Harbin Dongan Auto Engine CoSHSE:600178 +2.00%45 Gross Margin % is 3.23% as of Mar. 2026, which is 70% below its 10-year median of 10.78. GuruFocus rates SHSE:600178 with a GF Score™ of 45/100 and a GF Value™ of ¥13.57 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Harbin Dongan Auto Engine Co ranks worse than 96.02% on this metric.
Harbin Dongan Auto Engine Co (SHSE:600178) 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
Harbin Dongan Auto Engine Co had a gross margin of 3.23% 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.
Harbin Dongan Auto Engine Co Gross Margin % Related Terms
Harbin Dongan Auto Engine 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:600178 vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Harbin Dongan Auto Engine 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.
Harbin Dongan Auto Engine Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Harbin Dongan Auto Engine Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Harbin Dongan Auto Engine 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.
Harbin Dongan Auto Engine Co (SHSE:600178) has a Gross Margin % of 3.23% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Harbin Dongan Auto Engine Co and its competitors. This is 70% below median its historical median of 10.78. Over the past decade, Harbin Dongan Auto Engine Co's Gross Margin % has ranged from 4.20 to 14.75. According to the industry distribution chart, Harbin Dongan Auto Engine Co ranks #1256 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 96%.
Is Harbin Dongan Auto Engine Co's Gross Margin % too high?
Harbin Dongan Auto Engine Co's current Gross Margin % of 3.23% is 70% below median its 10-year median of 10.78. Over the past 10 years, this metric has ranged from a low of 4.20 to a high of 14.75. The Vehicles & Parts industry median Gross Margin % is 19.80. Harbin Dongan Auto Engine Co's value of 3.23% is 83.7% below this industry median. Based on the distribution chart, Harbin Dongan Auto Engine Co ranks #1256 out of 1308 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Harbin Dongan Auto Engine Co has a GF Score™ of 45/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Harbin Dongan Auto Engine Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Harbin Dongan Auto Engine Co ranks #1256 out of 1308 companies for Gross Margin %. This places Harbin Dongan Auto Engine Co in the lower half of its industry. The industry median Gross Margin % is 19.80. Harbin Dongan Auto Engine Co's value of 3.23% is 83.7% below this benchmark. Historically, Harbin Dongan Auto Engine Co's own Gross Margin % has ranged from 4.20 to 14.75 over the past decade. While the company's 10-year median is 10.78 vs. the industry median of 19.80, Harbin Dongan Auto Engine 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.80, based on 1,308 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. Harbin Dongan Auto Engine Co's current Gross Margin % of 3.23% is 83.7% 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 Harbin Dongan Auto Engine Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harbin Dongan Auto Engine Co's current Gross Margin % is 3.23%, which is 70% below median its own 10-year median of 10.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harbin Dongan Auto Engine Co stock overvalued right now?
Based on GuruFocus' analysis, Harbin Dongan Auto Engine Co (SHSE:600178) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥13.57, compared to a current price of ¥10.22 — trading 24.7% below its estimated fair value. The current Gross Margin % is 3.23%, which is 70% below median its 10-year median of 10.78 and 83.7% below the Vehicles & Parts industry median of 19.80. Harbin Dongan Auto Engine Co's overall GF Score™ is 45/100 with 3 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 Harbin Dongan Auto Engine Co (SHSE:600178), the current Gross Margin % is 3.23% 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 Harbin Dongan Auto Engine Co (SHSE:600178) Overvalued in 2026?
Based on GuruFocus' analysis, Harbin Dongan Auto Engine Co stock appears to be undervalued.
The current stock price of ¥10.22 is trading 24.7% below its estimated GF Value™ of ¥13.57.
GuruFocus considers Harbin Dongan Auto Engine Co to be Modestly Undervalued.
Key valuation signals for SHSE:600178:
Gross Margin %: 3.23% (70% below median its 10-year median of 10.78)
GF Value™: ¥13.57 vs. price of ¥10.22 (24.7% below fair value)
Industry Position: 83.7% below the Vehicles & Parts median (#1256 of 1308)
No single metric tells the full story. See the SHSE:600178 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harbin Dongan Auto Engine Co Ltd is a China-based company is mainly engaged in the production and distribution of mini-car engines, transmissions, parts, and casting products.
45GF Score
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