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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.
Zhejiang Xinao TextilesSHSE:603889 -2.53%92 Gross Margin % is 20.38% as of Mar. 2026, which is 8% above its 10-year median of 18.90. GuruFocus rates SHSE:603889 with a GF Score™ of 92/100 and a GF Value™ of ¥6.64 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,023 Manufacturing - Apparel & Accessories companies, Zhejiang Xinao Textiles ranks worse than 64.42% on this metric.
SHSE:603889's Gross Margin % is ranked worse than 64.42% of 1023
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.34
vs SHSE:603889: 19.89
Zhejiang Xinao Textiles had a gross margin of 20.38% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Zhejiang Xinao Textiles was 4.00% per year.
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
Zhejiang Xinao Textiles had a gross margin of 20.38% 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.
Zhejiang Xinao Textiles Gross Margin % Related Terms
Zhejiang Xinao Textiles 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.
For the Textile Manufacturing subindustry, Zhejiang Xinao Textiles'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.
Zhejiang Xinao Textiles Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Zhejiang Xinao Textiles's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiang Xinao Textiles'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.
Zhejiang Xinao Textiles (SHSE:603889) has a Gross Margin % of 20.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhejiang Xinao Textiles and its competitors. This is near median its historical median of 18.90. Over the past decade, Zhejiang Xinao Textiles' Gross Margin % has ranged from 14.29 to 20.49. According to the industry distribution chart, Zhejiang Xinao Textiles ranks #659 out of 1023 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 64.4%.
Is Zhejiang Xinao Textiles' Gross Margin % too high?
Zhejiang Xinao Textiles' current Gross Margin % of 20.38% is near median its 10-year median of 18.90. Over the past 10 years, this metric has ranged from a low of 14.29 to a high of 20.49. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.34. Zhejiang Xinao Textiles' value of 20.38% is 28.1% below this industry median. Based on the distribution chart, Zhejiang Xinao Textiles ranks #659 out of 1023 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Zhejiang Xinao Textiles has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Xinao Textiles' Gross Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Zhejiang Xinao Textiles ranks #659 out of 1023 companies for Gross Margin %. This places Zhejiang Xinao Textiles in the lower half of its industry. The industry median Gross Margin % is 28.34. Zhejiang Xinao Textiles' value of 20.38% is 28.1% below this benchmark. Historically, Zhejiang Xinao Textiles' own Gross Margin % has ranged from 14.29 to 20.49 over the past decade. While the company's 10-year median is 18.90 vs. the industry median of 28.34, Zhejiang Xinao Textiles 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.34, based on 1,023 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. Zhejiang Xinao Textiles's current Gross Margin % of 20.38% is 28.1% 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 Zhejiang Xinao Textiles and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Xinao Textiles's current Gross Margin % is 20.38%, which is near median its own 10-year median of 18.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Xinao Textiles stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Xinao Textiles (SHSE:603889) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥6.64, compared to a current price of ¥5.39 — trading 18.8% below its estimated fair value. The current Gross Margin % is 20.38%, which is near median its 10-year median of 18.90 and 28.1% below the Manufacturing - Apparel & Accessories industry median of 28.34. Zhejiang Xinao Textiles' overall GF Score™ is 92/100 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 Zhejiang Xinao Textiles (SHSE:603889), the current Gross Margin % is 20.38% 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 Zhejiang Xinao Textiles (SHSE:603889) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Xinao Textiles stock appears to be undervalued.
The current stock price of ¥5.39 is trading 18.8% below its estimated GF Value™ of ¥6.64.
GuruFocus considers Zhejiang Xinao Textiles to be Modestly Undervalued.
Key valuation signals for SHSE:603889:
Gross Margin %: 20.38% (near median its 10-year median of 18.90)
GF Value™: ¥6.64 vs. price of ¥5.39 (18.8% below fair value)
Industry Position: 28.1% below the Manufacturing - Apparel & Accessories median (#659 of 1023)
No single metric tells the full story. See the SHSE:603889 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Xinao Textiles Inc along with its subsidiaries is engaged in research, development, production & sales of worsted yarn. The company's main products and services include: worsted, woolen pure wool, and wool blended yarns; woolen, worsted pure cashmere and cashmere blended yarns.
92GF Score
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