SHSE:688268's Gross Margin % is ranked better than 72.7% of 1524
companies
in the Chemicals industry
Industry Median: 22.24
vs SHSE:688268: 32.07
Guangdong Huate Gas Co had a gross margin of 33.70% for the quarter that ended in Mar. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Guangdong Huate Gas Co was 0.20% per year.
Guangdong Huate Gas Co Gross Margin % Historical Data
The historical data trend for Guangdong Huate Gas Co's Gross Margin % can be seen below:
* 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.
Competitive Comparison of Guangdong Huate Gas Co's Gross Margin %
For the Specialty Chemicals subindustry, Guangdong Huate Gas 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.
Guangdong Huate Gas Co's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Guangdong Huate Gas Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Guangdong Huate Gas 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.
Guangdong Huate Gas Co (SHSE:688268) 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
Guangdong Huate Gas Co had a gross margin of 33.70% for the quarter that ended in Mar. 2025 => 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.
Guangdong Huate Gas Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Guangdong Huate Gas Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Guangdong Huate Gas Co Ltd is engaged in research, development and production of gas and gas equipment, covering industrial gases, electronic gases, electric light gases, ultra-high pure gases, calibration gases, laser gases, medical gases, and food grade gases. Its equipments include LGC, vaporizer, LNG emergency skids, and installation of equipment for the application of ultra high pure gases and industrial gases.
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