Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Shandong Linglong Tyre CoSHSE:601966 +1.84%69 Gross Margin % is 17.07% as of Mar. 2026, which is 25% below its 10-year median of 22.88. GuruFocus rates SHSE:601966 with a GF Score™ of 69/100 and a GF Value™ of ¥20.23 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,307 Vehicles & Parts companies, Shandong Linglong Tyre Co ranks worse than 59.07% on this metric.
SHSE:601966's Gross Margin % is ranked worse than 59.07% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 19.88
vs SHSE:601966: 17.52
Shandong Linglong Tyre Co had a gross margin of 17.07% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Shandong Linglong Tyre Co (SHSE:601966) 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
Shandong Linglong Tyre Co had a gross margin of 17.07% 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.
Shandong Linglong Tyre Co Gross Margin % Related Terms
Shandong Linglong Tyre 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:601966 vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Shandong Linglong Tyre 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.
Shandong Linglong Tyre Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Shandong Linglong Tyre Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Linglong Tyre 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.
Shandong Linglong Tyre Co (SHSE:601966) has a Gross Margin % of 17.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shandong Linglong Tyre Co and its competitors. This is 25% below median its historical median of 22.88. Over the past decade, Shandong Linglong Tyre Co's Gross Margin % has ranged from 13.61 to 27.84. According to the industry distribution chart, Shandong Linglong Tyre Co ranks #772 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 59.1%.
Is Shandong Linglong Tyre Co's Gross Margin % too high?
Shandong Linglong Tyre Co's current Gross Margin % of 17.07% is 25% below median its 10-year median of 22.88. Over the past 10 years, this metric has ranged from a low of 13.61 to a high of 27.84. The Vehicles & Parts industry median Gross Margin % is 19.88. Shandong Linglong Tyre Co's value of 17.07% is 14.1% below this industry median. Based on the distribution chart, Shandong Linglong Tyre Co ranks #772 out of 1307 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Shandong Linglong Tyre Co has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shandong Linglong Tyre Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Shandong Linglong Tyre Co ranks #772 out of 1307 companies for Gross Margin %. This places Shandong Linglong Tyre Co in the lower half of its industry. The industry median Gross Margin % is 19.88. Shandong Linglong Tyre Co's value of 17.07% is 14.1% below this benchmark. Historically, Shandong Linglong Tyre Co's own Gross Margin % has ranged from 13.61 to 27.84 over the past decade. While the company's 10-year median is 22.88 vs. the industry median of 19.88, Shandong Linglong Tyre 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.88, based on 1,307 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. Shandong Linglong Tyre Co's current Gross Margin % of 17.07% is 14.1% 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 Shandong Linglong Tyre Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Linglong Tyre Co's current Gross Margin % is 17.07%, which is 25% below median its own 10-year median of 22.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Linglong Tyre Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Linglong Tyre Co (SHSE:601966) is currently considered Possible Value Trap. The stock's GF Value™ is ¥20.23, compared to a current price of ¥11.07 — trading 45.3% below its estimated fair value. The current Gross Margin % is 17.07%, which is 25% below median its 10-year median of 22.88 and 14.1% below the Vehicles & Parts industry median of 19.88. Shandong Linglong Tyre Co's overall GF Score™ is 69/100 with 6 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 Shandong Linglong Tyre Co (SHSE:601966), the current Gross Margin % is 17.07% 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 Shandong Linglong Tyre Co (SHSE:601966) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Linglong Tyre Co stock appears to be undervalued.
The current stock price of ¥11.07 is trading 45.3% below its estimated GF Value™ of ¥20.23.
GuruFocus considers Shandong Linglong Tyre Co to be Possible Value Trap.
Key valuation signals for SHSE:601966:
Gross Margin %: 17.07% (25% below median its 10-year median of 22.88)
GF Value™: ¥20.23 vs. price of ¥11.07 (45.3% below fair value)
Industry Position: 14.1% below the Vehicles & Parts median (#772 of 1307)
No single metric tells the full story. See the SHSE:601966 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Linglong Tyre Co Ltd is a China-based tire manufacturing company engaged in the business of manufacturing and selling tires. Its product portfolio comprises of passenger car radial tires, light truck radial tires, truck and bus radial tires, specialty tires, winter tires, SUV tires, and others. It offers tire products under the brands Linglong, LEAO, GREEN MAX, ATLAS, INFINITY, CROSSWIND, and EVOLUXX.
69GF Score
Get the complete analysis for SHSE:601966
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:601966 has been successfully added to your 
