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.
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.
Shanghai Construction Group Co (SHSE:600170) 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
Shanghai Construction Group Co had a gross margin of 7.96% 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.
Shanghai Construction Group Co Gross Margin % Related Terms
Shanghai Construction Group 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.
Shanghai Construction Group Co Gross Margin % Chart
SHSE:600170 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Shanghai Construction Group 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.
Shanghai Construction Group Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Shanghai Construction Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Construction Group 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.
Shanghai Construction Group Co (SHSE:600170) has a Gross Margin % of 7.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Construction Group Co and its competitors. This is 20% below median its historical median of 9.95. Over the past decade, Shanghai Construction Group Co's Gross Margin % has ranged from 8.74 to 11.25. According to the industry distribution chart, Shanghai Construction Group Co ranks #1377 out of 1722 companies in the Construction industry, placing it in the top 80%.
Is Shanghai Construction Group Co's Gross Margin % too high?
Shanghai Construction Group Co's current Gross Margin % of 7.96% is 20% below median its 10-year median of 9.95. Over the past 10 years, this metric has ranged from a low of 8.74 to a high of 11.25. The Construction industry median Gross Margin % is 20.70. Shanghai Construction Group Co's value of 7.96% is 61.5% below this industry median. Based on the distribution chart, Shanghai Construction Group Co ranks #1377 out of 1722 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Shanghai Construction Group Co has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Construction Group Co's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Shanghai Construction Group Co ranks #1377 out of 1722 companies for Gross Margin %. This places Shanghai Construction Group Co in the lower half of its industry. The industry median Gross Margin % is 20.70. Shanghai Construction Group Co's value of 7.96% is 61.5% below this benchmark. Historically, Shanghai Construction Group Co's own Gross Margin % has ranged from 8.74 to 11.25 over the past decade. While the company's 10-year median is 9.95 vs. the industry median of 20.70, Shanghai Construction Group Co 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 Construction company?
The median Gross Margin % among Construction companies is 20.70, based on 1,722 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. Shanghai Construction Group Co's current Gross Margin % of 7.96% is 61.5% 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 Shanghai Construction Group Co and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Construction Group Co's current Gross Margin % is 7.96%, which is 20% below median its own 10-year median of 9.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Construction Group Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Construction Group Co (SHSE:600170) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥1.82, compared to a current price of ¥2.28 — trading 25.3% above its estimated fair value. The current Gross Margin % is 7.96%, which is 20% below median its 10-year median of 9.95 and 61.5% below the Construction industry median of 20.70. Shanghai Construction Group Co's overall GF Score™ is 67/100 with 5 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 Shanghai Construction Group Co (SHSE:600170), the current Gross Margin % is 7.96% 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 Shanghai Construction Group Co (SHSE:600170) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Construction Group Co stock appears to be overvalued.
The current stock price of ¥2.28 is trading 25.3% above its estimated GF Value™ of ¥1.82.
GuruFocus considers Shanghai Construction Group Co to be Modestly Overvalued.
Key valuation signals for SHSE:600170:
Gross Margin %: 7.96% (20% below median its 10-year median of 9.95)
GF Value™: ¥1.82 vs. price of ¥2.28 (25.3% above fair value)
Industry Position: 61.5% below the Construction median (#1377 of 1722)
No single metric tells the full story. See the SHSE:600170 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Construction Group Co Business Description
Shanghai Construction Group Co Ltd is a China-based company engaged in the construction business, with real estate development and urban construction investment business. It engages in contracting, design, construction, consulting and production, operation, and sale of supporting equipment, materials, and components for all types of construction projects at home and abroad.
67GF Score
Get the complete analysis for SHSE:600170
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:600170 has been successfully added to your 
