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Tongkun Group CoSHSE:601233 +5.14%72 Gross Margin % is 9.09% as of Mar. 2026, which is 20% above its 10-year median of 7.57. GuruFocus rates SHSE:601233 with a GF Score™ of 72/100 and a GF Value™ of ¥16.87 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,026 Manufacturing - Apparel & Accessories companies, Tongkun Group Co ranks worse than 91.33% on this metric.
Tongkun Group Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.8%.
The historical rank and industry rank for Tongkun Group Co's Gross Margin % or its related term are showing as below:
SHSE:601233'
s Gross Margin % Range Over the Past 10 Years
Min: 3.23 Med: 7.57 Max: 11.81
Current: 5.93
During the past 13 years, the highestGross Margin % of Tongkun Group Co was 11.81%. The lowest was 3.23%. And the median was 7.57%.
SHSE:601233's Gross Margin % is ranked worse than 91.33% of 1026
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.295
vs SHSE:601233: 5.93
Tongkun Group Co had a gross margin of 9.09% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tongkun Group Co was -7.80% per year.
Tongkun Group Co (SHSE:601233) 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
Tongkun Group Co had a gross margin of 9.09% 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.
Tongkun Group Co Gross Margin % Related Terms
Tongkun Group Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tongkun 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.
For the Textile Manufacturing subindustry, Tongkun 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.
Tongkun Group Co Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Tongkun Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tongkun 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.
Tongkun Group Co (SHSE:601233) has a Gross Margin % of 9.09% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tongkun Group Co and its competitors. This is 20% above median its historical median of 7.57. Over the past decade, Tongkun Group Co's Gross Margin % has ranged from 3.23 to 11.81. According to the industry distribution chart, Tongkun Group Co ranks #937 out of 1026 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 91.3%.
Is Tongkun Group Co's Gross Margin % too high?
Tongkun Group Co's current Gross Margin % of 9.09% is 20% above median its 10-year median of 7.57. Over the past 10 years, this metric has ranged from a low of 3.23 to a high of 11.81. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.30. Tongkun Group Co's value of 9.09% is 67.9% below this industry median. Based on the distribution chart, Tongkun Group Co ranks #937 out of 1026 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Tongkun Group Co has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tongkun Group Co's Gross Margin % compare to AIN?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Tongkun Group Co ranks #937 out of 1026 companies for Gross Margin %. This places Tongkun Group Co in the lower half of its industry. The industry median Gross Margin % is 28.30. Tongkun Group Co's value of 9.09% is 67.9% below this benchmark. Historically, Tongkun Group Co's own Gross Margin % has ranged from 3.23 to 11.81 over the past decade. While the company's 10-year median is 7.57 vs. the industry median of 28.30, Tongkun 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.30, based on 1,026 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. Tongkun Group Co's current Gross Margin % of 9.09% is 67.9% 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 Tongkun Group Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongkun Group Co's current Gross Margin % is 9.09%, which is 20% above median its own 10-year median of 7.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongkun Group Co stock overvalued right now?
Based on GuruFocus' analysis, Tongkun Group Co (SHSE:601233) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥16.87, compared to a current price of ¥22.29 — trading 32.1% above its estimated fair value. The current Gross Margin % is 9.09%, which is 20% above median its 10-year median of 7.57 and 67.9% below the Manufacturing - Apparel & Accessories industry median of 28.30. Tongkun Group Co's overall GF Score™ is 72/100 with 10 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 Tongkun Group Co (SHSE:601233), the current Gross Margin % is 9.09% 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 Tongkun Group Co (SHSE:601233) Overvalued in 2026?
Based on GuruFocus' analysis, Tongkun Group Co stock appears to be overvalued.
The current stock price of ¥22.29 is trading 32.1% above its estimated GF Value™ of ¥16.87.
GuruFocus considers Tongkun Group Co to be Significantly Overvalued.
Key valuation signals for SHSE:601233:
Gross Margin %: 9.09% (20% above median its 10-year median of 7.57)
GF Value™: ¥16.87 vs. price of ¥22.29 (32.1% above fair value)
Industry Position: 67.9% below the Manufacturing - Apparel & Accessories median (#937 of 1026)
No single metric tells the full story. See the SHSE:601233 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongkun Group Co Ltd is a China-based company engaged in polyester and polyester filament yarn manufacturing. It offers various polyester filament yarns, such as a pre-oriented filament, draw textured yarns, polyester chips, and others under the GOLDENCOCK and Tong Kun brand names.
72GF Score
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