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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.
Dongguan HuaLi Industries CoSHSE:603038 +4.06%64 Gross Margin % is 36.25% as of Mar. 2026, which is 46% above its 10-year median of 24.75. GuruFocus rates SHSE:603038 with a GF Score™ of 64/100 and a GF Value™ of ¥16.69 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 417 Furnishings, Fixtures & Appliances companies, Dongguan HuaLi Industries Co ranks better than 52.28% on this metric.
SHSE:603038's Gross Margin % is ranked better than 52.28% of 417
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 29.36
vs SHSE:603038: 30.62
Dongguan HuaLi Industries Co had a gross margin of 36.25% for the quarter that ended in Mar. 2026 => Competition eroding margins
Dongguan HuaLi Industries Co (SHSE:603038) 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
Dongguan HuaLi Industries Co had a gross margin of 36.25% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Dongguan HuaLi Industries Co Gross Margin % Related Terms
Dongguan HuaLi Industries 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:603038 vs SN, SGI, MHK: Gross Margin % Comparison
For the Furnishings, Fixtures & Appliances subindustry, Dongguan HuaLi Industries 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.
Dongguan HuaLi Industries Co Gross Margin % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Dongguan HuaLi Industries Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dongguan HuaLi Industries 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.
Dongguan HuaLi Industries Co (SHSE:603038) has a Gross Margin % of 36.25% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dongguan HuaLi Industries Co and its competitors. This is 46% above median its historical median of 24.75. Over the past decade, Dongguan HuaLi Industries Co's Gross Margin % has ranged from 10.52 to 33.41. According to the industry distribution chart, Dongguan HuaLi Industries Co ranks #199 out of 417 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 47.7%.
Is Dongguan HuaLi Industries Co's Gross Margin % too high?
Dongguan HuaLi Industries Co's current Gross Margin % of 36.25% is 46% above median its 10-year median of 24.75. Over the past 10 years, this metric has ranged from a low of 10.52 to a high of 33.41. The Furnishings, Fixtures & Appliances industry median Gross Margin % is 29.36. Dongguan HuaLi Industries Co's value of 36.25% is 23.5% above this industry median. Based on the distribution chart, Dongguan HuaLi Industries Co ranks #199 out of 417 companies in the Furnishings, Fixtures & Appliances industry, which is above the industry midpoint. Overall, Dongguan HuaLi Industries Co has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dongguan HuaLi Industries Co's Gross Margin % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Dongguan HuaLi Industries Co ranks #199 out of 417 companies for Gross Margin %. This puts Dongguan HuaLi Industries Co in the upper half of its industry. The industry median Gross Margin % is 29.36. Dongguan HuaLi Industries Co's value of 36.25% is 23.5% above this benchmark. Historically, Dongguan HuaLi Industries Co's own Gross Margin % has ranged from 10.52 to 33.41 over the past decade. While the company's 10-year median is 24.75 vs. the industry median of 29.36, Dongguan HuaLi Industries Co has consistently been above 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 Furnishings, Fixtures & Appliances company?
The median Gross Margin % among Furnishings, Fixtures & Appliances companies is 29.36, based on 417 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. Dongguan HuaLi Industries Co's current Gross Margin % of 36.25% is 23.5% above 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 Dongguan HuaLi Industries Co and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Gross Margin % is 29.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dongguan HuaLi Industries Co's current Gross Margin % is 36.25%, which is 46% above median its own 10-year median of 24.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dongguan HuaLi Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Dongguan HuaLi Industries Co (SHSE:603038) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥16.69, compared to a current price of ¥13.07 — trading 21.7% below its estimated fair value. The current Gross Margin % is 36.25%, which is 46% above median its 10-year median of 24.75 and 23.5% above the Furnishings, Fixtures & Appliances industry median of 29.36. Dongguan HuaLi Industries Co's overall GF Score™ is 64/100 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 Dongguan HuaLi Industries Co (SHSE:603038), the current Gross Margin % is 36.25% 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 Dongguan HuaLi Industries Co (SHSE:603038) Overvalued in 2026?
Based on GuruFocus' analysis, Dongguan HuaLi Industries Co stock appears to be undervalued.
The current stock price of ¥13.07 is trading 21.7% below its estimated GF Value™ of ¥16.69.
GuruFocus considers Dongguan HuaLi Industries Co to be Modestly Undervalued.
Key valuation signals for SHSE:603038:
Gross Margin %: 36.25% (46% above median its 10-year median of 24.75)
GF Value™: ¥16.69 vs. price of ¥13.07 (21.7% below fair value)
Industry Position: 23.5% above the Furnishings, Fixtures & Appliances median (#199 of 417)
No single metric tells the full story. See the SHSE:603038 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dongguan HuaLi Industries Co Ltd manufactures decoration materials. The company produces and distributes edge banding decoration materials, special type decoration materials, and other decorative materials. It is mainly used for edge sealing, surface decoration and indoor decoration of panel furniture Decoration, decoration.
64GF Score
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