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Jinan Shengquan Group Share Holding Co (SHSE:605589) 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
Jinan Shengquan Group Share Holding Co had a gross margin of 26.25% 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.
Jinan Shengquan Group Share Holding Co Gross Margin % Related Terms
Jinan Shengquan Group Share Holding 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.
Jinan Shengquan Group Share Holding Co Gross Margin % Chart
Jinan Shengquan Group Share Holding Co Annual Data
For the Chemicals subindustry, Jinan Shengquan Group Share Holding 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.
Jinan Shengquan Group Share Holding Co Gross Margin % vs Chemicals 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.
Jinan Shengquan Group Share Holding Co (SHSE:605589) has a Gross Margin % of 26.25% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Jinan Shengquan Group Share Holding Co and its competitors. This is near median its historical median of 26.99. Over the past decade, Jinan Shengquan Group Share Holding Co's Gross Margin % has ranged from 21.06 to 37.23. According to the industry distribution chart, Jinan Shengquan Group Share Holding Co ranks #707 out of 1562 companies in the Chemicals industry, placing it in the top 45.3%.
Is Jinan Shengquan Group Share Holding Co's Gross Margin % too high?
Jinan Shengquan Group Share Holding Co's current Gross Margin % of 26.25% is near median its 10-year median of 26.99. Over the past 10 years, this metric has ranged from a low of 21.06 to a high of 37.23. The Chemicals industry median Gross Margin % is 23.66. Jinan Shengquan Group Share Holding Co's value of 26.25% is 10.9% above this industry median. Based on the distribution chart, Jinan Shengquan Group Share Holding Co ranks #707 out of 1562 companies in the Chemicals industry, which is above the industry midpoint. Overall, Jinan Shengquan Group Share Holding Co has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jinan Shengquan Group Share Holding Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Jinan Shengquan Group Share Holding Co ranks #707 out of 1562 companies for Gross Margin %. This puts Jinan Shengquan Group Share Holding Co in the upper half of its industry. The industry median Gross Margin % is 23.66. Jinan Shengquan Group Share Holding Co's value of 26.25% is 10.9% above this benchmark. Historically, Jinan Shengquan Group Share Holding Co's own Gross Margin % has ranged from 21.06 to 37.23 over the past decade. While the company's 10-year median is 26.99 vs. the industry median of 23.66, Jinan Shengquan Group Share Holding 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 23.66, based on 1,562 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. Jinan Shengquan Group Share Holding Co's current Gross Margin % of 26.25% is 10.9% 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 Jinan Shengquan Group Share Holding Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jinan Shengquan Group Share Holding Co's current Gross Margin % is 26.25%, which is near median its own 10-year median of 26.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jinan Shengquan Group Share Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Jinan Shengquan Group Share Holding Co (SHSE:605589) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥27.77, compared to a current price of ¥42.48 — trading 53% above its estimated fair value. The current Gross Margin % is 26.25%, which is near median its 10-year median of 26.99 and 10.9% above the Chemicals industry median of 23.66. Jinan Shengquan Group Share Holding Co's overall GF Score™ is 76/100 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 Jinan Shengquan Group Share Holding Co (SHSE:605589), the current Gross Margin % is 26.25% 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 Jinan Shengquan Group Share Holding Co (SHSE:605589) Overvalued in 2026?
Based on GuruFocus' analysis, Jinan Shengquan Group Share Holding Co stock appears to be overvalued.
The current stock price of ¥42.48 is trading 53% above its estimated GF Value™ of ¥27.77.
GuruFocus considers Jinan Shengquan Group Share Holding Co to be Significantly Overvalued.
Key valuation signals for SHSE:605589:
Gross Margin %: 26.25% (near median its 10-year median of 26.99)
GF Value™: ¥27.77 vs. price of ¥42.48 (53% above fair value)
Industry Position: 10.9% above the Chemicals median (#707 of 1562)
No single metric tells the full story. See the SHSE:605589 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jinan Shengquan Group Share Holding Co Ltd is engaged in the research and development, production and sales of synthetic resin and composite materials, biomass chemical materials and related products.
76GF Score
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