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Shenglong Splendecor International (HKSE:08481) 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
Shenglong Splendecor International had a gross margin of 37.70% 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.
Shenglong Splendecor International Gross Margin % Related Terms
Shenglong Splendecor International 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.
Shenglong Splendecor International Gross Margin % Chart
Shenglong Splendecor International Gross Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Shenglong Splendecor International'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.
Shenglong Splendecor International Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Shenglong Splendecor International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shenglong Splendecor International'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.
Shenglong Splendecor International (HKSE:08481) has a Gross Margin % of 37.70% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shenglong Splendecor International and its competitors. This is 59% above median its historical median of 23.71. Over the past decade, Shenglong Splendecor International's Gross Margin % has ranged from 19.07 to 37.31. According to the industry distribution chart, Shenglong Splendecor International ranks #61 out of 278 companies in the Forest Products industry, placing it in the top 21.9%.
Is Shenglong Splendecor International's Gross Margin % too high?
Shenglong Splendecor International's current Gross Margin % of 37.70% is 59% above median its 10-year median of 23.71. Over the past 10 years, this metric has ranged from a low of 19.07 to a high of 37.31. The Forest Products industry median Gross Margin % is 18.83. Shenglong Splendecor International's value of 37.70% is 100.3% above this industry median. Based on the distribution chart, Shenglong Splendecor International ranks #61 out of 278 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, Shenglong Splendecor International has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shenglong Splendecor International's Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, Shenglong Splendecor International ranks #61 out of 278 companies for Gross Margin %. This places Shenglong Splendecor International in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 18.83. Shenglong Splendecor International's value of 37.70% is 100.3% above this benchmark. Historically, Shenglong Splendecor International's own Gross Margin % has ranged from 19.07 to 37.31 over the past decade. While the company's 10-year median is 23.71 vs. the industry median of 18.83, Shenglong Splendecor International 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 18.83, based on 278 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. Shenglong Splendecor International's current Gross Margin % of 37.70% is 100.3% 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 Shenglong Splendecor International and its competitors. For the Forest Products industry, the median Gross Margin % is 18.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenglong Splendecor International's current Gross Margin % is 37.70%, which is 59% above median its own 10-year median of 23.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenglong Splendecor International stock overvalued right now?
Based on GuruFocus' analysis, Shenglong Splendecor International (HKSE:08481) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.50, compared to a current price of HK$0.41 — trading 18% below its estimated fair value. The current Gross Margin % is 37.70%, which is 59% above median its 10-year median of 23.71 and 100.3% above the Forest Products industry median of 18.83. Shenglong Splendecor International's overall GF Score™ is 56/100 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 Shenglong Splendecor International (HKSE:08481), the current Gross Margin % is 37.70% 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 Shenglong Splendecor International (HKSE:08481) Overvalued in 2026?
Based on GuruFocus' analysis, Shenglong Splendecor International stock appears to be undervalued.
The current stock price of HK$0.41 is trading 18% below its estimated GF Value™ of HK$0.50.
GuruFocus considers Shenglong Splendecor International to be Modestly Undervalued.
Key valuation signals for HKSE:08481:
Gross Margin %: 37.70% (59% above median its 10-year median of 23.71)
GF Value™: HK$0.50 vs. price of HK$0.41 (18% below fair value)
Industry Position: 100.3% above the Forest Products median (#61 of 278)
No single metric tells the full story. See the HKSE:08481 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenglong Splendecor International Business Description
Shenglong Splendecor International Ltd is an investment holding. It is engaged in the manufacturing of decorative printing materials products based in China. Its products include melamine-impregnated paper, finish foil paper, PVC furniture film, and PVC flooring film. Geographically, the company derives a majority of its revenue from China followed by India, The United Arab Emirates, Pakistan, Indonesia and other countries.
56GF Score
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