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HKE HoldingsHKSE:01726 -3.03%59 Gross Margin % is 42.34% as of Dec. 2025, which is 17% above its 10-year median of 36.18. GuruFocus rates HKSE:01726 with a GF Score™ of 59/100 and a GF Value™ of HK$2.60 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,731 Construction companies, HKE Holdings ranks better than 86.77% on this metric.
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
HKE Holdings had a gross margin of 42.34% 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.
HKE Holdings Gross Margin % Related Terms
HKE Holdings Gross Margin % Historical Data
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The historical data trend for HKE Holdings'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:01726 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, HKE 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.
HKE Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, HKE Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HKE 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.
HKE Holdings (HKSE:01726) has a Gross Margin % of 42.34% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on HKE Holdings and its competitors. This is 17% above median its historical median of 36.18. Over the past decade, HKE Holdings' Gross Margin % has ranged from 18.91 to 47.94. According to the industry distribution chart, HKE Holdings ranks #229 out of 1731 companies in the Construction industry, placing it in the top 13.2%.
Is HKE Holdings' Gross Margin % too high?
HKE Holdings' current Gross Margin % of 42.34% is 17% above median its 10-year median of 36.18. Over the past 10 years, this metric has ranged from a low of 18.91 to a high of 47.94. The Construction industry median Gross Margin % is 20.79. HKE Holdings' value of 42.34% is 103.7% above this industry median. Based on the distribution chart, HKE Holdings ranks #229 out of 1731 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, HKE Holdings has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HKE Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, HKE Holdings ranks #229 out of 1731 companies for Gross Margin %. This places HKE Holdings in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.79. HKE Holdings' value of 42.34% is 103.7% above this benchmark. Historically, HKE Holdings' own Gross Margin % has ranged from 18.91 to 47.94 over the past decade. While the company's 10-year median is 36.18 vs. the industry median of 20.79, HKE Holdings 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 Construction company?
The median Gross Margin % among Construction companies is 20.79, based on 1,731 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. HKE Holdings's current Gross Margin % of 42.34% is 103.7% 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 HKE Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HKE Holdings's current Gross Margin % is 42.34%, which is 17% above median its own 10-year median of 36.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HKE Holdings stock overvalued right now?
Based on GuruFocus' analysis, HKE Holdings (HKSE:01726) is currently considered Possible Value Trap. The stock's GF Value™ is HK$2.60, compared to a current price of HK$0.96 — trading 63.1% below its estimated fair value. The current Gross Margin % is 42.34%, which is 17% above median its 10-year median of 36.18 and 103.7% above the Construction industry median of 20.79. HKE Holdings' overall GF Score™ is 59/100 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 HKE Holdings (HKSE:01726), the current Gross Margin % is 42.34% 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 HKE Holdings (HKSE:01726) Overvalued in 2026?
Based on GuruFocus' analysis, HKE Holdings stock appears to be undervalued.
The current stock price of HK$0.96 is trading 63.1% below its estimated GF Value™ of HK$2.60.
GuruFocus considers HKE Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01726:
Gross Margin %: 42.34% (17% above median its 10-year median of 36.18)
GF Value™: HK$2.60 vs. price of HK$0.96 (63.1% below fair value)
Industry Position: 103.7% above the Construction median (#229 of 1731)
No single metric tells the full story. See the HKSE:01726 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HKE Holdings Ltd is a Singapore-based contractor specializing in the medical and healthcare sectors with expertise in performing radiation shielding works. It mainly provides integrated design and building services for hospitals and clinics in Singapore. The company's Four operating segments include: Engineering Business segment which engaged in the provision of integrated design and building services, maintenance and other services as well as sales of tools and materials; Fintech platform segment in provision of virtual assets trading platform services; Investment holding segment and Trading and Asset Management Business segment which engaged in trading of derivatives and provision of advisory and asset management services. The majority of Revenue is from the Engineering Business.
59GF Score
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