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.
Henan Thinker Automatic Equipment Co (SHSE:603508) 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
Henan Thinker Automatic Equipment Co had a gross margin of 65.19% for the quarter that ended in Jun. 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.
Henan Thinker Automatic Equipment Co Gross Margin % Related Terms
Henan Thinker Automatic Equipment 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.
Henan Thinker Automatic Equipment Co Gross Margin % Chart
SHSE:603508 vs COHR, KEYS, GRMN: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, Henan Thinker Automatic Equipment 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.
Henan Thinker Automatic Equipment Co Gross Margin % vs Hardware 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.
Henan Thinker Automatic Equipment Co (SHSE:603508) has a Gross Margin % of 65.19% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Henan Thinker Automatic Equipment Co and its competitors. This is near median its historical median of 60.96. Over the past decade, Henan Thinker Automatic Equipment Co's Gross Margin % has ranged from 58.49 to 66.76. According to the industry distribution chart, Henan Thinker Automatic Equipment Co ranks #103 out of 2453 companies in the Hardware industry, placing it in the top 4.2%.
Is Henan Thinker Automatic Equipment Co's Gross Margin % too high?
Henan Thinker Automatic Equipment Co's current Gross Margin % of 65.19% is near median its 10-year median of 60.96. Over the past 10 years, this metric has ranged from a low of 58.49 to a high of 66.76. The Hardware industry median Gross Margin % is 24.50. Henan Thinker Automatic Equipment Co's value of 65.19% is 166.1% above this industry median. Based on the distribution chart, Henan Thinker Automatic Equipment Co ranks #103 out of 2453 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Henan Thinker Automatic Equipment Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Henan Thinker Automatic Equipment Co's Gross Margin % compare to COHR and KEYS?
According to the Hardware industry distribution chart, Henan Thinker Automatic Equipment Co ranks #103 out of 2453 companies for Gross Margin %. This places Henan Thinker Automatic Equipment Co in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.50. Henan Thinker Automatic Equipment Co's value of 65.19% is 166.1% above this benchmark. Historically, Henan Thinker Automatic Equipment Co's own Gross Margin % has ranged from 58.49 to 66.76 over the past decade. While the company's 10-year median is 60.96 vs. the industry median of 24.50, Henan Thinker Automatic Equipment 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,453 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. Henan Thinker Automatic Equipment Co's current Gross Margin % of 65.19% is 166.1% 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 Henan Thinker Automatic Equipment Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Thinker Automatic Equipment Co's current Gross Margin % is 65.19%, which is near median its own 10-year median of 60.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Thinker Automatic Equipment Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Thinker Automatic Equipment Co (SHSE:603508) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥27.45, compared to a current price of ¥21.50 — trading 21.7% below its estimated fair value. The current Gross Margin % is 65.19%, which is near median its 10-year median of 60.96 and 166.1% above the Hardware industry median of 24.50. Henan Thinker Automatic Equipment Co's overall GF Score™ is 75/100 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 Henan Thinker Automatic Equipment Co (SHSE:603508), the current Gross Margin % is 65.19% as of Jun. 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 Henan Thinker Automatic Equipment Co (SHSE:603508) Overvalued in 2026?
Based on GuruFocus' analysis, Henan Thinker Automatic Equipment Co stock appears to be undervalued.
The current stock price of ¥21.50 is trading 21.7% below its estimated GF Value™ of ¥27.45.
GuruFocus considers Henan Thinker Automatic Equipment Co to be Modestly Undervalued.
Key valuation signals for SHSE:603508:
Gross Margin %: 65.19% (near median its 10-year median of 60.96)
GF Value™: ¥27.45 vs. price of ¥21.50 (21.7% below fair value)
Industry Position: 166.1% above the Hardware median (#103 of 2453)
No single metric tells the full story. See the SHSE:603508 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Henan Thinker Automatic Equipment Co Ltd is engaged in Software and IT services. Its products include LKJ2000 train running monitor device, Wireless Shunting Locomotive Signaling and monitoring systems, and among others.
75GF Score
Get the complete analysis for SHSE:603508
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:603508 has been successfully added to your 
