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Be Friends HoldingHKSE:01450 -1.23%67 Gross Margin % is 42.10% as of Jun. 2026, which is 24% above its 10-year median of 34.08. GuruFocus rates HKSE:01450 with a GF Score™ of 67/100 and a GF Value™ of HK$2.28 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,689 Software companies, Be Friends Holding ranks worse than 50.28% on this metric.
Be Friends Holding (HKSE:01450) 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
Be Friends Holding had a gross margin of 42.10% for the quarter that ended in Jun. 2026 => Durable 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.
Be Friends Holding Gross Margin % Related Terms
Be Friends Holding Gross Margin % Historical Data
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The historical data trend for Be Friends Holding'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.
HKSE:01450 vs QH, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Be Friends Holding'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.
Be Friends Holding Gross Margin % vs Software Industry
For the Software industry and Technology sector, Be Friends Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Be Friends Holding'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.
Be Friends Holding (HKSE:01450) has a Gross Margin % of 42.10% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Be Friends Holding and its competitors. This is 24% above median its historical median of 34.08. Over the past decade, Be Friends Holding's Gross Margin % has ranged from 20.46 to 52.77. According to the industry distribution chart, Be Friends Holding ranks #1352 out of 2689 companies in the Software industry, placing it in the top 50.3%.
Is Be Friends Holding's Gross Margin % too high?
Be Friends Holding's current Gross Margin % of 42.10% is 24% above median its 10-year median of 34.08. Over the past 10 years, this metric has ranged from a low of 20.46 to a high of 52.77. The Software industry median Gross Margin % is 40.69. Be Friends Holding's value of 42.10% is 3.5% above this industry median. Based on the distribution chart, Be Friends Holding ranks #1352 out of 2689 companies in the Software industry, which is below the industry midpoint. Overall, Be Friends Holding has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Be Friends Holding's Gross Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Be Friends Holding ranks #1352 out of 2689 companies for Gross Margin %. This places Be Friends Holding in the lower half of its industry. The industry median Gross Margin % is 40.69. Be Friends Holding's value of 42.10% is 3.5% above this benchmark. Historically, Be Friends Holding's own Gross Margin % has ranged from 20.46 to 52.77 over the past decade. While the company's 10-year median is 34.08 vs. the industry median of 40.69, Be Friends Holding 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 Software company?
The median Gross Margin % among Software companies is 40.69, based on 2,689 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. Be Friends Holding's current Gross Margin % of 42.10% is 3.5% 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 Be Friends Holding and its competitors. For the Software industry, the median Gross Margin % is 40.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Be Friends Holding's current Gross Margin % is 42.10%, which is 24% above median its own 10-year median of 34.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Be Friends Holding stock overvalued right now?
Based on GuruFocus' analysis, Be Friends Holding (HKSE:01450) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$2.28, compared to a current price of HK$0.80 — trading 64.9% below its estimated fair value. The current Gross Margin % is 42.10%, which is 24% above median its 10-year median of 34.08 and 3.5% above the Software industry median of 40.69. Be Friends Holding's overall GF Score™ is 67/100 with 2 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 Be Friends Holding (HKSE:01450), the current Gross Margin % is 42.10% as of Jun. 2026. 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 Be Friends Holding (HKSE:01450) Overvalued in 2026?
Based on GuruFocus' analysis, Be Friends Holding stock appears to be undervalued.
The current stock price of HK$0.80 is trading 64.9% below its estimated GF Value™ of HK$2.28.
GuruFocus considers Be Friends Holding to be Significantly Undervalued.
Key valuation signals for HKSE:01450:
Gross Margin %: 42.10% (24% above median its 10-year median of 34.08)
GF Value™: HK$2.28 vs. price of HK$0.80 (64.9% below fair value)
Industry Position: 3.5% above the Software median (#1352 of 2689)
No single metric tells the full story. See the HKSE:01450 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Be Friends Holding Ltd is engaged in the provision of new media services, application solutions, sales of self-developed products, and system maintenance services, for the all-media industry in the People's Republic of China (the PRC). The Group has operations mainly in the PRC. The company's segments include New Media Services.
67GF Score
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