Langfang Development CoSHSE:600149 -4.53%66 Gross Margin % is 38.28% as of Mar. 2026, which is 72% above its 10-year median of 22.24. GuruFocus rates SHSE:600149 with a GF Score™ of 66/100 and a GF Value™ of ¥3.88 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,457 Hardware companies, Langfang Development Co ranks better than 73.38% on this metric.
SHSE:600149's Gross Margin % is ranked better than 73.38% of 2457
companies
in the Hardware industry
Industry Median: 24.54
vs SHSE:600149: 37.51
Langfang Development Co had a gross margin of 38.28% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Langfang Development Co was 6.10% per year.
Langfang Development Co (SHSE:600149) 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
Langfang Development Co had a gross margin of 38.28% 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.
Langfang Development Co Gross Margin % Related Terms
Langfang Development 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.
SHSE:600149 vs SNX, ARW, AVT: Gross Margin % Comparison
For the Electronics & Computer Distribution subindustry, Langfang Development 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.
Langfang Development Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Langfang Development Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Langfang Development 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.
Langfang Development Co (SHSE:600149) has a Gross Margin % of 38.28% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Langfang Development Co and its competitors. This is 72% above median its historical median of 22.24. Over the past decade, Langfang Development Co's Gross Margin % has ranged from 0.94 to 39.58. According to the industry distribution chart, Langfang Development Co ranks #654 out of 2457 companies in the Hardware industry, placing it in the top 26.6%.
Is Langfang Development Co's Gross Margin % too high?
Langfang Development Co's current Gross Margin % of 38.28% is 72% above median its 10-year median of 22.24. Over the past 10 years, this metric has ranged from a low of 0.94 to a high of 39.58. The Hardware industry median Gross Margin % is 24.54. Langfang Development Co's value of 38.28% is 56% above this industry median. Based on the distribution chart, Langfang Development Co ranks #654 out of 2457 companies in the Hardware industry, which is above the industry midpoint. Overall, Langfang Development Co has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Langfang Development Co's Gross Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Langfang Development Co ranks #654 out of 2457 companies for Gross Margin %. This puts Langfang Development Co in the upper half of its industry. The industry median Gross Margin % is 24.54. Langfang Development Co's value of 38.28% is 56% above this benchmark. Historically, Langfang Development Co's own Gross Margin % has ranged from 0.94 to 39.58 over the past decade. While the company's 10-year median is 22.24 vs. the industry median of 24.54, Langfang Development 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 24.54, based on 2,457 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. Langfang Development Co's current Gross Margin % of 38.28% is 56% 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 Langfang Development Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Langfang Development Co's current Gross Margin % is 38.28%, which is 72% above median its own 10-year median of 22.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Langfang Development Co stock overvalued right now?
Based on GuruFocus' analysis, Langfang Development Co (SHSE:600149) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥3.88, compared to a current price of ¥4.43 — trading 14.2% above its estimated fair value. The current Gross Margin % is 38.28%, which is 72% above median its 10-year median of 22.24 and 56% above the Hardware industry median of 24.54. Langfang Development Co's overall GF Score™ is 66/100 with 2 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 Langfang Development Co (SHSE:600149), the current Gross Margin % is 38.28% 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 Langfang Development Co (SHSE:600149) Overvalued in 2026?
Based on GuruFocus' analysis, Langfang Development Co stock appears to be overvalued.
The current stock price of ¥4.43 is trading 14.2% above its estimated GF Value™ of ¥3.88.
GuruFocus considers Langfang Development Co to be Modestly Overvalued.
Key valuation signals for SHSE:600149:
Gross Margin %: 38.28% (72% above median its 10-year median of 22.24)
GF Value™: ¥3.88 vs. price of ¥4.43 (14.2% above fair value)
Industry Position: 56% above the Hardware median (#654 of 2457)
No single metric tells the full story. See the SHSE:600149 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Langfang Development Co Ltd is a China-based company primarily engaged in distribution of electronic products and the provision of network technology services.
66GF Score
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