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Shenzhen SDMC Technology CoHKSE:00901 +5.15%20 Gross Margin % is 21.02% as of Dec. 2025, which is 9% above its 10-year median of 19.25. GuruFocus rates HKSE:00901 with a GF Score™ of 20/100. The stock has 3 warning signs investors should review. Among 2,451 Hardware companies, Shenzhen SDMC Technology Co ranks worse than 62.02% on this metric.
Shenzhen SDMC Technology Co (HKSE:00901) 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
Shenzhen SDMC Technology Co had a gross margin of 21.02% for the quarter that ended in Dec. 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.
Shenzhen SDMC Technology Co Gross Margin % Related Terms
Shenzhen SDMC Technology Co 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:00901 vs CSCO, MSI, HPE: Gross Margin % Comparison
For the Communication Equipment subindustry, Shenzhen SDMC Technology 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.
Shenzhen SDMC Technology Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Shenzhen SDMC Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shenzhen SDMC Technology 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.
Shenzhen SDMC Technology Co (HKSE:00901) has a Gross Margin % of 21.02% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shenzhen SDMC Technology Co and its competitors. This is near median its historical median of 19.25. Over the past decade, Shenzhen SDMC Technology Co's Gross Margin % has ranged from 18.87 to 21.14. According to the industry distribution chart, Shenzhen SDMC Technology Co ranks #1520 out of 2451 companies in the Hardware industry, placing it in the top 62%.
Is Shenzhen SDMC Technology Co's Gross Margin % too high?
Shenzhen SDMC Technology Co's current Gross Margin % of 21.02% is near median its 10-year median of 19.25. Over the past 10 years, this metric has ranged from a low of 18.87 to a high of 21.14. The Hardware industry median Gross Margin % is 24.49. Shenzhen SDMC Technology Co's value of 21.02% is 14.2% below this industry median. Based on the distribution chart, Shenzhen SDMC Technology Co ranks #1520 out of 2451 companies in the Hardware industry, which is below the industry midpoint. Overall, Shenzhen SDMC Technology Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Shenzhen SDMC Technology Co's Gross Margin % compare to CSCO and MSI?
According to the Hardware industry distribution chart, Shenzhen SDMC Technology Co ranks #1520 out of 2451 companies for Gross Margin %. This places Shenzhen SDMC Technology Co in the lower half of its industry. The industry median Gross Margin % is 24.49. Shenzhen SDMC Technology Co's value of 21.02% is 14.2% below this benchmark. Historically, Shenzhen SDMC Technology Co's own Gross Margin % has ranged from 18.87 to 21.14 over the past decade. While the company's 10-year median is 19.25 vs. the industry median of 24.49, Shenzhen SDMC Technology 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.49, based on 2,451 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. Shenzhen SDMC Technology Co's current Gross Margin % of 21.02% is 14.2% 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 Shenzhen SDMC Technology Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen SDMC Technology Co's current Gross Margin % is 21.02%, which is near median its own 10-year median of 19.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen SDMC Technology Co stock overvalued right now?
Shenzhen SDMC Technology Co (HKSE:00901) has a current Gross Margin % of 21.02%. The current Gross Margin % is 21.02%, which is near median its 10-year median of 19.25 and 14.2% below the Hardware industry median of 24.49. Shenzhen SDMC Technology Co's overall GF Score™ is 20/100 with 3 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 Shenzhen SDMC Technology Co (HKSE:00901), the current Gross Margin % is 21.02% 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.
Shenzhen SDMC Technology Co Ltd is principally engaged in (i) sales of digital video products and network communication products, and (ii) provision of system platforms and services. The majority of revenue was mainly generated from sales of hardware products, namely digital video devices and network communication devices. Its other hardware products include media streaming terminals, speakers, projectors, cameras, optical network terminals, Wi-Fi routers, and cable modems. The company also develops system platforms including Cedar, XHome, and XMediaTV. Geographically, the maximum revenue is generated from Asia.
20GF Score
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