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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
China Leon Inspection HoldingHKSE:01586 88 Gross Margin % is 26.82% as of Dec. 2025, which is 38% below its 10-year median of 43.15. GuruFocus rates HKSE:01586 with a GF Score™ of 88/100 and a GF Value™ of HK$2.22 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,005 Business Services companies, China Leon Inspection Holding ranks worse than 50.75% on this metric.
HKSE:01586's Gross Margin % is ranked worse than 50.75% of 1005
companies
in the Business Services industry
Industry Median: 34.31
vs HKSE:01586: 33.85
China Leon Inspection Holding had a gross margin of 26.82% for the quarter that ended in Dec. 2025 => Competition eroding margins
China Leon Inspection Holding (HKSE:01586) 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 Leon Inspection Holding had a gross margin of 26.82% 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 Leon Inspection Holding Gross Margin % Related Terms
China Leon Inspection Holding 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 Leon Inspection Holding Gross Margin % Chart
HKSE:01586 vs CTAS, CPRT, GPN: Gross Margin % Comparison
For the Specialty Business Services subindustry, China Leon Inspection 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.
China Leon Inspection Holding Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, China Leon Inspection Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Leon Inspection 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.
China Leon Inspection Holding (HKSE:01586) has a Gross Margin % of 26.82% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Leon Inspection Holding and its competitors. This is 38% below median its historical median of 43.15. Over the past decade, China Leon Inspection Holding's Gross Margin % has ranged from 33.84 to 55.09. According to the industry distribution chart, China Leon Inspection Holding ranks #510 out of 1005 companies in the Business Services industry, placing it in the top 50.7%.
Is China Leon Inspection Holding's Gross Margin % too high?
China Leon Inspection Holding's current Gross Margin % of 26.82% is 38% below median its 10-year median of 43.15. Over the past 10 years, this metric has ranged from a low of 33.84 to a high of 55.09. The Business Services industry median Gross Margin % is 34.31. China Leon Inspection Holding's value of 26.82% is 21.8% below this industry median. Based on the distribution chart, China Leon Inspection Holding ranks #510 out of 1005 companies in the Business Services industry, which is below the industry midpoint. Overall, China Leon Inspection Holding has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Leon Inspection Holding's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, China Leon Inspection Holding ranks #510 out of 1005 companies for Gross Margin %. This places China Leon Inspection Holding in the lower half of its industry. The industry median Gross Margin % is 34.31. China Leon Inspection Holding's value of 26.82% is 21.8% below this benchmark. Historically, China Leon Inspection Holding's own Gross Margin % has ranged from 33.84 to 55.09 over the past decade. While the company's 10-year median is 43.15 vs. the industry median of 34.31, China Leon Inspection Holding 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.31, based on 1,005 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 Leon Inspection Holding's current Gross Margin % of 26.82% is 21.8% 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 China Leon Inspection Holding and its competitors. For the Business Services industry, the median Gross Margin % is 34.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Leon Inspection Holding's current Gross Margin % is 26.82%, which is 38% below median its own 10-year median of 43.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Leon Inspection Holding stock overvalued right now?
Based on GuruFocus' analysis, China Leon Inspection Holding (HKSE:01586) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$2.22, compared to a current price of HK$1.72 — trading 22.5% below its estimated fair value. The current Gross Margin % is 26.82%, which is 38% below median its 10-year median of 43.15 and 21.8% below the Business Services industry median of 34.31. China Leon Inspection Holding's overall GF Score™ is 88/100 with 6 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 China Leon Inspection Holding (HKSE:01586), the current Gross Margin % is 26.82% 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 China Leon Inspection Holding (HKSE:01586) Overvalued in 2026?
Based on GuruFocus' analysis, China Leon Inspection Holding stock appears to be undervalued.
The current stock price of HK$1.72 is trading 22.5% below its estimated GF Value™ of HK$2.22.
GuruFocus considers China Leon Inspection Holding to be Modestly Undervalued.
Key valuation signals for HKSE:01586:
Gross Margin %: 26.82% (38% below median its 10-year median of 43.15)
GF Value™: HK$2.22 vs. price of HK$1.72 (22.5% below fair value)
Industry Position: 21.8% below the Business Services median (#510 of 1005)
No single metric tells the full story. See the HKSE:01586 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Leon Inspection Holding Ltd is a coal testing inspection services provider. The business scope of the company includes Testing services, Surveying services, and witnessing and Ancillary services. Testing services focus on the quality assurance of coal; Surveying services include a draft survey to determine or verify the coal quantity, and it also provide witnessing services by observing testing and inspection activities conducted by the counterparties of its customers to detect dishonesty or abnormality. Geographically, it generates the majority of its revenue from Greater China.
88GF Score
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