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Kwoon Chung Bus HoldingsHKSE:00306 74 Gross Margin % is 22.93% as of Sep. 2025, which is 6% above its 10-year median of 21.69. GuruFocus rates HKSE:00306 with a GF Score™ of 74/100 and a GF Value™ of HK$3.02 (Fairly Valued). The stock has 4 warning signs investors should review. Among 982 Transportation companies, Kwoon Chung Bus Holdings ranks better than 67.41% on this metric.
Kwoon Chung Bus Holdings (HKSE:00306) 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
Kwoon Chung Bus Holdings had a gross margin of 22.93% for the quarter that ended in Sep. 2025 => Competition eroding margins
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.
Kwoon Chung Bus Holdings Gross Margin % Related Terms
Kwoon Chung Bus Holdings 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:00306 vs UNP, CSX, NSC: Gross Margin % Comparison
For the Railroads subindustry, Kwoon Chung Bus 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.
Kwoon Chung Bus Holdings Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Kwoon Chung Bus Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kwoon Chung Bus Holdings'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.
Kwoon Chung Bus Holdings (HKSE:00306) has a Gross Margin % of 22.93% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kwoon Chung Bus Holdings and its competitors. This is near median its historical median of 21.69. According to the industry distribution chart, Kwoon Chung Bus Holdings ranks #320 out of 982 companies in the Transportation industry, placing it in the top 32.6%.
Is Kwoon Chung Bus Holdings' Gross Margin % too high?
Kwoon Chung Bus Holdings' current Gross Margin % of 22.93% is near median its 10-year median of 21.69. The Transportation industry median Gross Margin % is 20.40. Kwoon Chung Bus Holdings' value of 22.93% is 12.4% above this industry median. Based on the distribution chart, Kwoon Chung Bus Holdings ranks #320 out of 982 companies in the Transportation industry, which is above the industry midpoint. Overall, Kwoon Chung Bus Holdings has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kwoon Chung Bus Holdings' Gross Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Kwoon Chung Bus Holdings ranks #320 out of 982 companies for Gross Margin %. This puts Kwoon Chung Bus Holdings in the upper half of its industry. The industry median Gross Margin % is 20.40. Kwoon Chung Bus Holdings' value of 22.93% is 12.4% above this benchmark. While the company's 10-year median is 21.69 vs. the industry median of 20.40, Kwoon Chung Bus 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 a Transportation company?
The median Gross Margin % among Transportation companies is 20.40, based on 982 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. Kwoon Chung Bus Holdings's current Gross Margin % of 22.93% is 12.4% 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 Kwoon Chung Bus Holdings and its competitors. For the Transportation industry, the median Gross Margin % is 20.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kwoon Chung Bus Holdings's current Gross Margin % is 22.93%, which is near median its own 10-year median of 21.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwoon Chung Bus Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kwoon Chung Bus Holdings (HKSE:00306) is currently considered Fairly Valued. The stock's GF Value™ is HK$3.02, compared to a current price of HK$2.79 — trading 7.6% below its estimated fair value. The current Gross Margin % is 22.93%, which is near median its 10-year median of 21.69 and 12.4% above the Transportation industry median of 20.40. Kwoon Chung Bus Holdings' overall GF Score™ is 74/100 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 Kwoon Chung Bus Holdings (HKSE:00306), the current Gross Margin % is 22.93% as of Sep. 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 Kwoon Chung Bus Holdings (HKSE:00306) Overvalued in 2026?
Based on GuruFocus' analysis, Kwoon Chung Bus Holdings stock appears to be undervalued.
The current stock price of HK$2.79 is trading 7.6% below its estimated GF Value™ of HK$3.02.
GuruFocus considers Kwoon Chung Bus Holdings to be Fairly Valued.
Key valuation signals for HKSE:00306:
Gross Margin %: 22.93% (near median its 10-year median of 21.69)
GF Value™: HK$3.02 vs. price of HK$2.79 (7.6% below fair value)
Industry Position: 12.4% above the Transportation median (#320 of 982)
No single metric tells the full story. See the HKSE:00306 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kwoon Chung Bus Holdings Ltd is engaged in transportation businesses. The company's operating segment includes a Non-franchised Bus; Limousine; Franchised Bus and PLB; Mainland China Business and Others. It generates maximum revenue from the Non-franchised bus segment. The Non-franchised bus segment includes the provision of non-franchised bus hire services in Hong Kong, cross-boundary passenger transportation services (other than limousine hire services) between Hong Kong and Mainland China, and other related services. Geographically, it operates in Hong Kong and Macau; and Chinese Mainland.
74GF Score
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