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AB Builders GroupHKSE:01615 -2.60%45 Gross Margin % is 13.03% as of Dec. 2025, which is 8% below its 10-year median of 14.16. GuruFocus rates HKSE:01615 with a GF Score™ of 45/100 and a GF Value™ of HK$0.52 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,729 Construction companies, AB Builders Group ranks worse than 83.69% on this metric.
AB Builders Group (HKSE:01615) 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
AB Builders Group had a gross margin of 13.03% for the quarter that ended in Dec. 2025 => No sustainable 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.
AB Builders Group Gross Margin % Related Terms
AB Builders Group Gross Margin % Historical Data
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The historical data trend for AB Builders Group'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:01615 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, AB Builders Group'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.
AB Builders Group Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, AB Builders Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AB Builders Group'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.
AB Builders Group (HKSE:01615) has a Gross Margin % of 13.03% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on AB Builders Group and its competitors. This is near median its historical median of 14.16. According to the industry distribution chart, AB Builders Group ranks #1447 out of 1729 companies in the Construction industry, placing it in the top 83.7%.
Is AB Builders Group's Gross Margin % too high?
AB Builders Group's current Gross Margin % of 13.03% is near median its 10-year median of 14.16. The Construction industry median Gross Margin % is 20.70. AB Builders Group's value of 13.03% is 37.1% below this industry median. Based on the distribution chart, AB Builders Group ranks #1447 out of 1729 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, AB Builders Group has a GF Score™ of 45/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AB Builders Group's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, AB Builders Group ranks #1447 out of 1729 companies for Gross Margin %. This places AB Builders Group in the lower half of its industry. The industry median Gross Margin % is 20.70. AB Builders Group's value of 13.03% is 37.1% below this benchmark. While the company's 10-year median is 14.16 vs. the industry median of 20.70, AB Builders Group 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 Construction company?
The median Gross Margin % among Construction companies is 20.70, based on 1,729 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. AB Builders Group's current Gross Margin % of 13.03% is 37.1% 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 AB Builders Group and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AB Builders Group's current Gross Margin % is 13.03%, which is near median its own 10-year median of 14.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AB Builders Group stock overvalued right now?
Based on GuruFocus' analysis, AB Builders Group (HKSE:01615) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.52, compared to a current price of HK$0.38 — trading 27.9% below its estimated fair value. The current Gross Margin % is 13.03%, which is near median its 10-year median of 14.16 and 37.1% below the Construction industry median of 20.70. AB Builders Group's overall GF Score™ is 45/100 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 AB Builders Group (HKSE:01615), the current Gross Margin % is 13.03% 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 AB Builders Group (HKSE:01615) Overvalued in 2026?
Based on GuruFocus' analysis, AB Builders Group stock appears to be undervalued.
The current stock price of HK$0.38 is trading 27.9% below its estimated GF Value™ of HK$0.52.
GuruFocus considers AB Builders Group to be Modestly Undervalued.
Key valuation signals for HKSE:01615:
Gross Margin %: 13.03% (near median its 10-year median of 14.16)
GF Value™: HK$0.52 vs. price of HK$0.38 (27.9% below fair value)
Industry Position: 37.1% below the Construction median (#1447 of 1729)
No single metric tells the full story. See the HKSE:01615 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AB Builders Group Ltd operates as a construction contractor, focused on providing structural works, including substructure and superstructure works such as foundation works, basement works, piling and pile cap work, and the construction of high-rise buildings, and fitting-out works, and structural works, and sales of air purification unit/system. The company's reportable segment is Construction Services, which comprises fitting-out works and structural works. Geographically, the company generates revenue from Macau, Hong Kong, and the People's Republic of China. The firm generates the majority of its revenue from Macau.
45GF Score
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