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Shandong Huifa Foodstuff CoSHSE:603536 +3.94%62 Gross Margin % is 21.69% as of Mar. 2026, which is 20% above its 10-year median of 18.03. GuruFocus rates SHSE:603536 with a GF Score™ of 62/100 and a GF Value™ of ¥7.26 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,910 Consumer Packaged Goods companies, Shandong Huifa Foodstuff Co ranks worse than 66.39% on this metric.
SHSE:603536's Gross Margin % is ranked worse than 66.39% of 1910
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs SHSE:603536: 19.17
Shandong Huifa Foodstuff Co had a gross margin of 21.69% for the quarter that ended in Mar. 2026 => Competition eroding margins
Shandong Huifa Foodstuff Co (SHSE:603536) 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
Shandong Huifa Foodstuff Co had a gross margin of 21.69% 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.
Shandong Huifa Foodstuff Co Gross Margin % Related Terms
Shandong Huifa Foodstuff 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:603536 vs KHC, GIS: Gross Margin % Comparison
For the Packaged Foods subindustry, Shandong Huifa Foodstuff 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.
Shandong Huifa Foodstuff Co Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Shandong Huifa Foodstuff Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Huifa Foodstuff 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.
Shandong Huifa Foodstuff Co (SHSE:603536) has a Gross Margin % of 21.69% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shandong Huifa Foodstuff Co and its competitors. This is 20% above median its historical median of 18.03. Over the past decade, Shandong Huifa Foodstuff Co's Gross Margin % has ranged from 13.93 to 28.33. According to the industry distribution chart, Shandong Huifa Foodstuff Co ranks #1268 out of 1910 companies in the Consumer Packaged Goods industry, placing it in the top 66.4%.
Is Shandong Huifa Foodstuff Co's Gross Margin % too high?
Shandong Huifa Foodstuff Co's current Gross Margin % of 21.69% is 20% above median its 10-year median of 18.03. Over the past 10 years, this metric has ranged from a low of 13.93 to a high of 28.33. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Shandong Huifa Foodstuff Co's value of 21.69% is 17.7% below this industry median. Based on the distribution chart, Shandong Huifa Foodstuff Co ranks #1268 out of 1910 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Shandong Huifa Foodstuff Co has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Huifa Foodstuff Co's Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Shandong Huifa Foodstuff Co ranks #1268 out of 1910 companies for Gross Margin %. This places Shandong Huifa Foodstuff Co in the lower half of its industry. The industry median Gross Margin % is 26.37. Shandong Huifa Foodstuff Co's value of 21.69% is 17.7% below this benchmark. Historically, Shandong Huifa Foodstuff Co's own Gross Margin % has ranged from 13.93 to 28.33 over the past decade. While the company's 10-year median is 18.03 vs. the industry median of 26.37, Shandong Huifa Foodstuff 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 a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,910 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. Shandong Huifa Foodstuff Co's current Gross Margin % of 21.69% is 17.7% 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 Shandong Huifa Foodstuff Co and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Huifa Foodstuff Co's current Gross Margin % is 21.69%, which is 20% above median its own 10-year median of 18.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Huifa Foodstuff Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Huifa Foodstuff Co (SHSE:603536) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥7.26, compared to a current price of ¥8.98 — trading 23.7% above its estimated fair value. The current Gross Margin % is 21.69%, which is 20% above median its 10-year median of 18.03 and 17.7% below the Consumer Packaged Goods industry median of 26.37. Shandong Huifa Foodstuff Co's overall GF Score™ is 62/100 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 Shandong Huifa Foodstuff Co (SHSE:603536), the current Gross Margin % is 21.69% 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 Shandong Huifa Foodstuff Co (SHSE:603536) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Huifa Foodstuff Co stock appears to be overvalued.
The current stock price of ¥8.98 is trading 23.7% above its estimated GF Value™ of ¥7.26.
GuruFocus considers Shandong Huifa Foodstuff Co to be Modestly Overvalued.
Key valuation signals for SHSE:603536:
Gross Margin %: 21.69% (20% above median its 10-year median of 18.03)
GF Value™: ¥7.26 vs. price of ¥8.98 (23.7% above fair value)
Industry Position: 17.7% below the Consumer Packaged Goods median (#1268 of 1910)
No single metric tells the full story. See the SHSE:603536 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Huifa Foodstuff Co Ltd is a China-based company engages in the research and development, production, and sales of pre-prepared food products cover various cuisines including local snacks, functional dishes, snacks, pastries, conditioning, western food, hot pot, etc. The food products offered by the company include onion rings, lotus root with meat, surimi, and cheese buns, among others. Its products and services are offered through brands such as Hui Fa, Ze Zhong, Hui Fa Fresh Kitchen, and Aisha Yippin, and service brands such as Runong Supply Chain, Hui Fa Kitchen, Hui Fa Cloud Kitchen, Hui Fa Mei Chu, Yilan Xiaodian, and Miloko.
62GF Score
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