Qi An Xin Technology Group (SHSE:688561) 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
Qi An Xin Technology Group had a gross margin of 53.99% 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.
Qi An Xin Technology Group Gross Margin % Related Terms
Qi An Xin Technology Group 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:688561 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Qi An Xin Technology Group'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.
Qi An Xin Technology Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Qi An Xin Technology Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Qi An Xin Technology Group'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.
Qi An Xin Technology Group (SHSE:688561) has a Gross Margin % of 53.99% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Qi An Xin Technology Group and its competitors. This is near median its historical median of 59.57. Over the past decade, Qi An Xin Technology Group's Gross Margin % has ranged from 50.32 to 74.91. According to the industry distribution chart, Qi An Xin Technology Group ranks #1029 out of 2677 companies in the Software industry, placing it in the top 38.4%.
Is Qi An Xin Technology Group's Gross Margin % too high?
Qi An Xin Technology Group's current Gross Margin % of 53.99% is near median its 10-year median of 59.57. Over the past 10 years, this metric has ranged from a low of 50.32 to a high of 74.91. The Software industry median Gross Margin % is 40.49. Qi An Xin Technology Group's value of 53.99% is 33.3% above this industry median. Based on the distribution chart, Qi An Xin Technology Group ranks #1029 out of 2677 companies in the Software industry, which is above the industry midpoint. Overall, Qi An Xin Technology Group has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Qi An Xin Technology Group's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Qi An Xin Technology Group ranks #1029 out of 2677 companies for Gross Margin %. This puts Qi An Xin Technology Group in the upper half of its industry. The industry median Gross Margin % is 40.49. Qi An Xin Technology Group's value of 53.99% is 33.3% above this benchmark. Historically, Qi An Xin Technology Group's own Gross Margin % has ranged from 50.32 to 74.91 over the past decade. While the company's 10-year median is 59.57 vs. the industry median of 40.49, Qi An Xin Technology Group 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 Software company?
The median Gross Margin % among Software companies is 40.49, based on 2,677 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. Qi An Xin Technology Group's current Gross Margin % of 53.99% is 33.3% 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 Qi An Xin Technology Group and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Qi An Xin Technology Group's current Gross Margin % is 53.99%, which is near median its own 10-year median of 59.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Qi An Xin Technology Group stock overvalued right now?
Based on GuruFocus' analysis, Qi An Xin Technology Group (SHSE:688561) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥32.82, compared to a current price of ¥23.52 — trading 28.3% below its estimated fair value. The current Gross Margin % is 53.99%, which is near median its 10-year median of 59.57 and 33.3% above the Software industry median of 40.49. Qi An Xin Technology Group's overall GF Score™ is 59/100 with 5 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 Qi An Xin Technology Group (SHSE:688561), the current Gross Margin % is 53.99% 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 Qi An Xin Technology Group (SHSE:688561) Overvalued in 2026?
Based on GuruFocus' analysis, Qi An Xin Technology Group stock appears to be undervalued.
The current stock price of ¥23.52 is trading 28.3% below its estimated GF Value™ of ¥32.82.
GuruFocus considers Qi An Xin Technology Group to be Modestly Undervalued.
Key valuation signals for SHSE:688561:
Gross Margin %: 53.99% (near median its 10-year median of 59.57)
GF Value™: ¥32.82 vs. price of ¥23.52 (28.3% below fair value)
Industry Position: 33.3% above the Software median (#1029 of 2677)
No single metric tells the full story. See the SHSE:688561 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Qi An Xin Technology Group Inc provides a new generation of enterprise-level network security products and services to government and corporate customers.
59GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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