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Changyu Holding Group CoSHSE:603407 +4.09%18 Gross Margin % is 28.45% as of Mar. 2026, which is 15% above its 10-year median of 24.65. GuruFocus rates SHSE:603407 with a GF Score™ of 18/100. The stock has 2 warning signs investors should review. Among 1,558 Chemicals companies, Changyu Holding Group Co ranks worse than 98.33% on this metric.
Changyu Holding Group Co (SHSE:603407) 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
Changyu Holding Group Co had a gross margin of 28.45% 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.
Changyu Holding Group Co Gross Margin % Related Terms
Changyu Holding Group 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:603407 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Changyu Holding Group 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.
Changyu Holding Group Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Changyu Holding Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Changyu Holding Group 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.
Changyu Holding Group Co (SHSE:603407) has a Gross Margin % of 28.45% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Changyu Holding Group Co and its competitors. This is 15% above median its historical median of 24.65. According to the industry distribution chart, Changyu Holding Group Co ranks #1532 out of 1558 companies in the Chemicals industry, placing it in the top 98.3%.
Is Changyu Holding Group Co's Gross Margin % too high?
Changyu Holding Group Co's current Gross Margin % of 28.45% is 15% above median its 10-year median of 24.65. The Chemicals industry median Gross Margin % is 23.55. Changyu Holding Group Co's value of 28.45% is 20.8% above this industry median. Based on the distribution chart, Changyu Holding Group Co ranks #1532 out of 1558 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Changyu Holding Group Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Changyu Holding Group Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Changyu Holding Group Co ranks #1532 out of 1558 companies for Gross Margin %. This places Changyu Holding Group Co in the lower half of its industry. The industry median Gross Margin % is 23.55. Changyu Holding Group Co's value of 28.45% is 20.8% above this benchmark. While the company's 10-year median is 24.65 vs. the industry median of 23.55, Changyu Holding Group 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.55, based on 1,558 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. Changyu Holding Group Co's current Gross Margin % of 28.45% is 20.8% 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 Changyu Holding Group Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changyu Holding Group Co's current Gross Margin % is 28.45%, which is 15% above median its own 10-year median of 24.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changyu Holding Group Co stock overvalued right now?
Changyu Holding Group Co (SHSE:603407) has a current Gross Margin % of 28.45%. The current Gross Margin % is 28.45%, which is 15% above median its 10-year median of 24.65 and 20.8% above the Chemicals industry median of 23.55. Changyu Holding Group Co's overall GF Score™ is 18/100 with 2 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 Changyu Holding Group Co (SHSE:603407), the current Gross Margin % is 28.45% 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.
Changyu Holding Group Co Ltd is engaged in the research, development, production, and sale of zirconium products, specialty nylon products, and fine chemical products. Its main products include zirconium oxide, zirconium oxychloride, nano-zirconia powder materials, long-chain specialty nylon materials, long-chain dicarboxylic acids, and long-chain diols, which are used in the automotive, home appliance, communications, smart wearable, high-performance ceramics, and medical and pharmaceutical industries. It exports its products to Europe, the United States, Japan, South Korea, India, Southeast Asia, and other countries and regions.
18GF Score
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