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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Chengdu Hongqi Chain CoSZSE:002697 -0.20%76 Gross Margin % is 28.75% as of Jun. 2026, which is 2% below its 10-year median of 29.41. GuruFocus rates SZSE:002697 with a GF Score™ of 76/100 and a GF Value™ of ¥5.20 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,114 Retail - Cyclical companies, Chengdu Hongqi Chain Co ranks worse than 63.02% on this metric.
SZSE:002697's Gross Margin % is ranked worse than 63.02% of 1114
companies
in the Retail - Cyclical industry
Industry Median: 36.27
vs SZSE:002697: 29.48
Chengdu Hongqi Chain Co had a gross margin of 28.75% for the quarter that ended in Jun. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Chengdu Hongqi Chain Co was 0.00% per year.
Chengdu Hongqi Chain Co (SZSE:002697) 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
Chengdu Hongqi Chain Co had a gross margin of 28.75% for the quarter that ended in Jun. 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.
Chengdu Hongqi Chain Co Gross Margin % Related Terms
Chengdu Hongqi Chain 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.
For the Department Stores subindustry, Chengdu Hongqi Chain 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.
Chengdu Hongqi Chain Co Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Chengdu Hongqi Chain Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chengdu Hongqi Chain 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.
Chengdu Hongqi Chain Co (SZSE:002697) has a Gross Margin % of 28.75% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chengdu Hongqi Chain Co and its competitors. This is near median its historical median of 29.41. Over the past decade, Chengdu Hongqi Chain Co's Gross Margin % has ranged from 27.21 to 30.89. According to the industry distribution chart, Chengdu Hongqi Chain Co ranks #702 out of 1114 companies in the Retail - Cyclical industry, placing it in the top 63%.
Is Chengdu Hongqi Chain Co's Gross Margin % too high?
Chengdu Hongqi Chain Co's current Gross Margin % of 28.75% is near median its 10-year median of 29.41. Over the past 10 years, this metric has ranged from a low of 27.21 to a high of 30.89. The Retail - Cyclical industry median Gross Margin % is 36.27. Chengdu Hongqi Chain Co's value of 28.75% is 20.7% below this industry median. Based on the distribution chart, Chengdu Hongqi Chain Co ranks #702 out of 1114 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Chengdu Hongqi Chain Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chengdu Hongqi Chain Co's Gross Margin % compare to DDS?
According to the Retail - Cyclical industry distribution chart, Chengdu Hongqi Chain Co ranks #702 out of 1114 companies for Gross Margin %. This places Chengdu Hongqi Chain Co in the lower half of its industry. The industry median Gross Margin % is 36.27. Chengdu Hongqi Chain Co's value of 28.75% is 20.7% below this benchmark. Historically, Chengdu Hongqi Chain Co's own Gross Margin % has ranged from 27.21 to 30.89 over the past decade. While the company's 10-year median is 29.41 vs. the industry median of 36.27, Chengdu Hongqi Chain Co 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.27, based on 1,114 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. Chengdu Hongqi Chain Co's current Gross Margin % of 28.75% is 20.7% 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 Chengdu Hongqi Chain Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chengdu Hongqi Chain Co's current Gross Margin % is 28.75%, which is near median its own 10-year median of 29.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chengdu Hongqi Chain Co stock overvalued right now?
Based on GuruFocus' analysis, Chengdu Hongqi Chain Co (SZSE:002697) is currently considered Fairly Valued. The stock's GF Value™ is ¥5.20, compared to a current price of ¥4.92 — trading 5.4% below its estimated fair value. The current Gross Margin % is 28.75%, which is near median its 10-year median of 29.41 and 20.7% below the Retail - Cyclical industry median of 36.27. Chengdu Hongqi Chain Co's overall GF Score™ is 76/100 with 1 warning sign 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 Chengdu Hongqi Chain Co (SZSE:002697), the current Gross Margin % is 28.75% as of Jun. 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 Chengdu Hongqi Chain Co (SZSE:002697) Overvalued in 2026?
Based on GuruFocus' analysis, Chengdu Hongqi Chain Co stock appears to be undervalued.
The current stock price of ¥4.92 is trading 5.4% below its estimated GF Value™ of ¥5.20.
GuruFocus considers Chengdu Hongqi Chain Co to be Fairly Valued.
Key valuation signals for SZSE:002697:
Gross Margin %: 28.75% (near median its 10-year median of 29.41)
GF Value™: ¥5.20 vs. price of ¥4.92 (5.4% below fair value)
Industry Position: 20.7% below the Retail - Cyclical median (#702 of 1114)
No single metric tells the full story. See the SZSE:002697 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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