Anhui Tongfeng Electronics CoSHSE:600237 -6.79%71 Gross Margin % is 23.59% as of Mar. 2026, which is 18% above its 10-year median of 19.96. GuruFocus rates SHSE:600237 with a GF Score™ of 71/100 and a GF Value™ of ¥8.40 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,453 Hardware companies, Anhui Tongfeng Electronics Co ranks better than 55.56% on this metric.
Anhui Tongfeng Electronics Co (SHSE:600237) 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
Anhui Tongfeng Electronics Co had a gross margin of 23.59% 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.
Anhui Tongfeng Electronics Co Gross Margin % Related Terms
Anhui Tongfeng Electronics 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.
Anhui Tongfeng Electronics Co Gross Margin % Chart
SHSE:600237 vs APH, GLW: Gross Margin % Comparison
For the Electronic Components subindustry, Anhui Tongfeng Electronics 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.
Anhui Tongfeng Electronics Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Anhui Tongfeng Electronics Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Anhui Tongfeng Electronics 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.
Anhui Tongfeng Electronics Co (SHSE:600237) has a Gross Margin % of 23.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Anhui Tongfeng Electronics Co and its competitors. This is 18% above median its historical median of 19.96. Over the past decade, Anhui Tongfeng Electronics Co's Gross Margin % has ranged from 5.09 to 27.56. According to the industry distribution chart, Anhui Tongfeng Electronics Co ranks #1090 out of 2453 companies in the Hardware industry, placing it in the top 44.4%.
Is Anhui Tongfeng Electronics Co's Gross Margin % too high?
Anhui Tongfeng Electronics Co's current Gross Margin % of 23.59% is 18% above median its 10-year median of 19.96. Over the past 10 years, this metric has ranged from a low of 5.09 to a high of 27.56. The Hardware industry median Gross Margin % is 24.52. Anhui Tongfeng Electronics Co's value of 23.59% is 3.8% below this industry median. Based on the distribution chart, Anhui Tongfeng Electronics Co ranks #1090 out of 2453 companies in the Hardware industry, which is above the industry midpoint. Overall, Anhui Tongfeng Electronics Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Anhui Tongfeng Electronics Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Anhui Tongfeng Electronics Co ranks #1090 out of 2453 companies for Gross Margin %. This puts Anhui Tongfeng Electronics Co in the upper half of its industry. The industry median Gross Margin % is 24.52. Anhui Tongfeng Electronics Co's value of 23.59% is 3.8% below this benchmark. Historically, Anhui Tongfeng Electronics Co's own Gross Margin % has ranged from 5.09 to 27.56 over the past decade. While the company's 10-year median is 19.96 vs. the industry median of 24.52, Anhui Tongfeng Electronics 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,453 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. Anhui Tongfeng Electronics Co's current Gross Margin % of 23.59% is 3.8% 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 Anhui Tongfeng Electronics Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Anhui Tongfeng Electronics Co's current Gross Margin % is 23.59%, which is 18% above median its own 10-year median of 19.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Anhui Tongfeng Electronics Co stock overvalued right now?
Based on GuruFocus' analysis, Anhui Tongfeng Electronics Co (SHSE:600237) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥8.40, compared to a current price of ¥11.81 — trading 40.6% above its estimated fair value. The current Gross Margin % is 23.59%, which is 18% above median its 10-year median of 19.96 and 3.8% below the Hardware industry median of 24.52. Anhui Tongfeng Electronics Co's overall GF Score™ is 71/100 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 Anhui Tongfeng Electronics Co (SHSE:600237), the current Gross Margin % is 23.59% 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 Anhui Tongfeng Electronics Co (SHSE:600237) Overvalued in 2026?
Based on GuruFocus' analysis, Anhui Tongfeng Electronics Co stock appears to be overvalued.
The current stock price of ¥11.81 is trading 40.6% above its estimated GF Value™ of ¥8.40.
GuruFocus considers Anhui Tongfeng Electronics Co to be Significantly Overvalued.
Key valuation signals for SHSE:600237:
Gross Margin %: 23.59% (18% above median its 10-year median of 19.96)
GF Value™: ¥8.40 vs. price of ¥11.81 (40.6% above fair value)
Industry Position: 3.8% below the Hardware median (#1090 of 2453)
No single metric tells the full story. See the SHSE:600237 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Anhui Tongfeng Electronics Co Business Description
Anhui Tongfeng Electronics Co Ltd is engaged in the development of electronic materials, electronic components and power saving equipment in China. Its products include polypropylene film, AC capacitor, Power electronic capacitor, precision connector and others. The company's products are used across various fields such as home appliances, rail transit, clean energy, power transmission, lighting electronics, electronic circuits, electronic display, modern printing, energy-saving applications, automotive electronics, and ship propulsion.
71GF Score
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