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China Unicom (Hong Kong)FRA:XCI 83 Gross Margin % is 63.57% as of Dec. 2025, which is 9% below its 10-year median of 69.64. GuruFocus rates FRA:XCI with a GF Score™ of 83/100 and a GF Value™ of €0.91. The stock has 3 warning signs investors should review. Among 339 Telecommunication Services companies, China Unicom (Hong Kong) ranks better than 78.76% on this metric.
FRA:XCI's Gross Margin % is ranked better than 78.76% of 339
companies
in the Telecommunication Services industry
Industry Median: 51.78
vs FRA:XCI: 68.72
China Unicom (Hong Kong) had a gross margin of 63.57% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Unicom (Hong Kong) was -0.70% per year.
China Unicom (Hong Kong) (FRA:XCI) 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 Unicom (Hong Kong) had a gross margin of 63.57% for the quarter that ended in Dec. 2025 => 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.
China Unicom (Hong Kong) Gross Margin % Related Terms
China Unicom (Hong Kong) 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 Telecom Services subindustry, China Unicom (Hong Kong)'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 Unicom (Hong Kong) Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Unicom (Hong Kong)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Unicom (Hong Kong)'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 Unicom (Hong Kong) (FRA:XCI) has a Gross Margin % of 63.57% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Unicom (Hong Kong) and its competitors. This is near median its historical median of 69.64. Over the past decade, China Unicom (Hong Kong)'s Gross Margin % has ranged from 60.95 to 71.54. According to the industry distribution chart, China Unicom (Hong Kong) ranks #72 out of 339 companies in the Telecommunication Services industry, placing it in the top 21.2%.
Is China Unicom (Hong Kong)'s Gross Margin % too high?
China Unicom (Hong Kong)'s current Gross Margin % of 63.57% is near median its 10-year median of 69.64. Over the past 10 years, this metric has ranged from a low of 60.95 to a high of 71.54. The Telecommunication Services industry median Gross Margin % is 51.78. China Unicom (Hong Kong)'s value of 63.57% is 22.8% above this industry median. Based on the distribution chart, China Unicom (Hong Kong) ranks #72 out of 339 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, China Unicom (Hong Kong) has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does China Unicom (Hong Kong)'s Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, China Unicom (Hong Kong) ranks #72 out of 339 companies for Gross Margin %. This places China Unicom (Hong Kong) in the top 21% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.78. China Unicom (Hong Kong)'s value of 63.57% is 22.8% above this benchmark. Historically, China Unicom (Hong Kong)'s own Gross Margin % has ranged from 60.95 to 71.54 over the past decade. While the company's 10-year median is 69.64 vs. the industry median of 51.78, China Unicom (Hong Kong) 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.78, based on 339 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 Unicom (Hong Kong)'s current Gross Margin % of 63.57% is 22.8% 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 China Unicom (Hong Kong) and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Unicom (Hong Kong)'s current Gross Margin % is 63.57%, which is near median its own 10-year median of 69.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Unicom (Hong Kong) stock overvalued right now?
China Unicom (Hong Kong) (FRA:XCI) has a current Gross Margin % of 63.57%. The stock's GF Value™ is €0.91, compared to a current price of €0.78 — trading 14.3% below its estimated fair value. The current Gross Margin % is 63.57%, which is near median its 10-year median of 69.64 and 22.8% above the Telecommunication Services industry median of 51.78. China Unicom (Hong Kong)'s overall GF Score™ is 83/100 with 3 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 Unicom (Hong Kong) (FRA:XCI), the current Gross Margin % is 63.57% 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 China Unicom (Hong Kong) (FRA:XCI) Overvalued in 2026?
Based on GuruFocus' analysis, China Unicom (Hong Kong) stock appears to be undervalued.
The current stock price of €0.78 is trading 14.3% below its estimated GF Value™ of €0.91.
Key valuation signals for FRA:XCI:
Gross Margin %: 63.57% (near median its 10-year median of 69.64)
GF Value™: €0.91 vs. price of €0.78 (14.3% below fair value)
Industry Position: 22.8% above the Telecommunication Services median (#72 of 339)
No single metric tells the full story. See the FRA:XCI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Unicom is the incumbent fixed-line operator in 10 northern Chinese provinces, as well as the third-largest wireless operator nationwide. As of June 2025, it had around 355 million billing wireless customers and over 125 million fixed-line subscribers. China Unicom also has a growing ICT business. We estimate it has the third largest internet data center business in China with 420,000 cabinets and its Cloud Service revenue is also showing strong growth. It has its own 4G network and shares the radio access function with China Telecom for its 5G network.
83GF Score
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