Sichuan Hongda Co (SHSE:600331) Gross Margin %: 1.00% (As of Mar. 2026) — 89% Below Median

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SHSE:600331 Sichuan Hongda Co Ltd SHSE:600331
58 GF Score
Price ¥11.11
GF Value ¥6.85
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Sichuan Hongda Co Gross Margin %?

Sichuan Hongda Co SHSE:600331 +4.12% 58 Gross Margin % is 1.00% as of Mar. 2026, which is 89% below its 10-year median of 8.99. GuruFocus rates SHSE:600331 with a GF Score™ of 58/100 and a GF Value™ of ¥6.85 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 732 Metals & Mining companies, Sichuan Hongda Co ranks worse than 86.34% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Sichuan Hongda Co's Gross Profit for the three months ended in Mar. 2026 was ¥7 Mil. Sichuan Hongda Co's Revenue for the three months ended in Mar. 2026 was ¥735 Mil. Therefore, Sichuan Hongda Co's Gross Margin % for the quarter that ended in Mar. 2026 was 1.00%.

Warning Sign:

Sichuan Hongda Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -13.9%.


The historical rank and industry rank for Sichuan Hongda Co's Gross Margin % or its related term are showing as below:

SHSE:600331' s Gross Margin % Range Over the Past 10 Years
Min: -0.74   Med: 8.99   Max: 24.9
Current: 3.95


During the past 13 years, the highest Gross Margin % of Sichuan Hongda Co was 24.90%. The lowest was -0.74%. And the median was 8.99%.

SHSE:600331's Gross Margin % is ranked worse than
86.34% of 732 companies
in the Metals & Mining industry
Industry Median: 26.175 vs SHSE:600331: 3.95

Sichuan Hongda Co had a gross margin of 1.00% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sichuan Hongda Co was -13.90% per year.


Sichuan Hongda Co  (SHSE:600331) 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

Sichuan Hongda Co had a gross margin of 1.00% 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.


Sichuan Hongda Co Gross Margin % Related Terms


Sichuan Hongda Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Sichuan Hongda Co's Gross Margin % can be seen below:

* 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.

Sichuan Hongda Co Gross Margin % Chart

Sichuan Hongda Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.64 10.07 6.24 8.27 4.01

Sichuan Hongda Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.58 2.56 7.40 4.00 1.00

Sichuan Hongda Co Gross Margin % Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Sichuan Hongda 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.


Sichuan Hongda Co Gross Margin % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Sichuan Hongda Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sichuan Hongda Co's Gross Margin % falls into.


SHSE:600331
58GF Score
Sichuan Hongda Co Ltd SHSE:600331
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sichuan Hongda Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Sichuan Hongda Co's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=151.9 / 3792.896
=(Revenue - Cost of Goods Sold) / Revenue
=(3792.896 - 3640.965) / 3792.896
=4.01 %

Sichuan Hongda Co's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=7.3 / 734.754
=(Revenue - Cost of Goods Sold) / Revenue
=(734.754 - 727.408) / 734.754
=1.00 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 1.00% mean?
Sichuan Hongda Co (SHSE:600331) has a Gross Margin % of 1.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sichuan Hongda Co and its competitors. This is 89% below median its historical median of 8.99. According to the industry distribution chart, Sichuan Hongda Co ranks #632 out of 732 companies in the Metals & Mining industry, placing it in the top 86.3%.
Is Sichuan Hongda Co's Gross Margin % too high?
Sichuan Hongda Co's current Gross Margin % of 1.00% is 89% below median its 10-year median of 8.99. The Metals & Mining industry median Gross Margin % is 26.18. Sichuan Hongda Co's value of 1.00% is 96.2% below this industry median. Based on the distribution chart, Sichuan Hongda Co ranks #632 out of 732 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Sichuan Hongda Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sichuan Hongda Co's Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Sichuan Hongda Co ranks #632 out of 732 companies for Gross Margin %. This places Sichuan Hongda Co in the lower half of its industry. The industry median Gross Margin % is 26.18. Sichuan Hongda Co's value of 1.00% is 96.2% below this benchmark. While the company's 10-year median is 8.99 vs. the industry median of 26.18, Sichuan Hongda 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.18, based on 732 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. Sichuan Hongda Co's current Gross Margin % of 1.00% is 96.2% 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 Sichuan Hongda Co and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sichuan Hongda Co's current Gross Margin % is 1.00%, which is 89% below median its own 10-year median of 8.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sichuan Hongda Co stock overvalued right now?
Based on GuruFocus' analysis, Sichuan Hongda Co (SHSE:600331) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥6.85, compared to a current price of ¥11.11 — trading 62.2% above its estimated fair value. The current Gross Margin % is 1.00%, which is 89% below median its 10-year median of 8.99 and 96.2% below the Metals & Mining industry median of 26.18. Sichuan Hongda Co's overall GF Score™ is 58/100 with 4 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 Sichuan Hongda Co (SHSE:600331), the current Gross Margin % is 1.00% 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 Sichuan Hongda Co (SHSE:600331) Overvalued in 2026?

Based on GuruFocus' analysis, Sichuan Hongda Co stock appears to be overvalued. The current stock price of ¥11.11 is trading 62.2% above its estimated GF Value™ of ¥6.85. GuruFocus considers Sichuan Hongda Co to be Significantly Overvalued.

Key valuation signals for SHSE:600331:

  • Gross Margin %: 1.00% (89% below median its 10-year median of 8.99)
  • GF Value™: ¥6.85 vs. price of ¥11.11 (62.2% above fair value)
  • GF Score™: 58/100 with 4 warning signs
  • Industry Position: 96.2% below the Metals & Mining median (#632 of 732)

No single metric tells the full story. See the SHSE:600331 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sichuan Hongda Co Business Description

Address No. 499 Jiazi Avenue, 14th Floor, Block H, Zhonghai International Center, High-tech Zone, Sichuan Province, Chengdu, CHN, 610095
Sichuan Hongda Co Ltd is engaged in the Mining, beneficiation and smelting of zinc, a non-ferrous metal.
58GF Score

Get the complete analysis for SHSE:600331

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥11.11
Price
¥6.85
GF Value