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Synertone CommunicationHKSE:01613 +3.03%35 Gross Margin % is 42.79% as of Sep. 2025, which is 88% above its 10-year median of 22.80. GuruFocus rates HKSE:01613 with a GF Score™ of 35/100 and a GF Value™ of HK$0.12 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,454 Hardware companies, Synertone Communication ranks better than 56.68% on this metric.
HKSE:01613's Gross Margin % is ranked better than 56.68% of 2454
companies
in the Hardware industry
Industry Median: 24.5
vs HKSE:01613: 28.26
Synertone Communication had a gross margin of 42.79% for the quarter that ended in Sep. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Synertone Communication was -10.80% per year.
Synertone Communication (HKSE:01613) 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
Synertone Communication had a gross margin of 42.79% for the quarter that ended in Sep. 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.
Synertone Communication Gross Margin % Related Terms
Synertone Communication 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.
HKSE:01613 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Synertone Communication'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.
Synertone Communication Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Synertone Communication's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Synertone Communication'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.
Synertone Communication (HKSE:01613) has a Gross Margin % of 42.79% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Synertone Communication and its competitors. This is 88% above median its historical median of 22.80. According to the industry distribution chart, Synertone Communication ranks #1063 out of 2454 companies in the Hardware industry, placing it in the top 43.3%.
Is Synertone Communication's Gross Margin % too high?
Synertone Communication's current Gross Margin % of 42.79% is 88% above median its 10-year median of 22.80. The Hardware industry median Gross Margin % is 24.50. Synertone Communication's value of 42.79% is 74.7% above this industry median. Based on the distribution chart, Synertone Communication ranks #1063 out of 2454 companies in the Hardware industry, which is above the industry midpoint. Overall, Synertone Communication has a GF Score™ of 35/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Synertone Communication's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Synertone Communication ranks #1063 out of 2454 companies for Gross Margin %. This puts Synertone Communication in the upper half of its industry. The industry median Gross Margin % is 24.50. Synertone Communication's value of 42.79% is 74.7% above this benchmark. While the company's 10-year median is 22.80 vs. the industry median of 24.50, Synertone Communication 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,454 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. Synertone Communication's current Gross Margin % of 42.79% is 74.7% 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 Synertone Communication and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Synertone Communication's current Gross Margin % is 42.79%, which is 88% above median its own 10-year median of 22.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Synertone Communication stock overvalued right now?
Based on GuruFocus' analysis, Synertone Communication (HKSE:01613) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.12, compared to a current price of HK$0.51 — trading 325% above its estimated fair value. The current Gross Margin % is 42.79%, which is 88% above median its 10-year median of 22.80 and 74.7% above the Hardware industry median of 24.50. Synertone Communication's overall GF Score™ is 35/100 with 8 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 Synertone Communication (HKSE:01613), the current Gross Margin % is 42.79% as of Sep. 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 Synertone Communication (HKSE:01613) Overvalued in 2026?
Based on GuruFocus' analysis, Synertone Communication stock appears to be overvalued.
The current stock price of HK$0.51 is trading 325% above its estimated GF Value™ of HK$0.12.
GuruFocus considers Synertone Communication to be Significantly Overvalued.
Key valuation signals for HKSE:01613:
Gross Margin %: 42.79% (88% above median its 10-year median of 22.80)
GF Value™: HK$0.12 vs. price of HK$0.51 (325% above fair value)
Industry Position: 74.7% above the Hardware median (#1063 of 2454)
No single metric tells the full story. See the HKSE:01613 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Synertone Communication Corp is an investment holding company. The company's operating segments include Building intelligence, Control system, and Data Centre. It generates maximum revenue from the Building intelligence segment which includes the provision of video intercom systems and security alarm solutions for residential complexes; and smart home automation systems for new and existing households. Its Control System segment includes the provision of automation hardware and software products, information systems platforms, as well as the industrial and monitoring and scheduling management system solutions for the municipal utility industry. The Data Centre segment includes rental and maintenance services of computer equipment and machines and other related services.
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