Shanghai Huafon AluminiumSHSE:601702 +2.89%85 Gross Margin % is 14.26% as of Mar. 2026, which is 14% below its 10-year median of 16.57. GuruFocus rates SHSE:601702 with a GF Score™ of 85/100 and a GF Value™ of ¥22.68 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 729 Metals & Mining companies, Shanghai Huafon Aluminium ranks worse than 69.55% on this metric.
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
Shanghai Huafon Aluminium had a gross margin of 14.26% 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.
Shanghai Huafon Aluminium Gross Margin % Related Terms
Shanghai Huafon Aluminium 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.
For the Aluminum subindustry, Shanghai Huafon Aluminium'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.
Shanghai Huafon Aluminium Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Shanghai Huafon Aluminium's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Huafon Aluminium'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.
Shanghai Huafon Aluminium (SHSE:601702) has a Gross Margin % of 14.26% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Huafon Aluminium and its competitors. This is 14% below median its historical median of 16.57. Over the past decade, Shanghai Huafon Aluminium's Gross Margin % has ranged from 13.71 to 20.45. According to the industry distribution chart, Shanghai Huafon Aluminium ranks #507 out of 729 companies in the Metals & Mining industry, placing it in the top 69.5%.
Is Shanghai Huafon Aluminium's Gross Margin % too high?
Shanghai Huafon Aluminium's current Gross Margin % of 14.26% is 14% below median its 10-year median of 16.57. Over the past 10 years, this metric has ranged from a low of 13.71 to a high of 20.45. The Metals & Mining industry median Gross Margin % is 26.15. Shanghai Huafon Aluminium's value of 14.26% is 45.5% below this industry median. Based on the distribution chart, Shanghai Huafon Aluminium ranks #507 out of 729 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Shanghai Huafon Aluminium has a GF Score™ of 85/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shanghai Huafon Aluminium's Gross Margin % compare to AA?
According to the Metals & Mining industry distribution chart, Shanghai Huafon Aluminium ranks #507 out of 729 companies for Gross Margin %. This places Shanghai Huafon Aluminium in the lower half of its industry. The industry median Gross Margin % is 26.15. Shanghai Huafon Aluminium's value of 14.26% is 45.5% below this benchmark. Historically, Shanghai Huafon Aluminium's own Gross Margin % has ranged from 13.71 to 20.45 over the past decade. While the company's 10-year median is 16.57 vs. the industry median of 26.15, Shanghai Huafon Aluminium 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.15, based on 729 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. Shanghai Huafon Aluminium's current Gross Margin % of 14.26% is 45.5% 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 Shanghai Huafon Aluminium and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Huafon Aluminium's current Gross Margin % is 14.26%, which is 14% below median its own 10-year median of 16.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Huafon Aluminium stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Huafon Aluminium (SHSE:601702) is currently considered Possible Value Trap. The stock's GF Value™ is ¥22.68, compared to a current price of ¥14.22 — trading 37.3% below its estimated fair value. The current Gross Margin % is 14.26%, which is 14% below median its 10-year median of 16.57 and 45.5% below the Metals & Mining industry median of 26.15. Shanghai Huafon Aluminium's overall GF Score™ is 85/100 with 3 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 Shanghai Huafon Aluminium (SHSE:601702), the current Gross Margin % is 14.26% 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 Shanghai Huafon Aluminium (SHSE:601702) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Huafon Aluminium stock appears to be undervalued.
The current stock price of ¥14.22 is trading 37.3% below its estimated GF Value™ of ¥22.68.
GuruFocus considers Shanghai Huafon Aluminium to be Possible Value Trap.
Key valuation signals for SHSE:601702:
Gross Margin %: 14.26% (14% below median its 10-year median of 16.57)
GF Value™: ¥22.68 vs. price of ¥14.22 (37.3% below fair value)
Industry Position: 45.5% below the Metals & Mining median (#507 of 729)
No single metric tells the full story. See the SHSE:601702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Huafon Aluminium Corp is engaged in production and sales of aluminum sheet, strip and foil. The company's products include brazed heat exchangers material; water tanks, heaters, air coolers; condenser; evaporator, heater, oil cooler; and Other Industrial Products Materials. Its products line covers all kinds of alloyed material and specifications which is widely used in the automobile and construction machinery and equipment cooling systems, power station cooling system, micro-channel cooler and all kinds of both commercial and residential air-conditioners. It also processes all kinds of aluminum products processing 1,3,4,5,7 series, which are widely used in transportation construction, food packaging, electronics information industry and other fields.
85GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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