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SHSE:688130's Gross Margin % is ranked better than 83.58% of 1011
companies
in the Semiconductors industry
Industry Median: 29.61
vs SHSE:688130: 50.52
Hangzhou SDIC Microelectronics had a gross margin of 50.60% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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
Hangzhou SDIC Microelectronics had a gross margin of 50.60% 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.
Hangzhou SDIC Microelectronics Gross Margin % Related Terms
Hangzhou SDIC Microelectronics 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:688130 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Hangzhou SDIC Microelectronics'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.
Hangzhou SDIC Microelectronics Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Hangzhou SDIC Microelectronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hangzhou SDIC Microelectronics'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.
Hangzhou SDIC Microelectronics (SHSE:688130) has a Gross Margin % of 50.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hangzhou SDIC Microelectronics and its competitors. This is 20% below median its historical median of 63.12. Over the past decade, Hangzhou SDIC Microelectronics' Gross Margin % has ranged from 50.52 to 73.09. According to the industry distribution chart, Hangzhou SDIC Microelectronics ranks #166 out of 1011 companies in the Semiconductors industry, placing it in the top 16.4%.
Is Hangzhou SDIC Microelectronics' Gross Margin % too high?
Hangzhou SDIC Microelectronics' current Gross Margin % of 50.60% is 20% below median its 10-year median of 63.12. Over the past 10 years, this metric has ranged from a low of 50.52 to a high of 73.09. The Semiconductors industry median Gross Margin % is 29.61. Hangzhou SDIC Microelectronics' value of 50.60% is 70.9% above this industry median. Based on the distribution chart, Hangzhou SDIC Microelectronics ranks #166 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Hangzhou SDIC Microelectronics has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hangzhou SDIC Microelectronics' Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Hangzhou SDIC Microelectronics ranks #166 out of 1011 companies for Gross Margin %. This places Hangzhou SDIC Microelectronics in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Hangzhou SDIC Microelectronics' value of 50.60% is 70.9% above this benchmark. Historically, Hangzhou SDIC Microelectronics' own Gross Margin % has ranged from 50.52 to 73.09 over the past decade. While the company's 10-year median is 63.12 vs. the industry median of 29.61, Hangzhou SDIC Microelectronics 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 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. Hangzhou SDIC Microelectronics's current Gross Margin % of 50.60% is 70.9% 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 Hangzhou SDIC Microelectronics and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou SDIC Microelectronics's current Gross Margin % is 50.60%, which is 20% below median its own 10-year median of 63.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou SDIC Microelectronics stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou SDIC Microelectronics (SHSE:688130) is currently considered Possible Value Trap. The stock's GF Value™ is ¥26.00, compared to a current price of ¥17.61 — trading 32.3% below its estimated fair value. The current Gross Margin % is 50.60%, which is 20% below median its 10-year median of 63.12 and 70.9% above the Semiconductors industry median of 29.61. Hangzhou SDIC Microelectronics' overall GF Score™ is 71/100 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 Hangzhou SDIC Microelectronics (SHSE:688130), the current Gross Margin % is 50.60% 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 Hangzhou SDIC Microelectronics (SHSE:688130) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou SDIC Microelectronics stock appears to be undervalued.
The current stock price of ¥17.61 is trading 32.3% below its estimated GF Value™ of ¥26.00.
GuruFocus considers Hangzhou SDIC Microelectronics to be Possible Value Trap.
Key valuation signals for SHSE:688130:
Gross Margin %: 50.60% (20% below median its 10-year median of 63.12)
GF Value™: ¥26.00 vs. price of ¥17.61 (32.3% below fair value)
Industry Position: 70.9% above the Semiconductors median (#166 of 1011)
No single metric tells the full story. See the SHSE:688130 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou SDIC Microelectronics Business Description
Hangzhou SDIC Microelectronics Inc is engaged in the research and development, and sales of high-performance analog and digital-analog hybrid integrated circuits. Its main products include medical and healthcare SoC chips, industrial control and instrumentation chips, and intelligent sensing SoC chips, which are widely used in numerous fields such as medical and healthcare, pressure measurement, industrial control, instrumentation, and smart homes.
71GF Score
Get the complete analysis for SHSE:688130
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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