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Chanjet Information Technology Co (HKSE:01588) 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
Chanjet Information Technology Co had a gross margin of 71.46% for the quarter that ended in Dec. 2025 => 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.
Chanjet Information Technology Co Gross Margin % Related Terms
Chanjet Information Technology 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.
Chanjet Information Technology Co Gross Margin % Chart
HKSE:01588 vs QH, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Chanjet Information Technology 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.
Chanjet Information Technology Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Chanjet Information Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chanjet Information Technology 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.
Chanjet Information Technology Co (HKSE:01588) has a Gross Margin % of 71.46% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chanjet Information Technology Co and its competitors. This is near median its historical median of 77.74. Over the past decade, Chanjet Information Technology Co's Gross Margin % has ranged from 60.81 to 93.01. According to the industry distribution chart, Chanjet Information Technology Co ranks #522 out of 2687 companies in the Software industry, placing it in the top 19.4%.
Is Chanjet Information Technology Co's Gross Margin % too high?
Chanjet Information Technology Co's current Gross Margin % of 71.46% is near median its 10-year median of 77.74. Over the past 10 years, this metric has ranged from a low of 60.81 to a high of 93.01. The Software industry median Gross Margin % is 40.51. Chanjet Information Technology Co's value of 71.46% is 76.4% above this industry median. Based on the distribution chart, Chanjet Information Technology Co ranks #522 out of 2687 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Chanjet Information Technology Co has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chanjet Information Technology Co's Gross Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Chanjet Information Technology Co ranks #522 out of 2687 companies for Gross Margin %. This places Chanjet Information Technology Co in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.51. Chanjet Information Technology Co's value of 71.46% is 76.4% above this benchmark. Historically, Chanjet Information Technology Co's own Gross Margin % has ranged from 60.81 to 93.01 over the past decade. While the company's 10-year median is 77.74 vs. the industry median of 40.51, Chanjet Information Technology 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 Software company?
The median Gross Margin % among Software companies is 40.51, based on 2,687 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. Chanjet Information Technology Co's current Gross Margin % of 71.46% is 76.4% 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 Chanjet Information Technology Co and its competitors. For the Software industry, the median Gross Margin % is 40.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chanjet Information Technology Co's current Gross Margin % is 71.46%, which is near median its own 10-year median of 77.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chanjet Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Chanjet Information Technology Co (HKSE:01588) is currently considered Possible Value Trap. The stock's GF Value™ is HK$7.95, compared to a current price of HK$4.20 — trading 47.2% below its estimated fair value. The current Gross Margin % is 71.46%, which is near median its 10-year median of 77.74 and 76.4% above the Software industry median of 40.51. Chanjet Information Technology Co's overall GF Score™ is 80/100 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 Chanjet Information Technology Co (HKSE:01588), the current Gross Margin % is 71.46% 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 Chanjet Information Technology Co (HKSE:01588) Overvalued in 2026?
Based on GuruFocus' analysis, Chanjet Information Technology Co stock appears to be undervalued.
The current stock price of HK$4.20 is trading 47.2% below its estimated GF Value™ of HK$7.95.
GuruFocus considers Chanjet Information Technology Co to be Possible Value Trap.
Key valuation signals for HKSE:01588:
Gross Margin %: 71.46% (near median its 10-year median of 77.74)
GF Value™: HK$7.95 vs. price of HK$4.20 (47.2% below fair value)
Industry Position: 76.4% above the Software median (#522 of 2687)
No single metric tells the full story. See the HKSE:01588 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chanjet Information Technology Co Ltd is engaged in the technical development, consulting, transfer, service, and training of computer software, hardware, and external devices, as well as the sale of printing paper, computer consumables, and related products. The Group also provides database services, internet information services, advertising design and publication, and agency bookkeeping services. Its product portfolio includes Easy Accounting Agent, Good Accountant, Biz Chat, Good Business, T Series Products, and Data Loan. The company generates the majority of its revenue from mainland China.
80GF Score
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