Hainan Airlines Holding CoSHSE:600221 63 Gross Margin % is 11.87% as of Mar. 2026, which is 60% above its 10-year median of 7.43. GuruFocus rates SHSE:600221 with a GF Score™ of 63/100 and a GF Value™ of ¥1.80 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 978 Transportation companies, Hainan Airlines Holding Co ranks worse than 83.54% on this metric.
Hainan Airlines Holding Co (SHSE:600221) 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
Hainan Airlines Holding Co had a gross margin of 11.87% 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.
Hainan Airlines Holding Co Gross Margin % Related Terms
Hainan Airlines Holding 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:600221 vs DAL, UAL, LUV: Gross Margin % Comparison
For the Airlines subindustry, Hainan Airlines Holding 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.
Hainan Airlines Holding Co Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Hainan Airlines Holding Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hainan Airlines Holding 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.
Hainan Airlines Holding Co (SHSE:600221) has a Gross Margin % of 11.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hainan Airlines Holding Co and its competitors. This is 60% above median its historical median of 7.43. According to the industry distribution chart, Hainan Airlines Holding Co ranks #817 out of 978 companies in the Transportation industry, placing it in the top 83.5%.
Is Hainan Airlines Holding Co's Gross Margin % too high?
Hainan Airlines Holding Co's current Gross Margin % of 11.87% is 60% above median its 10-year median of 7.43. The Transportation industry median Gross Margin % is 20.50. Hainan Airlines Holding Co's value of 11.87% is 42.1% below this industry median. Based on the distribution chart, Hainan Airlines Holding Co ranks #817 out of 978 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Hainan Airlines Holding Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hainan Airlines Holding Co's Gross Margin % compare to DAL and UAL?
According to the Transportation industry distribution chart, Hainan Airlines Holding Co ranks #817 out of 978 companies for Gross Margin %. This places Hainan Airlines Holding Co in the lower half of its industry. The industry median Gross Margin % is 20.50. Hainan Airlines Holding Co's value of 11.87% is 42.1% below this benchmark. While the company's 10-year median is 7.43 vs. the industry median of 20.50, Hainan Airlines Holding 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.50, based on 978 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. Hainan Airlines Holding Co's current Gross Margin % of 11.87% is 42.1% 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 Hainan Airlines Holding Co and its competitors. For the Transportation industry, the median Gross Margin % is 20.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hainan Airlines Holding Co's current Gross Margin % is 11.87%, which is 60% above median its own 10-year median of 7.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hainan Airlines Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Hainan Airlines Holding Co (SHSE:600221) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥1.80, compared to a current price of ¥1.37 — trading 23.9% below its estimated fair value. The current Gross Margin % is 11.87%, which is 60% above median its 10-year median of 7.43 and 42.1% below the Transportation industry median of 20.50. Hainan Airlines Holding Co's overall GF Score™ is 63/100 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 Hainan Airlines Holding Co (SHSE:600221), the current Gross Margin % is 11.87% 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 Hainan Airlines Holding Co (SHSE:600221) Overvalued in 2026?
Based on GuruFocus' analysis, Hainan Airlines Holding Co stock appears to be undervalued.
The current stock price of ¥1.37 is trading 23.9% below its estimated GF Value™ of ¥1.80.
GuruFocus considers Hainan Airlines Holding Co to be Modestly Undervalued.
Key valuation signals for SHSE:600221:
Gross Margin %: 11.87% (60% above median its 10-year median of 7.43)
GF Value™: ¥1.80 vs. price of ¥1.37 (23.9% below fair value)
Industry Position: 42.1% below the Transportation median (#817 of 978)
No single metric tells the full story. See the SHSE:600221 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hainan Airlines Holding Co Ltd is an airline company. The company is engaged in operating approved domestic air passenger and cargo transportation business, as well as business charter flight business to neighboring countries and regions. It is also engaged in the production of in-flight supplies, aviation equipment, aviation ground equipment and spare parts, terminal services and operations, and provides insurance agency services.
63GF 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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