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Kowloon Development CoHKSE:00034 +3.93%75 Gross Margin % is 60.34% as of Dec. 2025, which is 12% above its 10-year median of 53.81. GuruFocus rates HKSE:00034 with a GF Score™ of 75/100 and a GF Value™ of HK$5.38 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,645 Real Estate companies, Kowloon Development Co ranks better than 67.05% on this metric.
Kowloon Development Co (HKSE:00034) 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
Kowloon Development Co had a gross margin of 60.34% 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.
Kowloon Development Co Gross Margin % Related Terms
Kowloon Development Co Gross Margin % Historical Data
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The historical data trend for Kowloon Development Co's Gross Margin % can be seen below:
* 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.
Kowloon Development Co Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, Kowloon Development 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.
Kowloon Development Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Kowloon Development Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kowloon Development 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.
Kowloon Development Co (HKSE:00034) has a Gross Margin % of 60.34% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kowloon Development Co and its competitors. This is 12% above median its historical median of 53.81. Over the past decade, Kowloon Development Co's Gross Margin % has ranged from 22.55 to 85.15. According to the industry distribution chart, Kowloon Development Co ranks #542 out of 1645 companies in the Real Estate industry, placing it in the top 32.9%.
Is Kowloon Development Co's Gross Margin % too high?
Kowloon Development Co's current Gross Margin % of 60.34% is 12% above median its 10-year median of 53.81. Over the past 10 years, this metric has ranged from a low of 22.55 to a high of 85.15. The Real Estate industry median Gross Margin % is 36.68. Kowloon Development Co's value of 60.34% is 64.5% above this industry median. Based on the distribution chart, Kowloon Development Co ranks #542 out of 1645 companies in the Real Estate industry, which is above the industry midpoint. Overall, Kowloon Development Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kowloon Development Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Kowloon Development Co ranks #542 out of 1645 companies for Gross Margin %. This puts Kowloon Development Co in the upper half of its industry. The industry median Gross Margin % is 36.68. Kowloon Development Co's value of 60.34% is 64.5% above this benchmark. Historically, Kowloon Development Co's own Gross Margin % has ranged from 22.55 to 85.15 over the past decade. While the company's 10-year median is 53.81 vs. the industry median of 36.68, Kowloon Development 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.68, based on 1,645 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. Kowloon Development Co's current Gross Margin % of 60.34% is 64.5% 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 Kowloon Development Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kowloon Development Co's current Gross Margin % is 60.34%, which is 12% above median its own 10-year median of 53.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kowloon Development Co stock overvalued right now?
Based on GuruFocus' analysis, Kowloon Development Co (HKSE:00034) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$5.38, compared to a current price of HK$4.50 — trading 16.4% below its estimated fair value. The current Gross Margin % is 60.34%, which is 12% above median its 10-year median of 53.81 and 64.5% above the Real Estate industry median of 36.68. Kowloon Development Co's overall GF Score™ is 75/100 with 5 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 Kowloon Development Co (HKSE:00034), the current Gross Margin % is 60.34% 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 Kowloon Development Co (HKSE:00034) Overvalued in 2026?
Based on GuruFocus' analysis, Kowloon Development Co stock appears to be undervalued.
The current stock price of HK$4.50 is trading 16.4% below its estimated GF Value™ of HK$5.38.
GuruFocus considers Kowloon Development Co to be Modestly Undervalued.
Key valuation signals for HKSE:00034:
Gross Margin %: 60.34% (12% above median its 10-year median of 53.81)
GF Value™: HK$5.38 vs. price of HK$4.50 (16.4% below fair value)
Industry Position: 64.5% above the Real Estate median (#542 of 1645)
No single metric tells the full story. See the HKSE:00034 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kowloon Development Co Ltd is an investment holding company. It operates in three segments: Property development, which includes the development and sale of properties and interests in property development; Property investment segment includes leasing of properties to generate rental income and to gain from the appreciation in the properties' values in the long term; and Other businesses segment, which includes the financial investments, the provision of financial services, the provision of property management services and treasury operations. The company generates the majority of its revenue from the sale of properties. Its geographical segments are Hong Kong, which accounts for the majority of revenue; Mainland China; and Others.
75GF Score
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