Xiamen Leading Optics CoSHSE:605118 -3.22%88 Gross Margin % is 48.99% as of Mar. 2026, which is 2% below its 10-year median of 50.09. GuruFocus rates SHSE:605118 with a GF Score™ of 88/100 and a GF Value™ of ¥28.00 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,457 Hardware companies, Xiamen Leading Optics Co ranks better than 86.57% on this metric.
SHSE:605118's Gross Margin % is ranked better than 86.57% of 2457
companies
in the Hardware industry
Industry Median: 24.54
vs SHSE:605118: 49.06
Xiamen Leading Optics Co had a gross margin of 48.99% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Xiamen Leading Optics Co was -0.60% per year.
Xiamen Leading Optics Co (SHSE:605118) 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
Xiamen Leading Optics Co had a gross margin of 48.99% 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.
Xiamen Leading Optics Co Gross Margin % Related Terms
Xiamen Leading Optics 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:605118 vs APH, GLW: Gross Margin % Comparison
For the Electronic Components subindustry, Xiamen Leading Optics 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.
Xiamen Leading Optics Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Xiamen Leading Optics Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Xiamen Leading Optics 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.
Xiamen Leading Optics Co (SHSE:605118) has a Gross Margin % of 48.99% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Xiamen Leading Optics Co and its competitors. This is near median its historical median of 50.09. Over the past decade, Xiamen Leading Optics Co's Gross Margin % has ranged from 40.40 to 54.40. According to the industry distribution chart, Xiamen Leading Optics Co ranks #330 out of 2457 companies in the Hardware industry, placing it in the top 13.4%.
Is Xiamen Leading Optics Co's Gross Margin % too high?
Xiamen Leading Optics Co's current Gross Margin % of 48.99% is near median its 10-year median of 50.09. Over the past 10 years, this metric has ranged from a low of 40.40 to a high of 54.40. The Hardware industry median Gross Margin % is 24.54. Xiamen Leading Optics Co's value of 48.99% is 99.6% above this industry median. Based on the distribution chart, Xiamen Leading Optics Co ranks #330 out of 2457 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Xiamen Leading Optics Co has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Leading Optics Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Xiamen Leading Optics Co ranks #330 out of 2457 companies for Gross Margin %. This places Xiamen Leading Optics Co in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.54. Xiamen Leading Optics Co's value of 48.99% is 99.6% above this benchmark. Historically, Xiamen Leading Optics Co's own Gross Margin % has ranged from 40.40 to 54.40 over the past decade. While the company's 10-year median is 50.09 vs. the industry median of 24.54, Xiamen Leading Optics 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 24.54, based on 2,457 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. Xiamen Leading Optics Co's current Gross Margin % of 48.99% is 99.6% 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 Xiamen Leading Optics Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Leading Optics Co's current Gross Margin % is 48.99%, which is near median its own 10-year median of 50.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Leading Optics Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Leading Optics Co (SHSE:605118) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥28.00, compared to a current price of ¥33.62 — trading 20.1% above its estimated fair value. The current Gross Margin % is 48.99%, which is near median its 10-year median of 50.09 and 99.6% above the Hardware industry median of 24.54. Xiamen Leading Optics Co's overall GF Score™ is 88/100 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 Xiamen Leading Optics Co (SHSE:605118), the current Gross Margin % is 48.99% 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 Xiamen Leading Optics Co (SHSE:605118) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen Leading Optics Co stock appears to be overvalued.
The current stock price of ¥33.62 is trading 20.1% above its estimated GF Value™ of ¥28.00.
GuruFocus considers Xiamen Leading Optics Co to be Modestly Overvalued.
Key valuation signals for SHSE:605118:
Gross Margin %: 48.99% (near median its 10-year median of 50.09)
GF Value™: ¥28.00 vs. price of ¥33.62 (20.1% above fair value)
Industry Position: 99.6% above the Hardware median (#330 of 2457)
No single metric tells the full story. See the SHSE:605118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiamen Leading Optics Co Ltd is engaged in design, production and sales of optical lenses. The company's products include Surveillance Lens; Automotives Lens; Machine Vision Lens; ITS Lens; Low Distortion Lens; Consumer Imaging; and Panoramic Lens. Its products are used in multiple fields of application including security surveillance, medical and biological studies and researches, intelligent traffic systems, video conference, intelligent home security, sports camera and many more.
88GF Score
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