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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.
ADD Industry (Zhejiang)SHSE:603089 -3.18%67 Gross Margin % is 18.14% as of Mar. 2026, which is 25% below its 10-year median of 24.19. GuruFocus rates SHSE:603089 with a GF Score™ of 67/100 and a GF Value™ of ¥13.66 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,307 Vehicles & Parts companies, ADD Industry (Zhejiang) ranks worse than 51.57% on this metric.
SHSE:603089's Gross Margin % is ranked worse than 51.57% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 19.89
vs SHSE:603089: 19.48
ADD Industry (Zhejiang) had a gross margin of 18.14% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ADD Industry (Zhejiang) was -0.70% per year.
ADD Industry (Zhejiang) (SHSE:603089) 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
ADD Industry (Zhejiang) had a gross margin of 18.14% 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.
ADD Industry (Zhejiang) Gross Margin % Related Terms
ADD Industry (Zhejiang) 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:603089 vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, ADD Industry (Zhejiang)'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.
ADD Industry (Zhejiang) Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, ADD Industry (Zhejiang)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where ADD Industry (Zhejiang)'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.
ADD Industry (Zhejiang) (SHSE:603089) has a Gross Margin % of 18.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ADD Industry (Zhejiang) and its competitors. This is 25% below median its historical median of 24.19. Over the past decade, ADD Industry (Zhejiang)'s Gross Margin % has ranged from 19.48 to 31.20. According to the industry distribution chart, ADD Industry (Zhejiang) ranks #674 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 51.6%.
Is ADD Industry (Zhejiang)'s Gross Margin % too high?
ADD Industry (Zhejiang)'s current Gross Margin % of 18.14% is 25% below median its 10-year median of 24.19. Over the past 10 years, this metric has ranged from a low of 19.48 to a high of 31.20. The Vehicles & Parts industry median Gross Margin % is 19.89. ADD Industry (Zhejiang)'s value of 18.14% is 8.8% below this industry median. Based on the distribution chart, ADD Industry (Zhejiang) ranks #674 out of 1307 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, ADD Industry (Zhejiang) has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ADD Industry (Zhejiang)'s Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, ADD Industry (Zhejiang) ranks #674 out of 1307 companies for Gross Margin %. This places ADD Industry (Zhejiang) in the lower half of its industry. The industry median Gross Margin % is 19.89. ADD Industry (Zhejiang)'s value of 18.14% is 8.8% below this benchmark. Historically, ADD Industry (Zhejiang)'s own Gross Margin % has ranged from 19.48 to 31.20 over the past decade. While the company's 10-year median is 24.19 vs. the industry median of 19.89, ADD Industry (Zhejiang) 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 19.89, 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. ADD Industry (Zhejiang)'s current Gross Margin % of 18.14% is 8.8% 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 ADD Industry (Zhejiang) and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ADD Industry (Zhejiang)'s current Gross Margin % is 18.14%, which is 25% below median its own 10-year median of 24.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ADD Industry (Zhejiang) stock overvalued right now?
Based on GuruFocus' analysis, ADD Industry (Zhejiang) (SHSE:603089) is currently considered Possible Value Trap. The stock's GF Value™ is ¥13.66, compared to a current price of ¥8.21 — trading 39.9% below its estimated fair value. The current Gross Margin % is 18.14%, which is 25% below median its 10-year median of 24.19 and 8.8% below the Vehicles & Parts industry median of 19.89. ADD Industry (Zhejiang)'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 ADD Industry (Zhejiang) (SHSE:603089), the current Gross Margin % is 18.14% 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 ADD Industry (Zhejiang) (SHSE:603089) Overvalued in 2026?
Based on GuruFocus' analysis, ADD Industry (Zhejiang) stock appears to be undervalued.
The current stock price of ¥8.21 is trading 39.9% below its estimated GF Value™ of ¥13.66.
GuruFocus considers ADD Industry (Zhejiang) to be Possible Value Trap.
Key valuation signals for SHSE:603089:
Gross Margin %: 18.14% (25% below median its 10-year median of 24.19)
GF Value™: ¥13.66 vs. price of ¥8.21 (39.9% below fair value)
Industry Position: 8.8% below the Vehicles & Parts median (#674 of 1307)
No single metric tells the full story. See the SHSE:603089 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ADD Industry (Zhejiang) Corp Ltd manufactures and sells shock absorbers for vehicle suspension system. It offers twin-tube shock absorbers, strut cartridges, shock absorbers with spring seat, struts, airbag shock absorbers, strut assemblies, steering dampers, adjustable shock absorbers, and cabin dampers for passenger and commercial vehicles.
67GF Score
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