Wuchan Zhongda Group CoSHSE:600704 +2.09%72 Gross Margin % is 3.36% as of Mar. 2026, which is 26% above its 10-year median of 2.67. GuruFocus rates SHSE:600704 with a GF Score™ of 72/100 and a GF Value™ of ¥5.32 (Fairly Valued). The stock has 7 warning signs investors should review. Among 511 Conglomerates companies, Wuchan Zhongda Group Co ranks worse than 96.48% on this metric.
SHSE:600704's Gross Margin % is ranked worse than 96.48% of 511
companies
in the Conglomerates industry
Industry Median: 25.96
vs SHSE:600704: 2.47
Wuchan Zhongda Group Co had a gross margin of 3.36% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Wuchan Zhongda Group Co was -5.30% per year.
Wuchan Zhongda Group Co (SHSE:600704) 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
Wuchan Zhongda Group Co had a gross margin of 3.36% 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.
Wuchan Zhongda Group Co Gross Margin % Related Terms
Wuchan Zhongda Group 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.
SHSE:600704 vs HON, MMM: Gross Margin % Comparison
For the Conglomerates subindustry, Wuchan Zhongda Group 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.
Wuchan Zhongda Group Co Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Wuchan Zhongda Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wuchan Zhongda Group 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.
Wuchan Zhongda Group Co (SHSE:600704) has a Gross Margin % of 3.36% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Wuchan Zhongda Group Co and its competitors. This is 26% above median its historical median of 2.67. Over the past decade, Wuchan Zhongda Group Co's Gross Margin % has ranged from 2.18 to 3.57. According to the industry distribution chart, Wuchan Zhongda Group Co ranks #493 out of 511 companies in the Conglomerates industry, placing it in the top 96.5%.
Is Wuchan Zhongda Group Co's Gross Margin % too high?
Wuchan Zhongda Group Co's current Gross Margin % of 3.36% is 26% above median its 10-year median of 2.67. Over the past 10 years, this metric has ranged from a low of 2.18 to a high of 3.57. The Conglomerates industry median Gross Margin % is 25.96. Wuchan Zhongda Group Co's value of 3.36% is 87.1% below this industry median. Based on the distribution chart, Wuchan Zhongda Group Co ranks #493 out of 511 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Wuchan Zhongda Group Co has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Wuchan Zhongda Group Co's Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Wuchan Zhongda Group Co ranks #493 out of 511 companies for Gross Margin %. This places Wuchan Zhongda Group Co in the lower half of its industry. The industry median Gross Margin % is 25.96. Wuchan Zhongda Group Co's value of 3.36% is 87.1% below this benchmark. Historically, Wuchan Zhongda Group Co's own Gross Margin % has ranged from 2.18 to 3.57 over the past decade. While the company's 10-year median is 2.67 vs. the industry median of 25.96, Wuchan Zhongda Group 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 511 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. Wuchan Zhongda Group Co's current Gross Margin % of 3.36% is 87.1% 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 Wuchan Zhongda Group Co and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wuchan Zhongda Group Co's current Gross Margin % is 3.36%, which is 26% above median its own 10-year median of 2.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wuchan Zhongda Group Co stock overvalued right now?
Based on GuruFocus' analysis, Wuchan Zhongda Group Co (SHSE:600704) is currently considered Fairly Valued. The stock's GF Value™ is ¥5.32, compared to a current price of ¥4.89 — trading 8.1% below its estimated fair value. The current Gross Margin % is 3.36%, which is 26% above median its 10-year median of 2.67 and 87.1% below the Conglomerates industry median of 25.96. Wuchan Zhongda Group Co's overall GF Score™ is 72/100 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 Wuchan Zhongda Group Co (SHSE:600704), the current Gross Margin % is 3.36% 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 Wuchan Zhongda Group Co (SHSE:600704) Overvalued in 2026?
Based on GuruFocus' analysis, Wuchan Zhongda Group Co stock appears to be undervalued.
The current stock price of ¥4.89 is trading 8.1% below its estimated GF Value™ of ¥5.32.
GuruFocus considers Wuchan Zhongda Group Co to be Fairly Valued.
Key valuation signals for SHSE:600704:
Gross Margin %: 3.36% (26% above median its 10-year median of 2.67)
GF Value™: ¥5.32 vs. price of ¥4.89 (8.1% below fair value)
Industry Position: 87.1% below the Conglomerates median (#493 of 511)
No single metric tells the full story. See the SHSE:600704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wuchan Zhongda Group Co Ltd is engaged in industrial investment, equity investment, asset management, investment management, management consulting, information consulting services. It is also engaged in car sales and leasing, e-commerce technology services, used car transactions and services.
72GF Score
Get the complete analysis for SHSE:600704
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:600704 has been successfully added to your 
