Hua Xia Water Group (HKSE:08401) Gross Margin %: 12.15% (As of Mar. 2026) — 76% Below Median

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What is Hua Xia Water Group Gross Margin %?

Hua Xia Water Group HKSE:08401 Gross Margin % is 12.15% as of Mar. 2026, which is 76% below its 10-year median of 50.86. The stock has 5 warning signs investors should review. Among 942 Media - Diversified companies, Hua Xia Water Group ranks worse than 82.38% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Hua Xia Water Group's Gross Profit for the six months ended in Mar. 2026 was HK$4.55 Mil. Hua Xia Water Group's Revenue for the six months ended in Mar. 2026 was HK$37.42 Mil. Therefore, Hua Xia Water Group's Gross Margin % for the quarter that ended in Mar. 2026 was 12.15%.

Warning Sign:

Hua Xia Water Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -11.7%.


The historical rank and industry rank for Hua Xia Water Group's Gross Margin % or its related term are showing as below:

HKSE:08401' s Gross Margin % Range Over the Past 10 Years
Min: 16.08   Med: 50.86   Max: 72.72
Current: 16.08


During the past 11 years, the highest Gross Margin % of Hua Xia Water Group was 72.72%. The lowest was 16.08%. And the median was 50.86%.

HKSE:08401's Gross Margin % is ranked worse than
82.38% of 942 companies
in the Media - Diversified industry
Industry Median: 39.175 vs HKSE:08401: 16.08

Hua Xia Water Group had a gross margin of 12.15% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hua Xia Water Group was -11.70% per year.


Hua Xia Water Group  (HKSE:08401) 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

Hua Xia Water Group had a gross margin of 12.15% 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.


Hua Xia Water Group Gross Margin % Related Terms


Hua Xia Water Group Gross Margin % Historical Data

* Premium members only.

The historical data trend for Hua Xia Water 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.

Hua Xia Water Group Gross Margin % Chart

Hua Xia Water Group Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.60 39.61 34.10 59.42 16.08

Hua Xia Water Group Semi-Annual Data
Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.75 39.09 67.60 23.01 12.15

HKSE:08401 vs APP, OMC, TTD: Gross Margin % Comparison

For the Advertising Agencies subindustry, Hua Xia Water 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.


Hua Xia Water Group Gross Margin % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Hua Xia Water Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hua Xia Water Group's Gross Margin % falls into.



Hua Xia Water Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Hua Xia Water Group's Gross Margin for the fiscal year that ended in Mar. 2026 is calculated as

Gross Margin % (A: Mar. 2026 )=Gross Profit (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=9.4 / 58.645
=(Revenue - Cost of Goods Sold) / Revenue
=(58.645 - 49.217) / 58.645
=16.08 %

Hua Xia Water Group's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=4.5 / 37.421
=(Revenue - Cost of Goods Sold) / Revenue
=(37.421 - 32.876) / 37.421
=12.15 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 12.15% mean?
Hua Xia Water Group (HKSE:08401) has a Gross Margin % of 12.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hua Xia Water Group and its competitors. This is 76% below median its historical median of 50.86. Over the past decade, Hua Xia Water Group's Gross Margin % has ranged from 16.08 to 72.72. According to the industry distribution chart, Hua Xia Water Group ranks #776 out of 942 companies in the Media - Diversified industry, placing it in the top 82.4%.
Is Hua Xia Water Group's Gross Margin % too high?
Hua Xia Water Group's current Gross Margin % of 12.15% is 76% below median its 10-year median of 50.86. Over the past 10 years, this metric has ranged from a low of 16.08 to a high of 72.72. The Media - Diversified industry median Gross Margin % is 39.18. Hua Xia Water Group's value of 12.15% is 69% below this industry median. Based on the distribution chart, Hua Xia Water Group ranks #776 out of 942 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers.
How does Hua Xia Water Group's Gross Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Hua Xia Water Group ranks #776 out of 942 companies for Gross Margin %. This places Hua Xia Water Group in the lower half of its industry. The industry median Gross Margin % is 39.18. Hua Xia Water Group's value of 12.15% is 69% below this benchmark. Historically, Hua Xia Water Group's own Gross Margin % has ranged from 16.08 to 72.72 over the past decade. While the company's 10-year median is 50.86 vs. the industry median of 39.18, Hua Xia Water Group 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 39.18, based on 942 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. Hua Xia Water Group's current Gross Margin % of 12.15% is 69% 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 Hua Xia Water Group and its competitors. For the Media - Diversified industry, the median Gross Margin % is 39.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hua Xia Water Group's current Gross Margin % is 12.15%, which is 76% below median its own 10-year median of 50.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hua Xia Water Group stock overvalued right now?
Based on GuruFocus' analysis, Hua Xia Water Group (HKSE:08401) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.20, compared to a current price of HK$0.04 — trading 82% below its estimated fair value. The current Gross Margin % is 12.15%, which is 76% below median its 10-year median of 50.86 and 69% below the Media - Diversified industry median of 39.18. 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 Hua Xia Water Group (HKSE:08401), the current Gross Margin % is 12.15% 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.

Hua Xia Water Group Business Description

Address 74 Hung To Road, Unit 402A, 4th Floor, Benson Tower, Kwun Tong, Hong Kong, HKG
Stream Ideas Group Ltd is a Hong Kong-based investment holding company. The company is engaged in the provision of online advertising services. The online advertising services of the company comprise of social viral service, engager service, and mass blogging service. Geographically, the company derives a majority of its revenue from Hong Kong and also has a presence in Taiwan and Southeast Asia.