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Changyou International GroupHKSE:01039 Gross Margin % is 23.81% as of Dec. 2025, which is 314% above its 10-year median of 5.75. The stock has 5 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Changyou International Group ranks worse than 73.68% on this metric.
HKSE:01039's Gross Margin % is ranked worse than 73.68% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.29
vs HKSE:01039: 22.83
Changyou International Group had a gross margin of 23.81% for the quarter that ended in Dec. 2025 => Competition eroding margins
Changyou International Group (HKSE:01039) 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
Changyou International Group had a gross margin of 23.81% 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.
Changyou International Group Gross Margin % Related Terms
Changyou International Group 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:01039 vs AMZN, BABA, PDD: Gross Margin % Comparison
For the Internet Retail subindustry, Changyou International Group'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.
Changyou International Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Changyou International Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Changyou International Group'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.
Changyou International Group (HKSE:01039) has a Gross Margin % of 23.81% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Changyou International Group and its competitors. This is 314% above median its historical median of 5.75. According to the industry distribution chart, Changyou International Group ranks #823 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 73.7%.
Is Changyou International Group's Gross Margin % too high?
Changyou International Group's current Gross Margin % of 23.81% is 314% above median its 10-year median of 5.75. The Retail - Cyclical industry median Gross Margin % is 36.29. Changyou International Group's value of 23.81% is 34.4% below this industry median. Based on the distribution chart, Changyou International Group ranks #823 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint.
How does Changyou International Group's Gross Margin % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Changyou International Group ranks #823 out of 1117 companies for Gross Margin %. This places Changyou International Group in the lower half of its industry. The industry median Gross Margin % is 36.29. Changyou International Group's value of 23.81% is 34.4% below this benchmark. While the company's 10-year median is 5.75 vs. the industry median of 36.29, Changyou International Group 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.29, based on 1,117 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. Changyou International Group's current Gross Margin % of 23.81% is 34.4% 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 Changyou International Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changyou International Group's current Gross Margin % is 23.81%, which is 314% above median its own 10-year median of 5.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changyou International Group stock overvalued right now?
Based on GuruFocus' analysis, Changyou International Group (HKSE:01039) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.10, compared to a current price of HK$0.05 — trading 50% below its estimated fair value. The current Gross Margin % is 23.81%, which is 314% above median its 10-year median of 5.75 and 34.4% below the Retail - Cyclical industry median of 36.29. 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 Changyou International Group (HKSE:01039), the current Gross Margin % is 23.81% 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.
Changyou International Group Ltd is engaged in the the sales of goods in the form of virtual assets and credits for consumption of merchandises, games, services and other commercial transactions through the development and operation of an electronic trading platform to promote and facilitate awards earned by customers of loyalty programmes of other companies to be exchanged in the People's Republic of China ( PRC) and other trading business. The company mainly operates in the Digital Point segment that operates an electronic trading platform to promote and facilitate awards earned by customers of loyalty programmes of other companies to be exchanged globally in the form of virtual assets and credits for consumption of merchandises, games, services and other commercial transactions.
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