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China Chengtong Development Group (HKSE:00217) 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 Chengtong Development Group had a gross margin of 42.83% 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 Chengtong Development Group Gross Margin % Related Terms
China Chengtong Development Group 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.
China Chengtong Development Group Gross Margin % Chart
HKSE:00217 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, China Chengtong Development Group'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 Chengtong Development Group Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, China Chengtong Development Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Chengtong Development Group'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 Chengtong Development Group (HKSE:00217) has a Gross Margin % of 42.83% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Chengtong Development Group and its competitors. This is 116% above median its historical median of 19.87. Over the past decade, China Chengtong Development Group's Gross Margin % has ranged from 9.29 to 41.37. According to the industry distribution chart, China Chengtong Development Group ranks #241 out of 390 companies in the Credit Services industry, placing it in the top 61.8%.
Is China Chengtong Development Group's Gross Margin % too high?
China Chengtong Development Group's current Gross Margin % of 42.83% is 116% above median its 10-year median of 19.87. Over the past 10 years, this metric has ranged from a low of 9.29 to a high of 41.37. The Credit Services industry median Gross Margin % is 51.79. China Chengtong Development Group's value of 42.83% is 17.3% below this industry median. Based on the distribution chart, China Chengtong Development Group ranks #241 out of 390 companies in the Credit Services industry, which is below the industry midpoint. Overall, China Chengtong Development Group has a GF Score™ of 28/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Chengtong Development Group's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, China Chengtong Development Group ranks #241 out of 390 companies for Gross Margin %. This places China Chengtong Development Group in the lower half of its industry. The industry median Gross Margin % is 51.79. China Chengtong Development Group's value of 42.83% is 17.3% below this benchmark. Historically, China Chengtong Development Group's own Gross Margin % has ranged from 9.29 to 41.37 over the past decade. While the company's 10-year median is 19.87 vs. the industry median of 51.79, China Chengtong Development Group 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 a Credit Services company?
The median Gross Margin % among Credit Services companies is 51.79, based on 390 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 Chengtong Development Group's current Gross Margin % of 42.83% is 17.3% 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 China Chengtong Development Group and its competitors. For the Credit Services industry, the median Gross Margin % is 51.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Chengtong Development Group's current Gross Margin % is 42.83%, which is 116% above median its own 10-year median of 19.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Chengtong Development Group stock overvalued right now?
Based on GuruFocus' analysis, China Chengtong Development Group (HKSE:00217) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.06, compared to a current price of HK$0.12 — trading 93.3% above its estimated fair value. The current Gross Margin % is 42.83%, which is 116% above median its 10-year median of 19.87 and 17.3% below the Credit Services industry median of 51.79. China Chengtong Development Group's overall GF Score™ is 28/100 with 6 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 Chengtong Development Group (HKSE:00217), the current Gross Margin % is 42.83% 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 Chengtong Development Group (HKSE:00217) Overvalued in 2026?
Based on GuruFocus' analysis, China Chengtong Development Group stock appears to be overvalued.
The current stock price of HK$0.12 is trading 93.3% above its estimated GF Value™ of HK$0.06.
GuruFocus considers China Chengtong Development Group to be Significantly Overvalued.
Key valuation signals for HKSE:00217:
Gross Margin %: 42.83% (116% above median its 10-year median of 19.87)
GF Value™: HK$0.06 vs. price of HK$0.12 (93.3% above fair value)
Industry Position: 17.3% below the Credit Services median (#241 of 390)
No single metric tells the full story. See the HKSE:00217 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Chengtong Development Group Ltd is an investment holding company and has its operations divided into business segments: property development and investment, leasing, and marine recreation services and hotels. The property development and investment segment offers sales of properties and holding investment properties for appreciation and/ or providing rental services. The leasing segment provides leasing services, including finance lease, sale and leaseback, and operating lease services, and the Marine recreation services and hotel segment provides marine recreation and hotel services. It generates the majority of its revenue from the leasing segment.
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