SHSE:600316's Gross Margin % is ranked worse than 94.44% of 342
companies
in the Aerospace & Defense industry
Industry Median: 26.65
vs SHSE:600316: 2.81
Jiangxi Hongdu Aviation Industry Co had a gross margin of 2.23% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Jiangxi Hongdu Aviation Industry Co (SHSE:600316) 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
Jiangxi Hongdu Aviation Industry Co had a gross margin of 2.23% 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.
Jiangxi Hongdu Aviation Industry Co Gross Margin % Related Terms
Jiangxi Hongdu Aviation Industry 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.
Jiangxi Hongdu Aviation Industry Co Gross Margin % Chart
SHSE:600316 vs SPCX, GE, RTX: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Jiangxi Hongdu Aviation Industry 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.
Jiangxi Hongdu Aviation Industry Co Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Jiangxi Hongdu Aviation Industry Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Jiangxi Hongdu Aviation Industry 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.
Jiangxi Hongdu Aviation Industry Co (SHSE:600316) has a Gross Margin % of 2.23% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Jiangxi Hongdu Aviation Industry Co and its competitors. This is 37% below median its historical median of 3.54. Over the past decade, Jiangxi Hongdu Aviation Industry Co's Gross Margin % has ranged from 2.69 to 7.72. According to the industry distribution chart, Jiangxi Hongdu Aviation Industry Co ranks #323 out of 342 companies in the Aerospace & Defense industry, placing it in the top 94.4%.
Is Jiangxi Hongdu Aviation Industry Co's Gross Margin % too high?
Jiangxi Hongdu Aviation Industry Co's current Gross Margin % of 2.23% is 37% below median its 10-year median of 3.54. Over the past 10 years, this metric has ranged from a low of 2.69 to a high of 7.72. The Aerospace & Defense industry median Gross Margin % is 26.65. Jiangxi Hongdu Aviation Industry Co's value of 2.23% is 91.6% below this industry median. Based on the distribution chart, Jiangxi Hongdu Aviation Industry Co ranks #323 out of 342 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Jiangxi Hongdu Aviation Industry Co has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Jiangxi Hongdu Aviation Industry Co's Gross Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Jiangxi Hongdu Aviation Industry Co ranks #323 out of 342 companies for Gross Margin %. This places Jiangxi Hongdu Aviation Industry Co in the lower half of its industry. The industry median Gross Margin % is 26.65. Jiangxi Hongdu Aviation Industry Co's value of 2.23% is 91.6% below this benchmark. Historically, Jiangxi Hongdu Aviation Industry Co's own Gross Margin % has ranged from 2.69 to 7.72 over the past decade. While the company's 10-year median is 3.54 vs. the industry median of 26.65, Jiangxi Hongdu Aviation Industry 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 an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 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. Jiangxi Hongdu Aviation Industry Co's current Gross Margin % of 2.23% is 91.6% 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 Jiangxi Hongdu Aviation Industry Co and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangxi Hongdu Aviation Industry Co's current Gross Margin % is 2.23%, which is 37% below median its own 10-year median of 3.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangxi Hongdu Aviation Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangxi Hongdu Aviation Industry Co (SHSE:600316) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥51.26, compared to a current price of ¥28.10 — trading 45.2% below its estimated fair value. The current Gross Margin % is 2.23%, which is 37% below median its 10-year median of 3.54 and 91.6% below the Aerospace & Defense industry median of 26.65. Jiangxi Hongdu Aviation Industry Co's overall GF Score™ is 62/100 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 Jiangxi Hongdu Aviation Industry Co (SHSE:600316), the current Gross Margin % is 2.23% 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 Jiangxi Hongdu Aviation Industry Co (SHSE:600316) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangxi Hongdu Aviation Industry Co stock appears to be undervalued.
The current stock price of ¥28.10 is trading 45.2% below its estimated GF Value™ of ¥51.26.
GuruFocus considers Jiangxi Hongdu Aviation Industry Co to be Significantly Undervalued.
Key valuation signals for SHSE:600316:
Gross Margin %: 2.23% (37% below median its 10-year median of 3.54)
GF Value™: ¥51.26 vs. price of ¥28.10 (45.2% below fair value)
Industry Position: 91.6% below the Aerospace & Defense median (#323 of 342)
No single metric tells the full story. See the SHSE:600316 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangxi Hongdu Aviation Industry Co Business Description
Jiangxi Hongdu Aviation Industry Co Ltd engages in the manufacture and sale of aviation products, motorcycles, and engines. The company operates through Trainer Business, Subcontract Production Business, and General Aviation Business segments. The main products of the K8 series jet trainer and the first teacher six-propeller trainer are exported to many countries and regions such as Asia, Africa, and the Americas. Further, the group act as the main export base for China's trainer aircraft, agricultural and forestry aircraft research and production bases and aviation foreign trade.
62GF 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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