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HPC HoldingsHKSE:01742 -1.90%51 Gross Margin % is 6.00% as of Apr. 2026, which is 9% below its 10-year median of 6.62. GuruFocus rates HKSE:01742 with a GF Score™ of 51/100 and a GF Value™ of HK$0.13 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,723 Construction companies, HPC Holdings ranks worse than 88.28% 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
HPC Holdings had a gross margin of 6.00% for the quarter that ended in Apr. 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.
HPC Holdings Gross Margin % Related Terms
HPC Holdings Gross Margin % Historical Data
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The historical data trend for HPC 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:01742 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, HPC 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.
HPC Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, HPC Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HPC 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.
HPC Holdings (HKSE:01742) has a Gross Margin % of 6.00% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HPC Holdings and its competitors. This is near median its historical median of 6.62. According to the industry distribution chart, HPC Holdings ranks #1521 out of 1723 companies in the Construction industry, placing it in the top 88.3%.
Is HPC Holdings' Gross Margin % too high?
HPC Holdings' current Gross Margin % of 6.00% is near median its 10-year median of 6.62. The Construction industry median Gross Margin % is 20.77. HPC Holdings' value of 6.00% is 71.1% below this industry median. Based on the distribution chart, HPC Holdings ranks #1521 out of 1723 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, HPC Holdings has a GF Score™ of 51/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HPC Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, HPC Holdings ranks #1521 out of 1723 companies for Gross Margin %. This places HPC Holdings in the lower half of its industry. The industry median Gross Margin % is 20.77. HPC Holdings' value of 6.00% is 71.1% below this benchmark. While the company's 10-year median is 6.62 vs. the industry median of 20.77, HPC 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 a Construction company?
The median Gross Margin % among Construction companies is 20.77, based on 1,723 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. HPC Holdings's current Gross Margin % of 6.00% is 71.1% 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 HPC Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HPC Holdings's current Gross Margin % is 6.00%, which is near median its own 10-year median of 6.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HPC Holdings stock overvalued right now?
Based on GuruFocus' analysis, HPC Holdings (HKSE:01742) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.13, compared to a current price of HK$0.16 — trading 19.2% above its estimated fair value. The current Gross Margin % is 6.00%, which is near median its 10-year median of 6.62 and 71.1% below the Construction industry median of 20.77. HPC Holdings' overall GF Score™ is 51/100 with 1 warning sign 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 HPC Holdings (HKSE:01742), the current Gross Margin % is 6.00% as of Apr. 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 HPC Holdings (HKSE:01742) Overvalued in 2026?
Based on GuruFocus' analysis, HPC Holdings stock appears to be overvalued.
The current stock price of HK$0.16 is trading 19.2% above its estimated GF Value™ of HK$0.13.
GuruFocus considers HPC Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:01742:
Gross Margin %: 6.00% (near median its 10-year median of 6.62)
GF Value™: HK$0.13 vs. price of HK$0.16 (19.2% above fair value)
Industry Position: 71.1% below the Construction median (#1521 of 1723)
No single metric tells the full story. See the HKSE:01742 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HPC Holdings Ltd is a Singapore-based investment holding company. The Company operates through two segments: General building construction and Civil engineering. The General building construction segment relates to the design and building projects of warehouses and other industrial or commercial buildings. The Civil engineering segment relates to the construction of public infrastructures, such as train stations, tunnels, railways and expressways. Its contractor works are related to designing and building projects for commercial and industrial buildings, such as logistics and warehouse facilities, offices, workshops and carparks and nursing homes. The company derives maximum revenue from General building construction segment.
51GF Score
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