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Hong Kong Technology Venture Co (FRA:XHN1) 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
Hong Kong Technology Venture Co had a gross margin of 54.89% 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.
Hong Kong Technology Venture Co Gross Margin % Related Terms
Hong Kong Technology Venture 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.
Hong Kong Technology Venture Co Gross Margin % Chart
FRA:XHN1 vs AMZN, BABA, PDD: Gross Margin % Comparison
For the Internet Retail subindustry, Hong Kong Technology Venture 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.
Hong Kong Technology Venture Co Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Hong Kong Technology Venture Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hong Kong Technology Venture 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.
Hong Kong Technology Venture Co (FRA:XHN1) has a Gross Margin % of 54.89% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hong Kong Technology Venture Co and its competitors. This is 11% above median its historical median of 49.42. Over the past decade, Hong Kong Technology Venture Co's Gross Margin % has ranged from 25.01 to 54.84. According to the industry distribution chart, Hong Kong Technology Venture Co ranks #223 out of 1112 companies in the Retail - Cyclical industry, placing it in the top 20.1%.
Is Hong Kong Technology Venture Co's Gross Margin % too high?
Hong Kong Technology Venture Co's current Gross Margin % of 54.89% is 11% above median its 10-year median of 49.42. Over the past 10 years, this metric has ranged from a low of 25.01 to a high of 54.84. The Retail - Cyclical industry median Gross Margin % is 36.24. Hong Kong Technology Venture Co's value of 54.89% is 51.5% above this industry median. Based on the distribution chart, Hong Kong Technology Venture Co ranks #223 out of 1112 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Hong Kong Technology Venture Co has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does Hong Kong Technology Venture Co's Gross Margin % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Hong Kong Technology Venture Co ranks #223 out of 1112 companies for Gross Margin %. This places Hong Kong Technology Venture Co in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.24. Hong Kong Technology Venture Co's value of 54.89% is 51.5% above this benchmark. Historically, Hong Kong Technology Venture Co's own Gross Margin % has ranged from 25.01 to 54.84 over the past decade. While the company's 10-year median is 49.42 vs. the industry median of 36.24, Hong Kong Technology Venture Co 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.24, based on 1,112 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. Hong Kong Technology Venture Co's current Gross Margin % of 54.89% is 51.5% 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 Hong Kong Technology Venture Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Kong Technology Venture Co's current Gross Margin % is 54.89%, which is 11% above median its own 10-year median of 49.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Kong Technology Venture Co stock overvalued right now?
Hong Kong Technology Venture Co (FRA:XHN1) has a current Gross Margin % of 54.89%. The stock's GF Value™ is €0.22, compared to a current price of €0.11 — trading 48.2% below its estimated fair value. The current Gross Margin % is 54.89%, which is 11% above median its 10-year median of 49.42 and 51.5% above the Retail - Cyclical industry median of 36.24. Hong Kong Technology Venture Co's overall GF Score™ is 58/100 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 Hong Kong Technology Venture Co (FRA:XHN1), the current Gross Margin % is 54.89% 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 Hong Kong Technology Venture Co (FRA:XHN1) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Kong Technology Venture Co stock appears to be undervalued.
The current stock price of €0.11 is trading 48.2% below its estimated GF Value™ of €0.22.
Key valuation signals for FRA:XHN1:
Gross Margin %: 54.89% (11% above median its 10-year median of 49.42)
GF Value™: €0.22 vs. price of €0.11 (48.2% below fair value)
Industry Position: 51.5% above the Retail - Cyclical median (#223 of 1112)
No single metric tells the full story. See the FRA:XHN1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Kong Technology Venture Co Business Description
Hong Kong Technology Venture Co Ltd is included in the business of Ecommerce business which cover end-to end online shopping platform operation (including fulfillment and logistics), multimedia production and other related services; and New venture projects performing research and development activities on technologies, and operating business by adopting the technologies globally; and research, development and provision of technology solutions as a service including end-to-end digital retailing and retail store automation. The company has two reporting segments: Hong Kong Ecommerce business and New Ventures and Technology business, out of which the Hong Kong Ecommerce business derives the maximum revenue.
58GF Score
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