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Huafang CoSHSE:600448 +0.76%51 Gross Margin % is 6.62% as of Mar. 2026, which is 37% below its 10-year median of 10.53. GuruFocus rates SHSE:600448 with a GF Score™ of 51/100 and a GF Value™ of ¥2.73 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,024 Manufacturing - Apparel & Accessories companies, Huafang Co ranks worse than 86.23% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Huafang Co's Gross Profit for the
three
months ended in Mar. 2026 was ¥50 Mil. Huafang Co's Revenue for the
three
months ended in Mar. 2026 was ¥755 Mil. Therefore, Huafang Co's Gross Margin % for the quarter that ended in Mar. 2026 was 6.62%.
The historical rank and industry rank for Huafang Co's Gross Margin % or its related term are showing as below:
SHSE:600448'
s Gross Margin % Range Over the Past 10 Years
Min: 7.5 Med: 10.53 Max: 14.56
Current: 9.02
During the past 13 years, the highestGross Margin % of Huafang Co was 14.56%. The lowest was 7.50%. And the median was 10.53%.
SHSE:600448's Gross Margin % is ranked worse than 86.23% of 1024
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.435
vs SHSE:600448: 9.02
Huafang Co had a gross margin of 6.62% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Huafang Co was -0.50% per year.
Huafang Co (SHSE:600448) 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
Huafang Co had a gross margin of 6.62% 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.
Huafang Co Gross Margin % Related Terms
Huafang Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Huafang 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.
For the Textile Manufacturing subindustry, Huafang 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.
Huafang Co Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Huafang Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Huafang 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.
Huafang Co (SHSE:600448) has a Gross Margin % of 6.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Huafang Co and its competitors. This is 37% below median its historical median of 10.53. Over the past decade, Huafang Co's Gross Margin % has ranged from 7.50 to 14.56. According to the industry distribution chart, Huafang Co ranks #883 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 86.2%.
Is Huafang Co's Gross Margin % too high?
Huafang Co's current Gross Margin % of 6.62% is 37% below median its 10-year median of 10.53. Over the past 10 years, this metric has ranged from a low of 7.50 to a high of 14.56. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.44. Huafang Co's value of 6.62% is 76.7% below this industry median. Based on the distribution chart, Huafang Co ranks #883 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Huafang Co has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Huafang Co's Gross Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Huafang Co ranks #883 out of 1024 companies for Gross Margin %. This places Huafang Co in the lower half of its industry. The industry median Gross Margin % is 28.44. Huafang Co's value of 6.62% is 76.7% below this benchmark. Historically, Huafang Co's own Gross Margin % has ranged from 7.50 to 14.56 over the past decade. While the company's 10-year median is 10.53 vs. the industry median of 28.44, Huafang 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.44, based on 1,024 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. Huafang Co's current Gross Margin % of 6.62% is 76.7% 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 Huafang Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huafang Co's current Gross Margin % is 6.62%, which is 37% below median its own 10-year median of 10.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huafang Co stock overvalued right now?
Based on GuruFocus' analysis, Huafang Co (SHSE:600448) is currently considered Fairly Valued. The stock's GF Value™ is ¥2.73, compared to a current price of ¥2.64 — trading 3.3% below its estimated fair value. The current Gross Margin % is 6.62%, which is 37% below median its 10-year median of 10.53 and 76.7% below the Manufacturing - Apparel & Accessories industry median of 28.44. Huafang Co's overall GF Score™ is 51/100 with 7 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 Huafang Co (SHSE:600448), the current Gross Margin % is 6.62% 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 Huafang Co (SHSE:600448) Overvalued in 2026?
Based on GuruFocus' analysis, Huafang Co stock appears to be undervalued.
The current stock price of ¥2.64 is trading 3.3% below its estimated GF Value™ of ¥2.73.
GuruFocus considers Huafang Co to be Fairly Valued.
Key valuation signals for SHSE:600448:
Gross Margin %: 6.62% (37% below median its 10-year median of 10.53)
GF Value™: ¥2.73 vs. price of ¥2.64 (3.3% below fair value)
Industry Position: 76.7% below the Manufacturing - Apparel & Accessories median (#883 of 1024)
No single metric tells the full story. See the SHSE:600448 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huafang Co Ltd is engaged in the production, distribution and export of fabrics, printed fabrics, textile fabrics, bedding, and dresses. The company provides textile products, fabric series, cloth series, bedding series, clothing line & among others.
51GF Score
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