Taiwan Hon Chuan Enterprise CoTPE:9939 +1.18%88 Gross Margin % is 20.74% as of Dec. 2025, which is 1% below its 10-year median of 21.03. GuruFocus rates TPE:9939 with a GF Score™ of 88/100 and a GF Value™ of NT$147.23 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 379 Packaging & Containers companies, Taiwan Hon Chuan Enterprise Co ranks better than 52.24% on this metric.
TPE:9939's Gross Margin % is ranked better than 52.24% of 379
companies
in the Packaging & Containers industry
Industry Median: 21.28
vs TPE:9939: 22.25
Taiwan Hon Chuan Enterprise Co had a gross margin of 20.74% for the quarter that ended in Dec. 2025 => Competition eroding margins
Taiwan Hon Chuan Enterprise Co (TPE:9939) 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
Taiwan Hon Chuan Enterprise Co had a gross margin of 20.74% for the quarter that ended in Dec. 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.
Taiwan Hon Chuan Enterprise Co Gross Margin % Related Terms
Taiwan Hon Chuan Enterprise 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.
Taiwan Hon Chuan Enterprise Co Gross Margin % Chart
TPE:9939 vs SW, PKG, IP: Gross Margin % Comparison
For the Packaging & Containers subindustry, Taiwan Hon Chuan Enterprise 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.
Taiwan Hon Chuan Enterprise Co Gross Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Taiwan Hon Chuan Enterprise Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Taiwan Hon Chuan Enterprise 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.
Taiwan Hon Chuan Enterprise Co (TPE:9939) has a Gross Margin % of 20.74% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Taiwan Hon Chuan Enterprise Co and its competitors. This is near median its historical median of 21.03. Over the past decade, Taiwan Hon Chuan Enterprise Co's Gross Margin % has ranged from 17.68 to 22.97. According to the industry distribution chart, Taiwan Hon Chuan Enterprise Co ranks #181 out of 379 companies in the Packaging & Containers industry, placing it in the top 47.8%.
Is Taiwan Hon Chuan Enterprise Co's Gross Margin % too high?
Taiwan Hon Chuan Enterprise Co's current Gross Margin % of 20.74% is near median its 10-year median of 21.03. Over the past 10 years, this metric has ranged from a low of 17.68 to a high of 22.97. The Packaging & Containers industry median Gross Margin % is 21.28. Taiwan Hon Chuan Enterprise Co's value of 20.74% is 2.5% below this industry median. Based on the distribution chart, Taiwan Hon Chuan Enterprise Co ranks #181 out of 379 companies in the Packaging & Containers industry, which is above the industry midpoint. Overall, Taiwan Hon Chuan Enterprise Co has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Hon Chuan Enterprise Co's Gross Margin % compare to SW and PKG?
According to the Packaging & Containers industry distribution chart, Taiwan Hon Chuan Enterprise Co ranks #181 out of 379 companies for Gross Margin %. This puts Taiwan Hon Chuan Enterprise Co in the upper half of its industry. The industry median Gross Margin % is 21.28. Taiwan Hon Chuan Enterprise Co's value of 20.74% is 2.5% below this benchmark. Historically, Taiwan Hon Chuan Enterprise Co's own Gross Margin % has ranged from 17.68 to 22.97 over the past decade. While the company's 10-year median is 21.03 vs. the industry median of 21.28, Taiwan Hon Chuan Enterprise 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 Packaging & Containers company?
The median Gross Margin % among Packaging & Containers companies is 21.28, based on 379 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. Taiwan Hon Chuan Enterprise Co's current Gross Margin % of 20.74% is 2.5% 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 Taiwan Hon Chuan Enterprise Co and its competitors. For the Packaging & Containers industry, the median Gross Margin % is 21.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Hon Chuan Enterprise Co's current Gross Margin % is 20.74%, which is near median its own 10-year median of 21.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Hon Chuan Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Hon Chuan Enterprise Co (TPE:9939) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$147.23, compared to a current price of NT$128.50 — trading 12.7% below its estimated fair value. The current Gross Margin % is 20.74%, which is near median its 10-year median of 21.03 and 2.5% below the Packaging & Containers industry median of 21.28. Taiwan Hon Chuan Enterprise Co's overall GF Score™ is 88/100 with 4 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 Taiwan Hon Chuan Enterprise Co (TPE:9939), the current Gross Margin % is 20.74% as of Dec. 2025. 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 Taiwan Hon Chuan Enterprise Co (TPE:9939) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Hon Chuan Enterprise Co stock appears to be undervalued.
The current stock price of NT$128.50 is trading 12.7% below its estimated GF Value™ of NT$147.23.
GuruFocus considers Taiwan Hon Chuan Enterprise Co to be Modestly Undervalued.
Key valuation signals for TPE:9939:
Gross Margin %: 20.74% (near median its 10-year median of 21.03)
GF Value™: NT$147.23 vs. price of NT$128.50 (12.7% below fair value)
Industry Position: 2.5% below the Packaging & Containers median (#181 of 379)
No single metric tells the full story. See the TPE:9939 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Hon Chuan Enterprise Co Business Description
Taiwan Hon Chuan Enterprise Co Ltd manufactures and sells a variety of packaging products. Its primary product categories include plastic and aluminum caps used for beverages and can liners, polyethylene terephthalate bottles used to produce water bottles, and labels for consumer products. The Group also sells tobacco and liquor packaging, as well as cigarette filters and paper. In addition, Taiwan Hon Chuan sells packaging equipment used to produce caps, bottles, labels, and fill bottles. Its reportable segments are: Foreign Subsidiaries, which generate the maximum revenue, and Domestic. Geographically, the Group generates maximum revenue from its customers in Taiwan, followed by China, Southeast Asia, and other regions.
88GF Score
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