SHSE:603258's Gross Margin % is ranked worse than 53.52% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs SHSE:603258: 58.39
Hangzhou Electronic Soul Network Technology Co had a gross margin of 56.58% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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
Hangzhou Electronic Soul Network Technology Co had a gross margin of 56.58% for the quarter that ended in Mar. 2026 => Durable 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.
Hangzhou Electronic Soul Network Technology Co Gross Margin % Related Terms
Hangzhou Electronic Soul Network Technology 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.
Hangzhou Electronic Soul Network Technology Co Gross Margin % Chart
Hangzhou Electronic Soul Network Technology Co Annual Data
SHSE:603258 vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Hangzhou Electronic Soul Network Technology 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.
Hangzhou Electronic Soul Network Technology Co Gross Margin % vs Interactive Media Industry
* 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.
Hangzhou Electronic Soul Network Technology Co (SHSE:603258) has a Gross Margin % of 56.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hangzhou Electronic Soul Network Technology Co and its competitors. This is 32% below median its historical median of 82.71. Over the past decade, Hangzhou Electronic Soul Network Technology Co's Gross Margin % has ranged from 58.39 to 92.81. According to the industry distribution chart, Hangzhou Electronic Soul Network Technology Co ranks #266 out of 497 companies in the Interactive Media industry, placing it in the top 53.5%.
Is Hangzhou Electronic Soul Network Technology Co's Gross Margin % too high?
Hangzhou Electronic Soul Network Technology Co's current Gross Margin % of 56.58% is 32% below median its 10-year median of 82.71. Over the past 10 years, this metric has ranged from a low of 58.39 to a high of 92.81. The Interactive Media industry median Gross Margin % is 62.58. Hangzhou Electronic Soul Network Technology Co's value of 56.58% is 9.6% below this industry median. Based on the distribution chart, Hangzhou Electronic Soul Network Technology Co ranks #266 out of 497 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Hangzhou Electronic Soul Network Technology Co has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou Electronic Soul Network Technology Co's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Hangzhou Electronic Soul Network Technology Co ranks #266 out of 497 companies for Gross Margin %. This places Hangzhou Electronic Soul Network Technology Co in the lower half of its industry. The industry median Gross Margin % is 62.58. Hangzhou Electronic Soul Network Technology Co's value of 56.58% is 9.6% below this benchmark. Historically, Hangzhou Electronic Soul Network Technology Co's own Gross Margin % has ranged from 58.39 to 92.81 over the past decade. While the company's 10-year median is 82.71 vs. the industry median of 62.58, Hangzhou Electronic Soul Network Technology 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. Hangzhou Electronic Soul Network Technology Co's current Gross Margin % of 56.58% is 9.6% 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 Hangzhou Electronic Soul Network Technology Co and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou Electronic Soul Network Technology Co's current Gross Margin % is 56.58%, which is 32% below median its own 10-year median of 82.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou Electronic Soul Network Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou Electronic Soul Network Technology Co (SHSE:603258) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥13.32, compared to a current price of ¥11.64 — trading 12.6% below its estimated fair value. The current Gross Margin % is 56.58%, which is 32% below median its 10-year median of 82.71 and 9.6% below the Interactive Media industry median of 62.58. Hangzhou Electronic Soul Network Technology Co's overall GF Score™ is 62/100 with 4 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 Hangzhou Electronic Soul Network Technology Co (SHSE:603258), the current Gross Margin % is 56.58% 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 Hangzhou Electronic Soul Network Technology Co (SHSE:603258) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou Electronic Soul Network Technology Co stock appears to be undervalued.
The current stock price of ¥11.64 is trading 12.6% below its estimated GF Value™ of ¥13.32.
GuruFocus considers Hangzhou Electronic Soul Network Technology Co to be Modestly Undervalued.
Key valuation signals for SHSE:603258:
Gross Margin %: 56.58% (32% below median its 10-year median of 82.71)
GF Value™: ¥13.32 vs. price of ¥11.64 (12.6% below fair value)
Industry Position: 9.6% below the Interactive Media median (#266 of 497)
No single metric tells the full story. See the SHSE:603258 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou Electronic Soul Network Technology Co Business Description
Hangzhou Electronic Soul Network Technology Co Ltd is an electronic gaming and multimedia company. It is the mainly engaged in the research and development and operation of online game products. The company's revenue is mainly derived from the end-game product Dream Three Kingdoms.
62GF Score
Get the complete analysis for SHSE:603258
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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