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HKSE:01518's Gross Margin % is ranked worse than 66.61% of 629
companies
in the Healthcare Providers & Services industry
Industry Median: 40.25
vs HKSE:01518: 29.31
New Century Healthcare Holdings Co had a gross margin of 29.18% for the quarter that ended in Dec. 2025 => Competition eroding margins
New Century Healthcare Holdings Co (HKSE:01518) 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
New Century Healthcare Holdings Co had a gross margin of 29.18% 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.
New Century Healthcare Holdings Co Gross Margin % Related Terms
New Century Healthcare Holdings 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.
New Century Healthcare Holdings Co Gross Margin % Chart
HKSE:01518 vs HCA, THC, DVA: Gross Margin % Comparison
For the Medical Care Facilities subindustry, New Century Healthcare Holdings 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.
New Century Healthcare Holdings Co Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, New Century Healthcare Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where New Century Healthcare Holdings 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.
New Century Healthcare Holdings Co (HKSE:01518) has a Gross Margin % of 29.18% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on New Century Healthcare Holdings Co and its competitors. This is 22% below median its historical median of 37.20. Over the past decade, New Century Healthcare Holdings Co's Gross Margin % has ranged from 26.48 to 49.50. According to the industry distribution chart, New Century Healthcare Holdings Co ranks #419 out of 629 companies in the Healthcare Providers & Services industry, placing it in the top 66.6%.
Is New Century Healthcare Holdings Co's Gross Margin % too high?
New Century Healthcare Holdings Co's current Gross Margin % of 29.18% is 22% below median its 10-year median of 37.20. Over the past 10 years, this metric has ranged from a low of 26.48 to a high of 49.50. The Healthcare Providers & Services industry median Gross Margin % is 40.25. New Century Healthcare Holdings Co's value of 29.18% is 27.5% below this industry median. Based on the distribution chart, New Century Healthcare Holdings Co ranks #419 out of 629 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, New Century Healthcare Holdings Co has a GF Score™ of 41/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does New Century Healthcare Holdings Co's Gross Margin % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, New Century Healthcare Holdings Co ranks #419 out of 629 companies for Gross Margin %. This places New Century Healthcare Holdings Co in the lower half of its industry. The industry median Gross Margin % is 40.25. New Century Healthcare Holdings Co's value of 29.18% is 27.5% below this benchmark. Historically, New Century Healthcare Holdings Co's own Gross Margin % has ranged from 26.48 to 49.50 over the past decade. While the company's 10-year median is 37.20 vs. the industry median of 40.25, New Century Healthcare Holdings Co 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.25, based on 629 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. New Century Healthcare Holdings Co's current Gross Margin % of 29.18% is 27.5% 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 New Century Healthcare Holdings Co and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Century Healthcare Holdings Co's current Gross Margin % is 29.18%, which is 22% below median its own 10-year median of 37.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Century Healthcare Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, New Century Healthcare Holdings Co (HKSE:01518) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.57, compared to a current price of HK$0.24 — trading 57.9% below its estimated fair value. The current Gross Margin % is 29.18%, which is 22% below median its 10-year median of 37.20 and 27.5% below the Healthcare Providers & Services industry median of 40.25. New Century Healthcare Holdings Co's overall GF Score™ is 41/100 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 New Century Healthcare Holdings Co (HKSE:01518), the current Gross Margin % is 29.18% 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 New Century Healthcare Holdings Co (HKSE:01518) Overvalued in 2026?
Based on GuruFocus' analysis, New Century Healthcare Holdings Co stock appears to be undervalued.
The current stock price of HK$0.24 is trading 57.9% below its estimated GF Value™ of HK$0.57.
GuruFocus considers New Century Healthcare Holdings Co to be Possible Value Trap.
Key valuation signals for HKSE:01518:
Gross Margin %: 29.18% (22% below median its 10-year median of 37.20)
GF Value™: HK$0.57 vs. price of HK$0.24 (57.9% below fair value)
Industry Position: 27.5% below the Healthcare Providers & Services median (#419 of 629)
No single metric tells the full story. See the HKSE:01518 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Century Healthcare Holdings Co Ltd is an investment holding company engaged in the healthcare industry. The company specializes in the provision of medical services to women and childre. The segments of the company include Pediatric services, Obstetrics services, Gynecology services, and Others. The group's revenue is mostly derived from activities in the PRC. A majority of income is generated from the Pediatrics segment.
41GF Score
Get the complete analysis for HKSE:01518
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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