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China New Town Development CoHKSE:01278 -4.23% Gross Margin % is 37.60% as of Dec. 2025, which is 46% below its 10-year median of 69.77. The stock has 6 warning signs investors should review. Among 1,643 Real Estate companies, China New Town Development Co ranks better than 62.63% on this metric.
China New Town Development Co (HKSE:01278) 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 New Town Development Co had a gross margin of 37.60% 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.
China New Town Development Co Gross Margin % Related Terms
China New Town Development 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.
China New Town Development Co Gross Margin % Chart
China New Town Development Co Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, China New Town Development 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.
China New Town Development Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China New Town Development Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China New Town Development 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.
China New Town Development Co (HKSE:01278) has a Gross Margin % of 37.60% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China New Town Development Co and its competitors. This is 46% below median its historical median of 69.77. According to the industry distribution chart, China New Town Development Co ranks #614 out of 1643 companies in the Real Estate industry, placing it in the top 37.4%.
Is China New Town Development Co's Gross Margin % too high?
China New Town Development Co's current Gross Margin % of 37.60% is 46% below median its 10-year median of 69.77. The Real Estate industry median Gross Margin % is 36.31. China New Town Development Co's value of 37.60% is 3.6% above this industry median. Based on the distribution chart, China New Town Development Co ranks #614 out of 1643 companies in the Real Estate industry, which is above the industry midpoint.
How does China New Town Development Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, China New Town Development Co ranks #614 out of 1643 companies for Gross Margin %. This puts China New Town Development Co in the upper half of its industry. The industry median Gross Margin % is 36.31. China New Town Development Co's value of 37.60% is 3.6% above this benchmark. While the company's 10-year median is 69.77 vs. the industry median of 36.31, China New Town Development Co has consistently been above 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 36.31, based on 1,643 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 New Town Development Co's current Gross Margin % of 37.60% is 3.6% above 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 New Town Development Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China New Town Development Co's current Gross Margin % is 37.60%, which is 46% below median its own 10-year median of 69.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China New Town Development Co stock overvalued right now?
Based on GuruFocus' analysis, China New Town Development Co (HKSE:01278) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.07, compared to a current price of HK$0.07 — trading 2.9% below its estimated fair value. The current Gross Margin % is 37.60%, which is 46% below median its 10-year median of 69.77 and 3.6% above the Real Estate industry median of 36.31. 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 New Town Development Co (HKSE:01278), the current Gross Margin % is 37.60% 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.
China New Town Development Co Ltd is engaged in urbanization investment and real estate-related businesses in Mainland China. The company has four operating segments: Urbanization Investment, Property Leasing, Building Construction, and Others. The Urbanization Investment segment is responsible for fixed-income projects related to new-type urbanization. The Property Leasing segment provides leasing services for investment properties, while the Building Construction segment is engaged in the construction of ancillary public facilities. The Others segment includes the provision of other services. The company derives the majority of its revenue from the Urbanization Investment segment.
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