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China Merchants LandHKSE:00978 -2.05%43 Gross Margin % is 6.62% as of Dec. 2025, which is 69% below its 10-year median of 21.70. GuruFocus rates HKSE:00978 with a GF Score™ of 43/100 and a GF Value™ of HK$0.32 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,644 Real Estate companies, China Merchants Land ranks worse than 92.21% on this metric.
China Merchants Land Ltd gross margin has been in long-term decline. The average rate of decline per year is -26.8%.
The historical rank and industry rank for China Merchants Land's Gross Margin % or its related term are showing as below:
HKSE:00978'
s Gross Margin % Range Over the Past 10 Years
Min: 4.77 Med: 21.7 Max: 33.36
Current: 6.32
During the past 13 years, the highestGross Margin % of China Merchants Land was 33.36%. The lowest was 4.77%. And the median was 21.70%.
HKSE:00978's Gross Margin % is ranked worse than 92.21% of 1644
companies
in the Real Estate industry
Industry Median: 36.94
vs HKSE:00978: 6.32
China Merchants Land had a gross margin of 6.62% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China Merchants Land was -26.80% per year.
China Merchants Land (HKSE:00978) 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
China Merchants Land had a gross margin of 6.62% for the quarter that ended in Dec. 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.
China Merchants Land Gross Margin % Related Terms
China Merchants Land Gross Margin % Historical Data
* Premium members only.
The historical data trend for China Merchants Land'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.
China Merchants Land Gross Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, China Merchants Land'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.
China Merchants Land Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China Merchants Land's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Merchants Land'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.
China Merchants Land (HKSE:00978) has a Gross Margin % of 6.62% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Merchants Land and its competitors. This is 69% below median its historical median of 21.70. Over the past decade, China Merchants Land's Gross Margin % has ranged from 4.77 to 33.36. According to the industry distribution chart, China Merchants Land ranks #1516 out of 1644 companies in the Real Estate industry, placing it in the top 92.2%.
Is China Merchants Land's Gross Margin % too high?
China Merchants Land's current Gross Margin % of 6.62% is 69% below median its 10-year median of 21.70. Over the past 10 years, this metric has ranged from a low of 4.77 to a high of 33.36. The Real Estate industry median Gross Margin % is 36.94. China Merchants Land's value of 6.62% is 82.1% below this industry median. Based on the distribution chart, China Merchants Land ranks #1516 out of 1644 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, China Merchants Land has a GF Score™ of 43/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Land's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, China Merchants Land ranks #1516 out of 1644 companies for Gross Margin %. This places China Merchants Land in the lower half of its industry. The industry median Gross Margin % is 36.94. China Merchants Land's value of 6.62% is 82.1% below this benchmark. Historically, China Merchants Land's own Gross Margin % has ranged from 4.77 to 33.36 over the past decade. While the company's 10-year median is 21.70 vs. the industry median of 36.94, China Merchants Land 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 36.94, based on 1,644 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. China Merchants Land's current Gross Margin % of 6.62% is 82.1% 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 China Merchants Land and its competitors. For the Real Estate industry, the median Gross Margin % is 36.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Merchants Land's current Gross Margin % is 6.62%, which is 69% below median its own 10-year median of 21.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Land stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Land (HKSE:00978) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.32, compared to a current price of HK$0.24 — trading 25.3% below its estimated fair value. The current Gross Margin % is 6.62%, which is 69% below median its 10-year median of 21.70 and 82.1% below the Real Estate industry median of 36.94. China Merchants Land's overall GF Score™ is 43/100 with 8 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 China Merchants Land (HKSE:00978), the current Gross Margin % is 6.62% 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.
Is China Merchants Land (HKSE:00978) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Land stock appears to be undervalued.
The current stock price of HK$0.24 is trading 25.3% below its estimated GF Value™ of HK$0.32.
GuruFocus considers China Merchants Land to be Modestly Undervalued.
Key valuation signals for HKSE:00978:
Gross Margin %: 6.62% (69% below median its 10-year median of 21.70)
GF Value™: HK$0.32 vs. price of HK$0.24 (25.3% below fair value)
Industry Position: 82.1% below the Real Estate median (#1516 of 1644)
No single metric tells the full story. See the HKSE:00978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Land Ltd is an investment holding company. The company is principally engaged in the development, sale, lease, investment and management of properties; assets management; and investment holding activities. The company has two operating segment Development and sales of properties and property leasing (Properties Segment); and Asset management for office premises and shopping malls (Asset Management Segment). The company generated majority of revenue from Properties Segment. The company has presence in Foshan, Guangzhou, Nanjing and Jurong, Chongqing, Xi'an, and Hong Kong.
43GF Score
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