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Hon Kwok Land Investment Co (HKSE:00160) 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
Hon Kwok Land Investment Co had a gross margin of 45.84% for the quarter that ended in Mar. 2026 => 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.
Hon Kwok Land Investment Co Gross Margin % Related Terms
Hon Kwok Land Investment 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.
Hon Kwok Land Investment Co Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, Hon Kwok Land Investment 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.
Hon Kwok Land Investment Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Hon Kwok Land Investment Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hon Kwok Land Investment 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.
Hon Kwok Land Investment Co (HKSE:00160) has a Gross Margin % of 45.84% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hon Kwok Land Investment Co and its competitors. This is 11% below median its historical median of 51.77. Over the past decade, Hon Kwok Land Investment Co's Gross Margin % has ranged from 40.25 to 58.76. According to the industry distribution chart, Hon Kwok Land Investment Co ranks #565 out of 1640 companies in the Real Estate industry, placing it in the top 34.5%.
Is Hon Kwok Land Investment Co's Gross Margin % too high?
Hon Kwok Land Investment Co's current Gross Margin % of 45.84% is 11% below median its 10-year median of 51.77. Over the past 10 years, this metric has ranged from a low of 40.25 to a high of 58.76. The Real Estate industry median Gross Margin % is 36.29. Hon Kwok Land Investment Co's value of 45.84% is 26.3% above this industry median. Based on the distribution chart, Hon Kwok Land Investment Co ranks #565 out of 1640 companies in the Real Estate industry, which is above the industry midpoint. Overall, Hon Kwok Land Investment Co has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hon Kwok Land Investment Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Hon Kwok Land Investment Co ranks #565 out of 1640 companies for Gross Margin %. This puts Hon Kwok Land Investment Co in the upper half of its industry. The industry median Gross Margin % is 36.29. Hon Kwok Land Investment Co's value of 45.84% is 26.3% above this benchmark. Historically, Hon Kwok Land Investment Co's own Gross Margin % has ranged from 40.25 to 58.76 over the past decade. While the company's 10-year median is 51.77 vs. the industry median of 36.29, Hon Kwok Land Investment 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 36.29, based on 1,640 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. Hon Kwok Land Investment Co's current Gross Margin % of 45.84% is 26.3% 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 Hon Kwok Land Investment Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hon Kwok Land Investment Co's current Gross Margin % is 45.84%, which is 11% below median its own 10-year median of 51.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hon Kwok Land Investment Co stock overvalued right now?
Based on GuruFocus' analysis, Hon Kwok Land Investment Co (HKSE:00160) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.05, compared to a current price of HK$0.69 — trading 34.8% below its estimated fair value. The current Gross Margin % is 45.84%, which is 11% below median its 10-year median of 51.77 and 26.3% above the Real Estate industry median of 36.29. Hon Kwok Land Investment Co's overall GF Score™ is 56/100 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 Hon Kwok Land Investment Co (HKSE:00160), the current Gross Margin % is 45.84% 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 Hon Kwok Land Investment Co (HKSE:00160) Overvalued in 2026?
Based on GuruFocus' analysis, Hon Kwok Land Investment Co stock appears to be undervalued.
The current stock price of HK$0.69 is trading 34.8% below its estimated GF Value™ of HK$1.05.
GuruFocus considers Hon Kwok Land Investment Co to be Possible Value Trap.
Key valuation signals for HKSE:00160:
Gross Margin %: 45.84% (11% below median its 10-year median of 51.77)
GF Value™: HK$1.05 vs. price of HK$0.69 (34.8% below fair value)
Industry Position: 26.3% above the Real Estate median (#565 of 1640)
No single metric tells the full story. See the HKSE:00160 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hon Kwok Land Investment Co Ltd is a Hong Kong-based investment holding company. Along with its subsidiaries, it operates in the following reportable segments: Property development, Property investment, and Property, carpark management, and others. It generates maximum revenue from the Property development segment, which develops residential and commercial properties for sale. Geographically, it has a business presence in Hong Kong, Japan, and Mainland China, of which a majority of its revenue is generated from Mainland China.
56GF Score
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