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Ares AsiaHKSE:00645 36 Gross Margin % is 0.21% as of Sep. 2025, which is 72% below its 10-year median of 0.74. GuruFocus rates HKSE:00645 with a GF Score™ of 36/100. The stock has 7 warning signs investors should review. Among 124 Other Energy Sources companies, Ares Asia ranks worse than 81.45% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Ares Asia's Gross Profit for the
six
months ended in Sep. 2025 was HK$0.01 Mil. Ares Asia's Revenue for the
six
months ended in Sep. 2025 was HK$3.84 Mil. Therefore, Ares Asia's Gross Margin % for the quarter that ended in Sep. 2025 was 0.21%.
The historical rank and industry rank for Ares Asia's Gross Margin % or its related term are showing as below:
HKSE:00645'
s Gross Margin % Range Over the Past 10 Years
Min: 0.2 Med: 0.74 Max: 5.26
Current: 5.26
During the past 13 years, the highestGross Margin % of Ares Asia was 5.26%. The lowest was 0.20%. And the median was 0.74%.
HKSE:00645's Gross Margin % is ranked worse than 81.45% of 124
companies
in the Other Energy Sources industry
Industry Median: 18.775
vs HKSE:00645: 5.26
Ares Asia had a gross margin of 0.21% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ares Asia was 14.00% per year.
Ares Asia (HKSE:00645) 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
Ares Asia had a gross margin of 0.21% for the quarter that ended in Sep. 2025 => No sustainable 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.
Ares Asia Gross Margin % Related Terms
Ares Asia Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ares Asia'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.
For the Thermal Coal subindustry, Ares Asia'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.
Ares Asia Gross Margin % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Ares Asia's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ares Asia'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.
Ares Asia (HKSE:00645) has a Gross Margin % of 0.21% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Ares Asia and its competitors. This is 72% below median its historical median of 0.74. Over the past decade, Ares Asia's Gross Margin % has ranged from 0.20 to 5.26. According to the industry distribution chart, Ares Asia ranks #101 out of 124 companies in the Other Energy Sources industry, placing it in the top 81.5%.
Is Ares Asia's Gross Margin % too high?
Ares Asia's current Gross Margin % of 0.21% is 72% below median its 10-year median of 0.74. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 5.26. The Other Energy Sources industry median Gross Margin % is 18.78. Ares Asia's value of 0.21% is 98.9% below this industry median. Based on the distribution chart, Ares Asia ranks #101 out of 124 companies in the Other Energy Sources industry, which is in the bottom quartile relative to peers. Overall, Ares Asia has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Ares Asia's Gross Margin % compare to competitors?
According to the Other Energy Sources industry distribution chart, Ares Asia ranks #101 out of 124 companies for Gross Margin %. This places Ares Asia in the lower half of its industry. The industry median Gross Margin % is 18.78. Ares Asia's value of 0.21% is 98.9% below this benchmark. Historically, Ares Asia's own Gross Margin % has ranged from 0.20 to 5.26 over the past decade. While the company's 10-year median is 0.74 vs. the industry median of 18.78, Ares Asia 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 an Other Energy Sources company?
The median Gross Margin % among Other Energy Sources companies is 18.78, based on 124 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. Ares Asia's current Gross Margin % of 0.21% is 98.9% 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 Ares Asia and its competitors. For the Other Energy Sources industry, the median Gross Margin % is 18.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Asia's current Gross Margin % is 0.21%, which is 72% below median its own 10-year median of 0.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Asia stock overvalued right now?
Ares Asia (HKSE:00645) has a current Gross Margin % of 0.21%. The current Gross Margin % is 0.21%, which is 72% below median its 10-year median of 0.74 and 98.9% below the Other Energy Sources industry median of 18.78. Ares Asia's overall GF Score™ is 36/100 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 Ares Asia (HKSE:00645), the current Gross Margin % is 0.21% 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.
Ares Asia Ltd is an investment holding company. The group is principally engaged in the business of coal trading, entailing the selling of coal purchased from various countries to Mainland China and other commodities trading, which encompasses supply chain management and risk management service. Its business falls under the primary segment of Coal and other trading. Geographically, the group has a business presence in Mainland China, Hong Kong, and other countries, of which maximum revenue is derived from Mainland China.
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