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Pokfulam Development Co (HKSE:00225) 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
Pokfulam Development Co had a gross margin of 41.13% 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.
Pokfulam Development Co Gross Margin % Related Terms
Pokfulam Development 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.
HKSE:00225 vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Pokfulam 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.
Pokfulam Development Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Pokfulam Development Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pokfulam 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.
Pokfulam Development Co (HKSE:00225) has a Gross Margin % of 41.13% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pokfulam Development Co and its competitors. This is near median its historical median of 39.44. Over the past decade, Pokfulam Development Co's Gross Margin % has ranged from 30.78 to 66.14. According to the industry distribution chart, Pokfulam Development Co ranks #718 out of 1643 companies in the Real Estate industry, placing it in the top 43.7%.
Is Pokfulam Development Co's Gross Margin % too high?
Pokfulam Development Co's current Gross Margin % of 41.13% is near median its 10-year median of 39.44. Over the past 10 years, this metric has ranged from a low of 30.78 to a high of 66.14. The Real Estate industry median Gross Margin % is 36.31. Pokfulam Development Co's value of 41.13% is 13.3% above this industry median. Based on the distribution chart, Pokfulam Development Co ranks #718 out of 1643 companies in the Real Estate industry, which is above the industry midpoint. Overall, Pokfulam Development Co has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pokfulam Development Co's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Pokfulam Development Co ranks #718 out of 1643 companies for Gross Margin %. This puts Pokfulam Development Co in the upper half of its industry. The industry median Gross Margin % is 36.31. Pokfulam Development Co's value of 41.13% is 13.3% above this benchmark. Historically, Pokfulam Development Co's own Gross Margin % has ranged from 30.78 to 66.14 over the past decade. While the company's 10-year median is 39.44 vs. the industry median of 36.31, Pokfulam 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 36.31, based on 1,643 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. Pokfulam Development Co's current Gross Margin % of 41.13% is 13.3% 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 Pokfulam Development Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pokfulam Development Co's current Gross Margin % is 41.13%, which is near median its own 10-year median of 39.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pokfulam Development Co stock overvalued right now?
Based on GuruFocus' analysis, Pokfulam Development Co (HKSE:00225) is currently considered Fairly Valued. The stock's GF Value™ is HK$5.59, compared to a current price of HK$5.15 — trading 7.9% below its estimated fair value. The current Gross Margin % is 41.13%, which is near median its 10-year median of 39.44 and 13.3% above the Real Estate industry median of 36.31. Pokfulam Development Co's overall GF Score™ is 65/100 with 4 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 Pokfulam Development Co (HKSE:00225), the current Gross Margin % is 41.13% 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 Pokfulam Development Co (HKSE:00225) Overvalued in 2026?
Based on GuruFocus' analysis, Pokfulam Development Co stock appears to be undervalued.
The current stock price of HK$5.15 is trading 7.9% below its estimated GF Value™ of HK$5.59.
GuruFocus considers Pokfulam Development Co to be Fairly Valued.
Key valuation signals for HKSE:00225:
Gross Margin %: 41.13% (near median its 10-year median of 39.44)
GF Value™: HK$5.59 vs. price of HK$5.15 (7.9% below fair value)
Industry Position: 13.3% above the Real Estate median (#718 of 1643)
No single metric tells the full story. See the HKSE:00225 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pokfulam Development Co Ltd is a property investment and investment holding company. The company operates mainly in three business segments: Property Investment and Management segment is engaged in the letting and management of commercial industrial and residential properties; Trading of Goods segment is involved in the trading of visual and sound equipment, and home appliances; and Securities Investment segment deals in listed securities. The majority of its revenue is derived from Property Investment and Management. The company's portfolio includes residential developments as well as commercial and industrial buildings. All of its revenue is generated from Hong Kong.
65GF Score
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