China Resources Microelectronics (SHSE:688396) 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
China Resources Microelectronics had a gross margin of 25.48% 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.
China Resources Microelectronics Gross Margin % Related Terms
China Resources 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.
China Resources Microelectronics Gross Margin % Chart
SHSE:688396 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, China Resources 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.
China Resources Microelectronics Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, China Resources Microelectronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Resources 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.
China Resources Microelectronics (SHSE:688396) has a Gross Margin % of 25.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Resources Microelectronics and its competitors. This is near median its historical median of 26.79. Over the past decade, China Resources Microelectronics' Gross Margin % has ranged from 14.49 to 36.71. According to the industry distribution chart, China Resources Microelectronics ranks #572 out of 1009 companies in the Semiconductors industry, placing it in the top 56.7%.
Is China Resources Microelectronics' Gross Margin % too high?
China Resources Microelectronics' current Gross Margin % of 25.48% is near median its 10-year median of 26.79. Over the past 10 years, this metric has ranged from a low of 14.49 to a high of 36.71. The Semiconductors industry median Gross Margin % is 29.61. China Resources Microelectronics' value of 25.48% is 13.9% below this industry median. Based on the distribution chart, China Resources Microelectronics ranks #572 out of 1009 companies in the Semiconductors industry, which is below the industry midpoint. Overall, China Resources Microelectronics has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Resources Microelectronics' Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, China Resources Microelectronics ranks #572 out of 1009 companies for Gross Margin %. This places China Resources Microelectronics in the lower half of its industry. The industry median Gross Margin % is 29.61. China Resources Microelectronics' value of 25.48% is 13.9% below this benchmark. Historically, China Resources Microelectronics' own Gross Margin % has ranged from 14.49 to 36.71 over the past decade. While the company's 10-year median is 26.79 vs. the industry median of 29.61, China Resources Microelectronics 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 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. China Resources Microelectronics's current Gross Margin % of 25.48% is 13.9% 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 China Resources 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. China Resources Microelectronics's current Gross Margin % is 25.48%, which is near median its own 10-year median of 26.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Resources Microelectronics stock overvalued right now?
Based on GuruFocus' analysis, China Resources Microelectronics (SHSE:688396) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥56.08, compared to a current price of ¥83.60 — trading 49.1% above its estimated fair value. The current Gross Margin % is 25.48%, which is near median its 10-year median of 26.79 and 13.9% below the Semiconductors industry median of 29.61. China Resources Microelectronics' overall GF Score™ is 85/100 with 9 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 China Resources Microelectronics (SHSE:688396), the current Gross Margin % is 25.48% 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 China Resources Microelectronics (SHSE:688396) Overvalued in 2026?
Based on GuruFocus' analysis, China Resources Microelectronics stock appears to be overvalued.
The current stock price of ¥83.60 is trading 49.1% above its estimated GF Value™ of ¥56.08.
GuruFocus considers China Resources Microelectronics to be Significantly Overvalued.
Key valuation signals for SHSE:688396:
Gross Margin %: 25.48% (near median its 10-year median of 26.79)
GF Value™: ¥56.08 vs. price of ¥83.60 (49.1% above fair value)
Industry Position: 13.9% below the Semiconductors median (#572 of 1009)
No single metric tells the full story. See the SHSE:688396 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Resources Microelectronics Business Description
China Resources Microelectronics Ltd is engaged in designing, producing, and selling power semiconductors, smart sensors and smart control products, as well as providing open wafer manufacturing, packaging and testing, and other manufacturing services.
85GF Score
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