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VongroupHKSE:00318 48 Gross Margin % is 88.24% as of Oct. 2025, which is 4% below its 10-year median of 91.91. GuruFocus rates HKSE:00318 with a GF Score™ of 48/100 and a GF Value™ of HK$0.29 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,690 Software companies, Vongroup ranks better than 97.4% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Vongroup's Gross Profit for the
six
months ended in Oct. 2025 was HK$90.5 Mil. Vongroup's Revenue for the
six
months ended in Oct. 2025 was HK$102.6 Mil. Therefore, Vongroup's Gross Margin % for the quarter that ended in Oct. 2025 was 88.24%.
The historical rank and industry rank for Vongroup's Gross Margin % or its related term are showing as below:
HKSE:00318'
s Gross Margin % Range Over the Past 10 Years
Min: 33.28 Med: 91.91 Max: 99.02
Current: 94.22
During the past 13 years, the highestGross Margin % of Vongroup was 99.02%. The lowest was 33.28%. And the median was 91.91%.
HKSE:00318's Gross Margin % is ranked better than 97.4% of 2690
companies
in the Software industry
Industry Median: 40.775
vs HKSE:00318: 94.22
Vongroup had a gross margin of 88.24% for the quarter that ended in Oct. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Vongroup was 2.10% per year.
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
Vongroup had a gross margin of 88.24% for the quarter that ended in Oct. 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.
Vongroup Gross Margin % Related Terms
Vongroup Gross Margin % Historical Data
* Premium members only.
The historical data trend for Vongroup'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.
HKSE:00318 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Vongroup'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.
Vongroup Gross Margin % vs Software Industry
For the Software industry and Technology sector, Vongroup's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vongroup'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.
Vongroup (HKSE:00318) has a Gross Margin % of 88.24% as of Oct. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Vongroup and its competitors. This is near median its historical median of 91.91. Over the past decade, Vongroup's Gross Margin % has ranged from 33.28 to 99.02. According to the industry distribution chart, Vongroup ranks #70 out of 2690 companies in the Software industry, placing it in the top 2.6%.
Is Vongroup's Gross Margin % too high?
Vongroup's current Gross Margin % of 88.24% is near median its 10-year median of 91.91. Over the past 10 years, this metric has ranged from a low of 33.28 to a high of 99.02. The Software industry median Gross Margin % is 40.78. Vongroup's value of 88.24% is 116.4% above this industry median. Based on the distribution chart, Vongroup ranks #70 out of 2690 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Vongroup has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vongroup's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Vongroup ranks #70 out of 2690 companies for Gross Margin %. This places Vongroup in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.78. Vongroup's value of 88.24% is 116.4% above this benchmark. Historically, Vongroup's own Gross Margin % has ranged from 33.28 to 99.02 over the past decade. While the company's 10-year median is 91.91 vs. the industry median of 40.78, Vongroup 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 Software company?
The median Gross Margin % among Software companies is 40.78, based on 2,690 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. Vongroup's current Gross Margin % of 88.24% is 116.4% 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 Vongroup and its competitors. For the Software industry, the median Gross Margin % is 40.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vongroup's current Gross Margin % is 88.24%, which is near median its own 10-year median of 91.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vongroup stock overvalued right now?
Based on GuruFocus' analysis, Vongroup (HKSE:00318) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.29, compared to a current price of HK$0.89 — trading 206.9% above its estimated fair value. The current Gross Margin % is 88.24%, which is near median its 10-year median of 91.91 and 116.4% above the Software industry median of 40.78. Vongroup's overall GF Score™ is 48/100 with 7 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 Vongroup (HKSE:00318), the current Gross Margin % is 88.24% as of Oct. 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 Vongroup (HKSE:00318) Overvalued in 2026?
Based on GuruFocus' analysis, Vongroup stock appears to be overvalued.
The current stock price of HK$0.89 is trading 206.9% above its estimated GF Value™ of HK$0.29.
GuruFocus considers Vongroup to be Significantly Overvalued.
Key valuation signals for HKSE:00318:
Gross Margin %: 88.24% (near median its 10-year median of 91.91)
GF Value™: HK$0.29 vs. price of HK$0.89 (206.9% above fair value)
Industry Position: 116.4% above the Software median (#70 of 2690)
No single metric tells the full story. See the HKSE:00318 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vongroup Ltd is an investment holding company and the operating segment includes Financial, Property, and Technology. The majority of the revenue is generated from the Technology segment which is engaged in the business paradigms such as fintech, cloud, distance business, and virtual technologies. It helps clients to analyze, design, develop, operate, and maintain integrated e-commerce and other online commercials, educational, and biotech platforms and products. Its geographical segments include Hong Kong, the People's Republic of China, and Macau, out of which the majority of revenue comes from Hong Kong.
48GF Score
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