Hubei Chutian Smart Communication Co (SHSE:600035) 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
Hubei Chutian Smart Communication Co had a gross margin of 35.82% for the quarter that ended in Mar. 2026 => 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.
Hubei Chutian Smart Communication Co Gross Margin % Related Terms
Hubei Chutian Smart Communication 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.
Hubei Chutian Smart Communication Co Gross Margin % Chart
Hubei Chutian Smart Communication Co Gross Margin % Competitor Comparison
For the Infrastructure Operations subindustry, Hubei Chutian Smart Communication 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.
Hubei Chutian Smart Communication Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Hubei Chutian Smart Communication Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hubei Chutian Smart Communication 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.
Hubei Chutian Smart Communication Co (SHSE:600035) has a Gross Margin % of 35.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hubei Chutian Smart Communication Co and its competitors. This is 16% below median its historical median of 42.64. Over the past decade, Hubei Chutian Smart Communication Co's Gross Margin % has ranged from 17.93 to 65.04. According to the industry distribution chart, Hubei Chutian Smart Communication Co ranks #977 out of 1718 companies in the Construction industry, placing it in the top 56.9%.
Is Hubei Chutian Smart Communication Co's Gross Margin % too high?
Hubei Chutian Smart Communication Co's current Gross Margin % of 35.82% is 16% below median its 10-year median of 42.64. Over the past 10 years, this metric has ranged from a low of 17.93 to a high of 65.04. The Construction industry median Gross Margin % is 20.75. Hubei Chutian Smart Communication Co's value of 35.82% is 72.6% above this industry median. Based on the distribution chart, Hubei Chutian Smart Communication Co ranks #977 out of 1718 companies in the Construction industry, which is below the industry midpoint. Overall, Hubei Chutian Smart Communication Co has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hubei Chutian Smart Communication Co's Gross Margin % compare to competitors?
According to the Construction industry distribution chart, Hubei Chutian Smart Communication Co ranks #977 out of 1718 companies for Gross Margin %. This places Hubei Chutian Smart Communication Co in the lower half of its industry. The industry median Gross Margin % is 20.75. Hubei Chutian Smart Communication Co's value of 35.82% is 72.6% above this benchmark. Historically, Hubei Chutian Smart Communication Co's own Gross Margin % has ranged from 17.93 to 65.04 over the past decade. While the company's 10-year median is 42.64 vs. the industry median of 20.75, Hubei Chutian Smart Communication 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 Construction company?
The median Gross Margin % among Construction companies is 20.75, based on 1,718 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. Hubei Chutian Smart Communication Co's current Gross Margin % of 35.82% is 72.6% 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 Hubei Chutian Smart Communication Co and its competitors. For the Construction industry, the median Gross Margin % is 20.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hubei Chutian Smart Communication Co's current Gross Margin % is 35.82%, which is 16% below median its own 10-year median of 42.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hubei Chutian Smart Communication Co stock overvalued right now?
Based on GuruFocus' analysis, Hubei Chutian Smart Communication Co (SHSE:600035) is currently considered Possible Value Trap. The stock's GF Value™ is ¥8.08, compared to a current price of ¥3.47 — trading 57.1% below its estimated fair value. The current Gross Margin % is 35.82%, which is 16% below median its 10-year median of 42.64 and 72.6% above the Construction industry median of 20.75. Hubei Chutian Smart Communication Co's overall GF Score™ is 69/100 with 6 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 Hubei Chutian Smart Communication Co (SHSE:600035), the current Gross Margin % is 35.82% 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.
Is Hubei Chutian Smart Communication Co (SHSE:600035) Overvalued in 2026?
Based on GuruFocus' analysis, Hubei Chutian Smart Communication Co stock appears to be undervalued.
The current stock price of ¥3.47 is trading 57.1% below its estimated GF Value™ of ¥8.08.
GuruFocus considers Hubei Chutian Smart Communication Co to be Possible Value Trap.
Key valuation signals for SHSE:600035:
Gross Margin %: 35.82% (16% below median its 10-year median of 42.64)
GF Value™: ¥8.08 vs. price of ¥3.47 (57.1% below fair value)
Industry Position: 72.6% above the Construction median (#977 of 1718)
No single metric tells the full story. See the SHSE:600035 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hubei Chutian Smart Communication Co Business Description
Hubei Chutian Smart Communication Co Ltd is a China-based company engaged in the investment, construction, and management of roads, bridges and other transportation infrastructures. The company operates and manages one expressway connecting Wuhan and Yichang, as well as one expressway from Dawu to Suizhou. It operates its businesses mainly in Hubei province, China.
69GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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