Gross Margin % is calculated as gross profit divided by its revenue. Tongwei Co's Gross Profit for the
three
months ended in Mar. 2026 was ¥-488 Mil. Tongwei Co's Revenue for the
three
months ended in Mar. 2026 was ¥12,125 Mil. Therefore, Tongwei Co's Gross Margin % for the quarter that ended in Mar. 2026 was -4.03%.
Warning Sign:
Tongwei Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -32.5%.
The historical rank and industry rank for Tongwei Co's Gross Margin % or its related term are showing as below:
SHSE:600438'
s Gross Margin % Range Over the Past 10 Years
Min: 2.7 Med: 18.8 Max: 38.17
Current: 2.79
During the past 13 years, the highestGross Margin % of Tongwei Co was 38.17%. The lowest was 2.70%. And the median was 18.80%.
SHSE:600438's Gross Margin % is ranked worse than 92.67% of 1009
companies
in the Semiconductors industry
Industry Median: 29.61
vs SHSE:600438: 2.79
Tongwei Co had a gross margin of -4.03% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tongwei Co was -32.50% per year.
Tongwei Co (SHSE:600438) 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
Tongwei Co had a gross margin of -4.03% 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.
Tongwei Co Gross Margin % Related Terms
Tongwei Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tongwei 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.
SHSE:600438 vs FSLR, NXT, ENPH: Gross Margin % Comparison
For the Solar subindustry, Tongwei 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.
Tongwei Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Tongwei Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tongwei 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.
Tongwei Co (SHSE:600438) has a Gross Margin % of -4.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tongwei Co and its competitors. Over the past decade, Tongwei Co's Gross Margin % has ranged from 2.70 to 38.17. According to the industry distribution chart, Tongwei Co ranks #935 out of 1009 companies in the Semiconductors industry, placing it in the top 92.7%.
Is Tongwei Co's Gross Margin % too high?
Tongwei Co's current Gross Margin % is -4.03%. Over the past 10 years, this metric has ranged from a low of 2.70 to a high of 38.17. Based on the distribution chart, Tongwei Co ranks #935 out of 1009 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Tongwei Co has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tongwei Co's Gross Margin % compare to FSLR and NXT?
According to the Semiconductors industry distribution chart, Tongwei Co ranks #935 out of 1009 companies for Gross Margin %. This places Tongwei Co in the lower half of its industry. The industry median Gross Margin % is 29.61. Historically, Tongwei Co's own Gross Margin % has ranged from 2.70 to 38.17 over the past decade. 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 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. 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 Tongwei Co and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongwei Co's current Gross Margin % is -4.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongwei Co stock overvalued right now?
Based on GuruFocus' analysis, Tongwei Co (SHSE:600438) is currently considered Possible Value Trap. The stock's GF Value™ is ¥18.31, compared to a current price of ¥11.80 — trading 35.6% below its estimated fair value. The current Gross Margin % is -4.03%. Tongwei Co's overall GF Score™ is 57/100 with 8 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 Tongwei Co (SHSE:600438), the current Gross Margin % is -4.03% 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 Tongwei Co (SHSE:600438) Overvalued in 2026?
Based on GuruFocus' analysis, Tongwei Co stock appears to be undervalued.
The current stock price of ¥11.80 is trading 35.6% below its estimated GF Value™ of ¥18.31.
GuruFocus considers Tongwei Co to be Possible Value Trap.
Key valuation signals for SHSE:600438:
Gross Margin %: -4.03%
GF Value™: ¥18.31 vs. price of ¥11.80 (35.6% below fair value)
No single metric tells the full story. See the SHSE:600438 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongwei is the world's largest polysilicon producer and a leading solar cell and module supplier. The solar business contributed more than 60% of revenue in 2025. In addition, Tongwei runs a feed and food business, which made up 35% of revenue in 2025.
57GF Score
Get the complete analysis for SHSE:600438
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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