Chu Yu Hsiang Co (ROCO:2760) Gross Margin %: -11.02% (As of Dec. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ROCO:2760 Chu Yu Hsiang Co Ltd ROCO:2760
40 GF Score
Price NT$12.40
GF Value NT$65.69
Valuation Possible Value Trap
! 8 Warning Signs
View Full Analysis

What is Chu Yu Hsiang Co Gross Margin %?

Chu Yu Hsiang Co ROCO:2760 +4.20% 40 Gross Margin % is -11.02% as of Dec. 2025. GuruFocus rates ROCO:2760 with a GF Score™ of 40/100 and a GF Value™ of NT$65.69 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 354 Restaurants companies, Chu Yu Hsiang Co ranks worse than 90.96% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Chu Yu Hsiang Co's Gross Profit for the six months ended in Dec. 2025 was NT$-12.5 Mil. Chu Yu Hsiang Co's Revenue for the six months ended in Dec. 2025 was NT$113.0 Mil. Therefore, Chu Yu Hsiang Co's Gross Margin % for the quarter that ended in Dec. 2025 was -11.02%.

Warning Sign:

Chu Yu Hsiang Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -13.7%.


The historical rank and industry rank for Chu Yu Hsiang Co's Gross Margin % or its related term are showing as below:

ROCO:2760' s Gross Margin % Range Over the Past 10 Years
Min: 14.31   Med: 51.04   Max: 61.25
Current: 14.32


During the past 7 years, the highest Gross Margin % of Chu Yu Hsiang Co was 61.25%. The lowest was 14.31%. And the median was 51.04%.

ROCO:2760's Gross Margin % is ranked worse than
90.96% of 354 companies
in the Restaurants industry
Industry Median: 45.685 vs ROCO:2760: 14.32

Chu Yu Hsiang Co had a gross margin of -11.02% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Chu Yu Hsiang Co was -13.70% per year.


Chu Yu Hsiang Co  (ROCO:2760) 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

Chu Yu Hsiang Co had a gross margin of -11.02% 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.


Chu Yu Hsiang Co Gross Margin % Related Terms


Chu Yu Hsiang Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Chu Yu Hsiang Co'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.

Chu Yu Hsiang Co Gross Margin % Chart

Chu Yu Hsiang Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial 45.12 51.40 60.43 61.25 14.31

Chu Yu Hsiang Co Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 61.78 60.12 62.59 36.83 -11.02

ROCO:2760 vs MCD, SBUX, YUM: Gross Margin % Comparison

For the Restaurants subindustry, Chu Yu Hsiang 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.


Chu Yu Hsiang Co Gross Margin % vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Chu Yu Hsiang Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Chu Yu Hsiang Co's Gross Margin % falls into.


ROCO:2760
40GF Score
Chu Yu Hsiang Co Ltd ROCO:2760
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Chu Yu Hsiang Co Gross Margin % Calculation

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

Chu Yu Hsiang Co's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=34.4 / 240.196
=(Revenue - Cost of Goods Sold) / Revenue
=(240.196 - 205.812) / 240.196
=14.31 %

Chu Yu Hsiang Co's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=-12.5 / 113.017
=(Revenue - Cost of Goods Sold) / Revenue
=(113.017 - 125.468) / 113.017
=-11.02 %

* 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 -11.02% mean?
Chu Yu Hsiang Co (ROCO:2760) has a Gross Margin % of -11.02% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chu Yu Hsiang Co and its competitors. Over the past decade, Chu Yu Hsiang Co's Gross Margin % has ranged from 14.31 to 61.25. According to the industry distribution chart, Chu Yu Hsiang Co ranks #322 out of 354 companies in the Restaurants industry, placing it in the top 91%.
Is Chu Yu Hsiang Co's Gross Margin % too high?
Chu Yu Hsiang Co's current Gross Margin % is -11.02%. Over the past 10 years, this metric has ranged from a low of 14.31 to a high of 61.25. Based on the distribution chart, Chu Yu Hsiang Co ranks #322 out of 354 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Chu Yu Hsiang Co has a GF Score™ of 40/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chu Yu Hsiang Co's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Chu Yu Hsiang Co ranks #322 out of 354 companies for Gross Margin %. This places Chu Yu Hsiang Co in the lower half of its industry. The industry median Gross Margin % is 45.69. Historically, Chu Yu Hsiang Co's own Gross Margin % has ranged from 14.31 to 61.25 over the past decade. 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 Restaurants company?
The median Gross Margin % among Restaurants companies is 45.69, based on 354 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. 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 Chu Yu Hsiang Co and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chu Yu Hsiang Co's current Gross Margin % is -11.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chu Yu Hsiang Co stock overvalued right now?
Based on GuruFocus' analysis, Chu Yu Hsiang Co (ROCO:2760) is currently considered Possible Value Trap. The stock's GF Value™ is NT$65.69, compared to a current price of NT$12.40 — trading 81.1% below its estimated fair value. The current Gross Margin % is -11.02%. Chu Yu Hsiang Co's overall GF Score™ is 40/100 with 8 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 Chu Yu Hsiang Co (ROCO:2760), the current Gross Margin % is -11.02% 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 Chu Yu Hsiang Co (ROCO:2760) Overvalued in 2026?

Based on GuruFocus' analysis, Chu Yu Hsiang Co stock appears to be undervalued. The current stock price of NT$12.40 is trading 81.1% below its estimated GF Value™ of NT$65.69. GuruFocus considers Chu Yu Hsiang Co to be Possible Value Trap.

Key valuation signals for ROCO:2760:

  • Gross Margin %: -11.02%
  • GF Value™: NT$65.69 vs. price of NT$12.40 (81.1% below fair value)
  • GF Score™: 40/100 with 8 warning signs

No single metric tells the full story. See the ROCO:2760 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chu Yu Hsiang Co Business Description

Address No. 88, Sec. 1, Huizhong Road, 21st Floor-2,, Xitun District, Taichung, TWN, 407555
Chu Yu Hsiang Co Ltd operates a chain of cafe under the Ding Tea brand and sales of related products. The company's product portfolio includes flavored milk, flavored tea, fresh tea, classical flavored tea, yogurt, coffee and chocolate creamy mixture, and creamy milk.
40GF Score

Get the complete analysis for ROCO:2760

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$12.40
Price
NT$65.69
GF Value