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Lai Sun Development CoHKSE:00488 -1.23%34 Gross Margin % is 25.40% as of Jan. 2026, which is 17% below its 10-year median of 30.78. GuruFocus rates HKSE:00488 with a GF Score™ of 34/100 and a GF Value™ of HK$0.56 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,642 Real Estate companies, Lai Sun Development Co ranks worse than 85.26% on this metric.
Lai Sun Development Co (HKSE:00488) 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
Lai Sun Development Co had a gross margin of 25.40% for the quarter that ended in Jan. 2026 => 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.
Lai Sun Development Co Gross Margin % Related Terms
Lai Sun Development Co Gross Margin % Historical Data
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The historical data trend for Lai Sun Development Co'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.
Lai Sun Development Co Gross Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, Lai Sun 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.
Lai Sun Development Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Lai Sun Development Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lai Sun 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.
Lai Sun Development Co (HKSE:00488) has a Gross Margin % of 25.40% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lai Sun Development Co and its competitors. This is 17% below median its historical median of 30.78. Over the past decade, Lai Sun Development Co's Gross Margin % has ranged from 14.26 to 57.31. According to the industry distribution chart, Lai Sun Development Co ranks #1400 out of 1642 companies in the Real Estate industry, placing it in the top 85.3%.
Is Lai Sun Development Co's Gross Margin % too high?
Lai Sun Development Co's current Gross Margin % of 25.40% is 17% below median its 10-year median of 30.78. Over the past 10 years, this metric has ranged from a low of 14.26 to a high of 57.31. The Real Estate industry median Gross Margin % is 36.42. Lai Sun Development Co's value of 25.40% is 30.2% below this industry median. Based on the distribution chart, Lai Sun Development Co ranks #1400 out of 1642 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Lai Sun Development Co has a GF Score™ of 34/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lai Sun Development Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Lai Sun Development Co ranks #1400 out of 1642 companies for Gross Margin %. This places Lai Sun Development Co in the lower half of its industry. The industry median Gross Margin % is 36.42. Lai Sun Development Co's value of 25.40% is 30.2% below this benchmark. Historically, Lai Sun Development Co's own Gross Margin % has ranged from 14.26 to 57.31 over the past decade. While the company's 10-year median is 30.78 vs. the industry median of 36.42, Lai Sun Development Co 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.42, based on 1,642 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. Lai Sun Development Co's current Gross Margin % of 25.40% is 30.2% 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 Lai Sun Development Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lai Sun Development Co's current Gross Margin % is 25.40%, which is 17% below median its own 10-year median of 30.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lai Sun Development Co stock overvalued right now?
Based on GuruFocus' analysis, Lai Sun Development Co (HKSE:00488) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.56, compared to a current price of HK$0.80 — trading 42.9% above its estimated fair value. The current Gross Margin % is 25.40%, which is 17% below median its 10-year median of 30.78 and 30.2% below the Real Estate industry median of 36.42. Lai Sun Development Co's overall GF Score™ is 34/100 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 Lai Sun Development Co (HKSE:00488), the current Gross Margin % is 25.40% as of Jan. 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 Lai Sun Development Co (HKSE:00488) Overvalued in 2026?
Based on GuruFocus' analysis, Lai Sun Development Co stock appears to be overvalued.
The current stock price of HK$0.80 is trading 42.9% above its estimated GF Value™ of HK$0.56.
GuruFocus considers Lai Sun Development Co to be Significantly Overvalued.
Key valuation signals for HKSE:00488:
Gross Margin %: 25.40% (17% below median its 10-year median of 30.78)
GF Value™: HK$0.56 vs. price of HK$0.80 (42.9% above fair value)
Industry Position: 30.2% below the Real Estate median (#1400 of 1642)
No single metric tells the full story. See the HKSE:00488 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lai Sun Development Co Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in various reportable operating segments such as; property development and sales; property investment; hotel operation; restaurant operation; media and entertainment; film and TV programs; cinema operation; theme park operation, and others. The property development and sales segment which derives a majority of its revenue, is engaged in property development and the sale of properties. Geographically, it derives a majority of its revenue from Mainland China and Macau, and the rest from Hong Kong, the United Kingdom, Vietnam, and other regions.
34GF Score
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