China Energy EngineeringSHSE:601868 +0.79%67 Gross Margin % is 15.37% as of Dec. 2025, which is 23% above its 10-year median of 12.53. GuruFocus rates SHSE:601868 with a GF Score™ of 67/100 and a GF Value™ of ¥2.76 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,721 Construction companies, China Energy Engineering ranks worse than 71.59% on this metric.
SHSE:601868's Gross Margin % is ranked worse than 71.59% of 1721
companies
in the Construction industry
Industry Median: 20.73
vs SHSE:601868: 13.00
China Energy Engineering had a gross margin of 15.37% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Energy Engineering was -2.00% per year.
China Energy Engineering (SHSE:601868) 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
China Energy Engineering had a gross margin of 15.37% for the quarter that ended in Dec. 2025 => 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.
China Energy Engineering Gross Margin % Related Terms
China Energy Engineering 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:601868 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, China Energy Engineering'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.
China Energy Engineering Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, China Energy Engineering's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Energy Engineering'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.
China Energy Engineering (SHSE:601868) has a Gross Margin % of 15.37% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Energy Engineering and its competitors. This is 23% above median its historical median of 12.53. Over the past decade, China Energy Engineering's Gross Margin % has ranged from 11.39 to 13.59. According to the industry distribution chart, China Energy Engineering ranks #1232 out of 1721 companies in the Construction industry, placing it in the top 71.6%.
Is China Energy Engineering's Gross Margin % too high?
China Energy Engineering's current Gross Margin % of 15.37% is 23% above median its 10-year median of 12.53. Over the past 10 years, this metric has ranged from a low of 11.39 to a high of 13.59. The Construction industry median Gross Margin % is 20.73. China Energy Engineering's value of 15.37% is 25.9% below this industry median. Based on the distribution chart, China Energy Engineering ranks #1232 out of 1721 companies in the Construction industry, which is below the industry midpoint. Overall, China Energy Engineering has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Energy Engineering's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, China Energy Engineering ranks #1232 out of 1721 companies for Gross Margin %. This places China Energy Engineering in the lower half of its industry. The industry median Gross Margin % is 20.73. China Energy Engineering's value of 15.37% is 25.9% below this benchmark. Historically, China Energy Engineering's own Gross Margin % has ranged from 11.39 to 13.59 over the past decade. While the company's 10-year median is 12.53 vs. the industry median of 20.73, China Energy Engineering 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 Construction company?
The median Gross Margin % among Construction companies is 20.73, based on 1,721 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. China Energy Engineering's current Gross Margin % of 15.37% is 25.9% 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 China Energy Engineering and its competitors. For the Construction industry, the median Gross Margin % is 20.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Energy Engineering's current Gross Margin % is 15.37%, which is 23% above median its own 10-year median of 12.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Energy Engineering stock overvalued right now?
Based on GuruFocus' analysis, China Energy Engineering (SHSE:601868) is currently considered Fairly Valued. The stock's GF Value™ is ¥2.76, compared to a current price of ¥2.55 — trading 7.6% below its estimated fair value. The current Gross Margin % is 15.37%, which is 23% above median its 10-year median of 12.53 and 25.9% below the Construction industry median of 20.73. China Energy Engineering's overall GF Score™ is 67/100 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 China Energy Engineering (SHSE:601868), the current Gross Margin % is 15.37% as of Dec. 2025. 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 China Energy Engineering (SHSE:601868) Overvalued in 2026?
Based on GuruFocus' analysis, China Energy Engineering stock appears to be undervalued.
The current stock price of ¥2.55 is trading 7.6% below its estimated GF Value™ of ¥2.76.
GuruFocus considers China Energy Engineering to be Fairly Valued.
Key valuation signals for SHSE:601868:
Gross Margin %: 15.37% (23% above median its 10-year median of 12.53)
GF Value™: ¥2.76 vs. price of ¥2.55 (7.6% below fair value)
Industry Position: 25.9% below the Construction median (#1232 of 1721)
No single metric tells the full story. See the SHSE:601868 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Energy Engineering Corporation Ltd focused on two core main businesses of energy power and water conservancy, coordinately expanded nine related diversified businesses of green transportation, green buildings and municipal administration, digital infrastructure (artificial intelligence), new materials, civil explosives, ecological and environmental protection, highend equipment, urban development and operation (real estate), and industrial finance, comprehensively constructed a new coordinated development layout of 2+9 businesses, formed five business sectors of survey, design and consulting services, construction and contracting, industrial manufacturing, investment and operation, and others, and has the integrated service capabilities covering the whole industry chain.
67GF Score
Get the complete analysis for SHSE:601868
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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