Lung Kee Group Holdings (HKSE:00255) Gross Margin %: 63.63% (As of Dec. 2025) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:00255 Lung Kee Group Holdings Ltd HKSE:00255
67 GF Score
Price HK$1.50
GF Value HK$1.24
Valuation Modestly Overvalued
! 1 Warning Sign
View Full Analysis

What is Lung Kee Group Holdings Gross Margin %?

Lung Kee Group Holdings HKSE:00255 67 Gross Margin % is 63.63% as of Dec. 2025, which is 4% above its 10-year median of 61.11. GuruFocus rates HKSE:00255 with a GF Score™ of 67/100 and a GF Value™ of HK$1.24 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,998 Industrial Products companies, Lung Kee Group Holdings ranks better than 96.6% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Lung Kee Group Holdings's Gross Profit for the six months ended in Dec. 2025 was HK$402 Mil. Lung Kee Group Holdings's Revenue for the six months ended in Dec. 2025 was HK$631 Mil. Therefore, Lung Kee Group Holdings's Gross Margin % for the quarter that ended in Dec. 2025 was 63.63%.


The historical rank and industry rank for Lung Kee Group Holdings's Gross Margin % or its related term are showing as below:

HKSE:00255' s Gross Margin % Range Over the Past 10 Years
Min: 56.18   Med: 61.11   Max: 65.09
Current: 64.26


During the past 13 years, the highest Gross Margin % of Lung Kee Group Holdings was 65.09%. The lowest was 56.18%. And the median was 61.11%.

HKSE:00255's Gross Margin % is ranked better than
96.6% of 2998 companies
in the Industrial Products industry
Industry Median: 26.8 vs HKSE:00255: 64.26

Lung Kee Group Holdings had a gross margin of 63.63% for the quarter that ended in Dec. 2025 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lung Kee Group Holdings was -0.30% per year.


Lung Kee Group Holdings  (HKSE:00255) 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

Lung Kee Group Holdings had a gross margin of 63.63% 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.


Lung Kee Group Holdings Gross Margin % Related Terms


Lung Kee Group Holdings Gross Margin % Historical Data

* Premium members only.

The historical data trend for Lung Kee Group Holdings'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.

Lung Kee Group Holdings Gross Margin % Chart

Lung Kee Group Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 63.86 60.13 56.18 61.27 64.26

Lung Kee Group Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 54.88 60.02 62.55 64.84 63.63

HKSE:00255 vs CRS, ATI, MLI: Gross Margin % Comparison

For the Metal Fabrication subindustry, Lung Kee Group Holdings'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.


Lung Kee Group Holdings Gross Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Lung Kee Group Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lung Kee Group Holdings's Gross Margin % falls into.


HKSE:00255
67GF Score
Lung Kee Group Holdings Ltd HKSE:00255
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Lung Kee Group Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Lung Kee Group Holdings's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=848.1 / 1319.901
=(Revenue - Cost of Goods Sold) / Revenue
=(1319.901 - 471.758) / 1319.901
=64.26 %

Lung Kee Group Holdings's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=401.7 / 631.247
=(Revenue - Cost of Goods Sold) / Revenue
=(631.247 - 229.597) / 631.247
=63.63 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 63.63% mean?
Lung Kee Group Holdings (HKSE:00255) has a Gross Margin % of 63.63% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lung Kee Group Holdings and its competitors. This is near median its historical median of 61.11. Over the past decade, Lung Kee Group Holdings' Gross Margin % has ranged from 56.18 to 65.09. According to the industry distribution chart, Lung Kee Group Holdings ranks #102 out of 2998 companies in the Industrial Products industry, placing it in the top 3.4%.
Is Lung Kee Group Holdings' Gross Margin % too high?
Lung Kee Group Holdings' current Gross Margin % of 63.63% is near median its 10-year median of 61.11. Over the past 10 years, this metric has ranged from a low of 56.18 to a high of 65.09. The Industrial Products industry median Gross Margin % is 26.80. Lung Kee Group Holdings' value of 63.63% is 137.4% above this industry median. Based on the distribution chart, Lung Kee Group Holdings ranks #102 out of 2998 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Lung Kee Group Holdings has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lung Kee Group Holdings' Gross Margin % compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Lung Kee Group Holdings ranks #102 out of 2998 companies for Gross Margin %. This places Lung Kee Group Holdings in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.80. Lung Kee Group Holdings' value of 63.63% is 137.4% above this benchmark. Historically, Lung Kee Group Holdings' own Gross Margin % has ranged from 56.18 to 65.09 over the past decade. While the company's 10-year median is 61.11 vs. the industry median of 26.80, Lung Kee Group Holdings 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,998 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. Lung Kee Group Holdings's current Gross Margin % of 63.63% is 137.4% 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 Lung Kee Group Holdings and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lung Kee Group Holdings's current Gross Margin % is 63.63%, which is near median its own 10-year median of 61.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lung Kee Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lung Kee Group Holdings (HKSE:00255) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$1.24, compared to a current price of HK$1.50 — trading 20.6% above its estimated fair value. The current Gross Margin % is 63.63%, which is near median its 10-year median of 61.11 and 137.4% above the Industrial Products industry median of 26.80. Lung Kee Group Holdings' overall GF Score™ is 67/100 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 Lung Kee Group Holdings (HKSE:00255), the current Gross Margin % is 63.63% 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 Lung Kee Group Holdings (HKSE:00255) Overvalued in 2026?

Based on GuruFocus' analysis, Lung Kee Group Holdings stock appears to be overvalued. The current stock price of HK$1.50 is trading 20.6% above its estimated GF Value™ of HK$1.24. GuruFocus considers Lung Kee Group Holdings to be Modestly Overvalued.

Key valuation signals for HKSE:00255:

  • Gross Margin %: 63.63% (near median its 10-year median of 61.11)
  • GF Value™: HK$1.24 vs. price of HK$1.50 (20.6% above fair value)
  • GF Score™: 67/100 with 1 warning sign
  • Industry Position: 137.4% above the Industrial Products median (#102 of 2998)

No single metric tells the full story. See the HKSE:00255 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lung Kee Group Holdings Business Description

Address No. 1 On Kwan Street, Unit A, 15th Floor, Kings Wing Plaza 2, Sha Tin, New Territories, Hong Kong, HKG
Lung Kee Group Holdings Ltd is an investment holding company that provides corporate management services. Along with its subsidiaries, it is engaged in the manufacturing and marketing of mould bases and related products. Its product offerings include standard and custom-made mould base, mould components, tool and steel products such as plastic and steel mould, hot and cold work steel, precision plates, standard mould inserts, and other materials. The company generates a majority of its revenue from the People's Republic of China and the rest from other markets like Asia, Europe, and America.
67GF Score

Get the complete analysis for HKSE:00255

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$1.50
Price
HK$1.24
GF Value