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HKSE:01660's Gross Margin % is ranked worse than 60.9% of 156
companies
in the Industrial Distribution industry
Industry Median: 24.145
vs HKSE:01660: 20.24
Seven Elements Investment Holdings had a gross margin of 12.43% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Seven Elements Investment Holdings (HKSE:01660) 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
Seven Elements Investment Holdings had a gross margin of 12.43% for the quarter that ended in Mar. 2026 => 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.
Seven Elements Investment Holdings Gross Margin % Related Terms
Seven Elements Investment Holdings 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.
Seven Elements Investment Holdings Gross Margin % Chart
HKSE:01660 vs GWW, FAST, FERG: Gross Margin % Comparison
For the Industrial Distribution subindustry, Seven Elements Investment Holdings'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.
Seven Elements Investment Holdings Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Seven Elements Investment Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Seven Elements Investment Holdings'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.
Seven Elements Investment Holdings (HKSE:01660) has a Gross Margin % of 12.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Seven Elements Investment Holdings and its competitors. This is 64% below median its historical median of 34.49. Over the past decade, Seven Elements Investment Holdings' Gross Margin % has ranged from 10.62 to 45.60. According to the industry distribution chart, Seven Elements Investment Holdings ranks #95 out of 156 companies in the Industrial Distribution industry, placing it in the top 60.9%.
Is Seven Elements Investment Holdings' Gross Margin % too high?
Seven Elements Investment Holdings' current Gross Margin % of 12.43% is 64% below median its 10-year median of 34.49. Over the past 10 years, this metric has ranged from a low of 10.62 to a high of 45.60. The Industrial Distribution industry median Gross Margin % is 24.15. Seven Elements Investment Holdings' value of 12.43% is 48.5% below this industry median. Based on the distribution chart, Seven Elements Investment Holdings ranks #95 out of 156 companies in the Industrial Distribution industry, which is below the industry midpoint. Overall, Seven Elements Investment Holdings has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Seven Elements Investment Holdings' Gross Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Seven Elements Investment Holdings ranks #95 out of 156 companies for Gross Margin %. This places Seven Elements Investment Holdings in the lower half of its industry. The industry median Gross Margin % is 24.15. Seven Elements Investment Holdings' value of 12.43% is 48.5% below this benchmark. Historically, Seven Elements Investment Holdings' own Gross Margin % has ranged from 10.62 to 45.60 over the past decade. While the company's 10-year median is 34.49 vs. the industry median of 24.15, Seven Elements Investment Holdings 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 an Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.15, based on 156 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. Seven Elements Investment Holdings's current Gross Margin % of 12.43% is 48.5% 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 Seven Elements Investment Holdings and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Seven Elements Investment Holdings's current Gross Margin % is 12.43%, which is 64% below median its own 10-year median of 34.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Seven Elements Investment Holdings stock overvalued right now?
Based on GuruFocus' analysis, Seven Elements Investment Holdings (HKSE:01660) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.12, compared to a current price of HK$0.23 — trading 88.3% above its estimated fair value. The current Gross Margin % is 12.43%, which is 64% below median its 10-year median of 34.49 and 48.5% below the Industrial Distribution industry median of 24.15. Seven Elements Investment Holdings' overall GF Score™ is 53/100 with 3 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 Seven Elements Investment Holdings (HKSE:01660), the current Gross Margin % is 12.43% as of Mar. 2026. 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 Seven Elements Investment Holdings (HKSE:01660) Overvalued in 2026?
Based on GuruFocus' analysis, Seven Elements Investment Holdings stock appears to be overvalued.
The current stock price of HK$0.23 is trading 88.3% above its estimated GF Value™ of HK$0.12.
GuruFocus considers Seven Elements Investment Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01660:
Gross Margin %: 12.43% (64% below median its 10-year median of 34.49)
GF Value™: HK$0.12 vs. price of HK$0.23 (88.3% above fair value)
Industry Position: 48.5% below the Industrial Distribution median (#95 of 156)
No single metric tells the full story. See the HKSE:01660 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Seven Elements Investment Holdings Ltd, formerly known as Zhaobangji Lifestyle Holdings Ltd, is an investment holding company. Through its subsidiaries, the organization is engaged in providing construction machinery trading and leasing services. The operating segments of group are Trading; Leasing; Property management; Property leasing, subletting, retail and others; Money lending; and Transportation. It derives maximum revenue from the Leasing segment which involves the Leasing of machinery and provision of related services. Geographically, the company generates a majority of its revenue from Hong Kong.
53GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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