Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Haohua Chemical Science & Technology (SHSE:600378) 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
Haohua Chemical Science & Technology had a gross margin of 23.97% 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.
Haohua Chemical Science & Technology Gross Margin % Related Terms
Haohua Chemical Science & Technology 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.
Haohua Chemical Science & Technology Gross Margin % Chart
For the Chemicals subindustry, Haohua Chemical Science & Technology'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.
Haohua Chemical Science & Technology Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Haohua Chemical Science & Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Haohua Chemical Science & Technology'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.
Haohua Chemical Science & Technology (SHSE:600378) has a Gross Margin % of 23.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Haohua Chemical Science & Technology and its competitors. This is 13% below median its historical median of 27.45. Over the past decade, Haohua Chemical Science & Technology's Gross Margin % has ranged from 21.73 to 31.35. According to the industry distribution chart, Haohua Chemical Science & Technology ranks #711 out of 1559 companies in the Chemicals industry, placing it in the top 45.6%.
Is Haohua Chemical Science & Technology's Gross Margin % too high?
Haohua Chemical Science & Technology's current Gross Margin % of 23.97% is 13% below median its 10-year median of 27.45. Over the past 10 years, this metric has ranged from a low of 21.73 to a high of 31.35. The Chemicals industry median Gross Margin % is 23.52. Haohua Chemical Science & Technology's value of 23.97% is 1.9% above this industry median. Based on the distribution chart, Haohua Chemical Science & Technology ranks #711 out of 1559 companies in the Chemicals industry, which is above the industry midpoint. Overall, Haohua Chemical Science & Technology has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Haohua Chemical Science & Technology's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Haohua Chemical Science & Technology ranks #711 out of 1559 companies for Gross Margin %. This puts Haohua Chemical Science & Technology in the upper half of its industry. The industry median Gross Margin % is 23.52. Haohua Chemical Science & Technology's value of 23.97% is 1.9% above this benchmark. Historically, Haohua Chemical Science & Technology's own Gross Margin % has ranged from 21.73 to 31.35 over the past decade. While the company's 10-year median is 27.45 vs. the industry median of 23.52, Haohua Chemical Science & Technology has consistently been above 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.52, based on 1,559 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. Haohua Chemical Science & Technology's current Gross Margin % of 23.97% is 1.9% above 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 Haohua Chemical Science & Technology and its competitors. For the Chemicals industry, the median Gross Margin % is 23.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Haohua Chemical Science & Technology's current Gross Margin % is 23.97%, which is 13% below median its own 10-year median of 27.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Haohua Chemical Science & Technology stock overvalued right now?
Based on GuruFocus' analysis, Haohua Chemical Science & Technology (SHSE:600378) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥34.56, compared to a current price of ¥43.70 — trading 26.4% above its estimated fair value. The current Gross Margin % is 23.97%, which is 13% below median its 10-year median of 27.45 and 1.9% above the Chemicals industry median of 23.52. Haohua Chemical Science & Technology's overall GF Score™ is 84/100 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 Haohua Chemical Science & Technology (SHSE:600378), the current Gross Margin % is 23.97% 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 Haohua Chemical Science & Technology (SHSE:600378) Overvalued in 2026?
Based on GuruFocus' analysis, Haohua Chemical Science & Technology stock appears to be overvalued.
The current stock price of ¥43.70 is trading 26.4% above its estimated GF Value™ of ¥34.56.
GuruFocus considers Haohua Chemical Science & Technology to be Modestly Overvalued.
Key valuation signals for SHSE:600378:
Gross Margin %: 23.97% (13% below median its 10-year median of 27.45)
GF Value™: ¥34.56 vs. price of ¥43.70 (26.4% above fair value)
Industry Position: 1.9% above the Chemicals median (#711 of 1559)
No single metric tells the full story. See the SHSE:600378 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Haohua Chemical Science & Technology Business Description
Haohua Chemical Science & Technology Corp Ltd is a China-based company engaged in the manufacturing of chemicals and related products It specializes in catalysts, PSA technology and equipment, research, production and sales of synthetic linalool and industrial gases, chemical engineering design, and engineering contracting.
84GF Score
Get the complete analysis for SHSE:600378
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:600378 has been successfully added to your 
