheng Microlight Equipment Co (HKSE:08286) Overvalued in 2026?
Based on GuruFocus' analysis, Shanxi Changcheng Microlight Equipment Co stock appears to be undervalued.
The current stock price of HK$0.11 is trading 10% below its estimated GF Value™ of HK$0.12.
GuruFocus considers Shanxi Changcheng Microlight Equipment Co to be Modestly Undervalued.
Key valuation signals for HKSE:08286:
Gross Margin %: 34.35% (near median its 10-year median of 31.62)
GF Value™: HK$0.12 vs. price of HK$0.11 (10% below fair value)
Industry Position: 40.2% above the Hardware median (#767 of 2455)
No single metric tells the full story. See the HKSE:08286 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanxi Changcheng Microlight Equipment Co Business Description
Shanxi Changcheng Microlight Equipment Co Ltd is a China-based company engaged in the design, research, development, manufacture, and sale of image transmission fiber optic products. Image transmission fiber optics products manufactured by the company are image transmission devices containing a rigidly bundle of optical fibers arranged in an ordered fashion so that images can be transmitted from one end of the optical fiber bundle and displayed on the other end of the bundle. The company produces five main products, including fiber optic inverters, fiber optic straight plates, fiber optic face plates, fiber optic tapers and microchannel plates. The company geographically operates in PRC, Russia, Europe and Hong Kong, out of which PRC derives maximum revenue.
39GF Score
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