Hengyuan Refining Co BhdXKLS:4324 +0.97%59 Gross Margin % is 9.19% as of Mar. 2026, which is 397% above its 10-year median of 1.85. GuruFocus rates XKLS:4324 with a GF Score™ of 59/100 and a GF Value™ of RM1.19 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 870 Oil & Gas companies, Hengyuan Refining Co Bhd ranks worse than 87.24% on this metric.
Hengyuan Refining Co Bhd (XKLS:4324) 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
Hengyuan Refining Co Bhd had a gross margin of 9.19% for the quarter that ended in Mar. 2026 => No sustainable 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.
Hengyuan Refining Co Bhd Gross Margin % Related Terms
Hengyuan Refining Co Bhd 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.
XKLS:4324 vs VLO, MPC, PSX: Gross Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Hengyuan Refining Co Bhd'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.
Hengyuan Refining Co Bhd Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hengyuan Refining Co Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hengyuan Refining Co Bhd'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.
Hengyuan Refining Co Bhd (XKLS:4324) has a Gross Margin % of 9.19% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hengyuan Refining Co Bhd and its competitors. This is 397% above median its historical median of 1.85. According to the industry distribution chart, Hengyuan Refining Co Bhd ranks #759 out of 870 companies in the Oil & Gas industry, placing it in the top 87.2%.
Is Hengyuan Refining Co Bhd's Gross Margin % too high?
Hengyuan Refining Co Bhd's current Gross Margin % of 9.19% is 397% above median its 10-year median of 1.85. The Oil & Gas industry median Gross Margin % is 25.62. Hengyuan Refining Co Bhd's value of 9.19% is 64.1% below this industry median. Based on the distribution chart, Hengyuan Refining Co Bhd ranks #759 out of 870 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Hengyuan Refining Co Bhd has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hengyuan Refining Co Bhd's Gross Margin % compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Hengyuan Refining Co Bhd ranks #759 out of 870 companies for Gross Margin %. This places Hengyuan Refining Co Bhd in the lower half of its industry. The industry median Gross Margin % is 25.62. Hengyuan Refining Co Bhd's value of 9.19% is 64.1% below this benchmark. While the company's 10-year median is 1.85 vs. the industry median of 25.62, Hengyuan Refining Co Bhd 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 an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.62, based on 870 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. Hengyuan Refining Co Bhd's current Gross Margin % of 9.19% is 64.1% 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 Hengyuan Refining Co Bhd and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengyuan Refining Co Bhd's current Gross Margin % is 9.19%, which is 397% above median its own 10-year median of 1.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengyuan Refining Co Bhd stock overvalued right now?
Based on GuruFocus' analysis, Hengyuan Refining Co Bhd (XKLS:4324) is currently considered Modestly Undervalued. The stock's GF Value™ is RM1.19, compared to a current price of RM1.04 — trading 12.6% below its estimated fair value. The current Gross Margin % is 9.19%, which is 397% above median its 10-year median of 1.85 and 64.1% below the Oil & Gas industry median of 25.62. Hengyuan Refining Co Bhd's overall GF Score™ is 59/100 with 2 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 Hengyuan Refining Co Bhd (XKLS:4324), the current Gross Margin % is 9.19% 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 Hengyuan Refining Co Bhd (XKLS:4324) Overvalued in 2026?
Based on GuruFocus' analysis, Hengyuan Refining Co Bhd stock appears to be undervalued.
The current stock price of RM1.04 is trading 12.6% below its estimated GF Value™ of RM1.19.
GuruFocus considers Hengyuan Refining Co Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:4324:
Gross Margin %: 9.19% (397% above median its 10-year median of 1.85)
GF Value™: RM1.19 vs. price of RM1.04 (12.6% below fair value)
Industry Position: 64.1% below the Oil & Gas median (#759 of 870)
No single metric tells the full story. See the XKLS:4324 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hengyuan Refining Co Bhd is engaged in the refining and manufacturing of petroleum products in Malaysia. The company's operating units in its refinery consist of two crude distillers, a long residue catalytic cracker, two naptha treaters and a merox plant, one kerosene Merox plant, one platformer, two hydro-processing units, a Hydrogen Manufacturing Unit (HMU) and a sulphur recovery unit. Its product portfolio consists of liquefied petroleum gas (LPG), gasoline, diesel, aviation fuel, fuel oil components, and chemical feedstocks like light naphtha and propylene.
59GF Score
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