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Shang Gong Group CoSHSE:600843 -2.17%44 Gross Margin % is 16.87% as of Mar. 2026, which is 32% below its 10-year median of 24.74. GuruFocus rates SHSE:600843 with a GF Score™ of 44/100 and a GF Value™ of ¥9.49 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,999 Industrial Products companies, Shang Gong Group Co ranks worse than 76.33% on this metric.
Shang Gong Group Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.7%.
The historical rank and industry rank for Shang Gong Group Co's Gross Margin % or its related term are showing as below:
SHSE:600843'
s Gross Margin % Range Over the Past 10 Years
Min: 16.55 Med: 24.74 Max: 27.44
Current: 16.55
During the past 13 years, the highestGross Margin % of Shang Gong Group Co was 27.44%. The lowest was 16.55%. And the median was 24.74%.
SHSE:600843's Gross Margin % is ranked worse than 76.33% of 2999
companies
in the Industrial Products industry
Industry Median: 26.85
vs SHSE:600843: 16.55
Shang Gong Group Co had a gross margin of 16.87% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Shang Gong Group Co was -7.70% per year.
Shang Gong Group Co (SHSE:600843) 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
Shang Gong Group Co had a gross margin of 16.87% 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.
Shang Gong Group Co Gross Margin % Related Terms
Shang Gong Group Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Shang Gong Group 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:600843 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Shang Gong 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.
Shang Gong Group Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shang Gong Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shang Gong 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.
Shang Gong Group Co (SHSE:600843) has a Gross Margin % of 16.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shang Gong Group Co and its competitors. This is 32% below median its historical median of 24.74. Over the past decade, Shang Gong Group Co's Gross Margin % has ranged from 16.55 to 27.44. According to the industry distribution chart, Shang Gong Group Co ranks #2289 out of 2999 companies in the Industrial Products industry, placing it in the top 76.3%.
Is Shang Gong Group Co's Gross Margin % too high?
Shang Gong Group Co's current Gross Margin % of 16.87% is 32% below median its 10-year median of 24.74. Over the past 10 years, this metric has ranged from a low of 16.55 to a high of 27.44. The Industrial Products industry median Gross Margin % is 26.85. Shang Gong Group Co's value of 16.87% is 37.2% below this industry median. Based on the distribution chart, Shang Gong Group Co ranks #2289 out of 2999 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Shang Gong Group Co has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shang Gong Group Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shang Gong Group Co ranks #2289 out of 2999 companies for Gross Margin %. This places Shang Gong Group Co in the lower half of its industry. The industry median Gross Margin % is 26.85. Shang Gong Group Co's value of 16.87% is 37.2% below this benchmark. Historically, Shang Gong Group Co's own Gross Margin % has ranged from 16.55 to 27.44 over the past decade. While the company's 10-year median is 24.74 vs. the industry median of 26.85, Shang Gong 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.85, based on 2,999 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. Shang Gong Group Co's current Gross Margin % of 16.87% is 37.2% 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 Shang Gong Group Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shang Gong Group Co's current Gross Margin % is 16.87%, which is 32% below median its own 10-year median of 24.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shang Gong Group Co stock overvalued right now?
Based on GuruFocus' analysis, Shang Gong Group Co (SHSE:600843) is currently considered Possible Value Trap. The stock's GF Value™ is ¥9.49, compared to a current price of ¥6.31 — trading 33.5% below its estimated fair value. The current Gross Margin % is 16.87%, which is 32% below median its 10-year median of 24.74 and 37.2% below the Industrial Products industry median of 26.85. Shang Gong Group Co's overall GF Score™ is 44/100 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 Shang Gong Group Co (SHSE:600843), the current Gross Margin % is 16.87% 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 Shang Gong Group Co (SHSE:600843) Overvalued in 2026?
Based on GuruFocus' analysis, Shang Gong Group Co stock appears to be undervalued.
The current stock price of ¥6.31 is trading 33.5% below its estimated GF Value™ of ¥9.49.
GuruFocus considers Shang Gong Group Co to be Possible Value Trap.
Key valuation signals for SHSE:600843:
Gross Margin %: 16.87% (32% below median its 10-year median of 24.74)
GF Value™: ¥9.49 vs. price of ¥6.31 (33.5% below fair value)
Industry Position: 37.2% below the Industrial Products median (#2289 of 2999)
No single metric tells the full story. See the SHSE:600843 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shang Gong Group Co Ltd is engaged in research & development, production, sale, and maintenance of sewing machines and spare parts in China. It is also engaged in the production of auto parts, office equipment, and related trading businesses. The company provides high-end sewing products for automakers like Mercedes-Benz, BMW, Audi, and General Motors; in aerospace and new material fields also have large customers including Boeing, Airbus, and COMAC. It owns manufacturing enterprises in China, Germany, the Czech Republic, and Romania, and its sales network has spread across the world. Its household sewing machine brands - Butterfly, Flyman, and Bee are widely known in China and sold to overseas markets.
44GF Score
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