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HKSE:01120's Gross Margin % is ranked worse than 83.35% of 805
companies
in the Medical Devices & Instruments industry
Industry Median: 52.41
vs HKSE:01120: 29.22
Arts Optical International Holdings had a gross margin of 32.96% for the quarter that ended in Dec. 2025 => Competition eroding margins
Arts Optical International Holdings (HKSE:01120) 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
Arts Optical International Holdings had a gross margin of 32.96% 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.
Arts Optical International Holdings Gross Margin % Related Terms
Arts Optical International Holdings 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.
Arts Optical International Holdings Gross Margin % Chart
HKSE:01120 vs ISRG, BDX, RMD: Gross Margin % Comparison
For the Medical Instruments & Supplies subindustry, Arts Optical International Holdings'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.
Arts Optical International Holdings Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Arts Optical International Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arts Optical International Holdings'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.
Arts Optical International Holdings (HKSE:01120) has a Gross Margin % of 32.96% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Arts Optical International Holdings and its competitors. This is 37% above median its historical median of 24.09. Over the past decade, Arts Optical International Holdings' Gross Margin % has ranged from 12.75 to 31.39. According to the industry distribution chart, Arts Optical International Holdings ranks #671 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 83.4%.
Is Arts Optical International Holdings' Gross Margin % too high?
Arts Optical International Holdings' current Gross Margin % of 32.96% is 37% above median its 10-year median of 24.09. Over the past 10 years, this metric has ranged from a low of 12.75 to a high of 31.39. The Medical Devices & Instruments industry median Gross Margin % is 52.41. Arts Optical International Holdings' value of 32.96% is 37.1% below this industry median. Based on the distribution chart, Arts Optical International Holdings ranks #671 out of 805 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, Arts Optical International Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arts Optical International Holdings' Gross Margin % compare to ISRG and BDX?
According to the Medical Devices & Instruments industry distribution chart, Arts Optical International Holdings ranks #671 out of 805 companies for Gross Margin %. This places Arts Optical International Holdings in the lower half of its industry. The industry median Gross Margin % is 52.41. Arts Optical International Holdings' value of 32.96% is 37.1% below this benchmark. Historically, Arts Optical International Holdings' own Gross Margin % has ranged from 12.75 to 31.39 over the past decade. While the company's 10-year median is 24.09 vs. the industry median of 52.41, Arts Optical International Holdings 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 Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.41, based on 805 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. Arts Optical International Holdings's current Gross Margin % of 32.96% is 37.1% 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 Arts Optical International Holdings and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arts Optical International Holdings's current Gross Margin % is 32.96%, which is 37% above median its own 10-year median of 24.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arts Optical International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Arts Optical International Holdings (HKSE:01120) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.99, compared to a current price of HK$0.60 — trading 39.4% below its estimated fair value. The current Gross Margin % is 32.96%, which is 37% above median its 10-year median of 24.09 and 37.1% below the Medical Devices & Instruments industry median of 52.41. Arts Optical International Holdings' overall GF Score™ is 43/100 with 5 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 Arts Optical International Holdings (HKSE:01120), the current Gross Margin % is 32.96% 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 Arts Optical International Holdings (HKSE:01120) Overvalued in 2026?
Based on GuruFocus' analysis, Arts Optical International Holdings stock appears to be undervalued.
The current stock price of HK$0.60 is trading 39.4% below its estimated GF Value™ of HK$0.99.
GuruFocus considers Arts Optical International Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01120:
Gross Margin %: 32.96% (37% above median its 10-year median of 24.09)
GF Value™: HK$0.99 vs. price of HK$0.60 (39.4% below fair value)
Industry Position: 37.1% below the Medical Devices & Instruments median (#671 of 805)
No single metric tells the full story. See the HKSE:01120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arts Optical International Holdings Ltd is an investment holding company. Through its subsidiaries, it is engaged in the manufacturing and trading of prescription frames, sunglasses, and optical lenses as well as property holding. It operates in three divisions: Original design manufacturing, Distribution, and Lens division. The group is organized into four segments, which are sales of optical products to customers located in Europe, the United States, Asia, and other regions, of which the majority of the revenue is generated from Europe.
43GF Score
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