Wecon Holdings (HKSE:01793) Gross Margin %: 3.80% (As of Mar. 2026) — 21% Below Median

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HKSE:01793 Wecon Holdings Ltd HKSE:01793
57 GF Score
Price HK$0.82
GF Value HK$0.19
Valuation Significantly Overvalued
! 10 Warning Signs
View Full Analysis

What is Wecon Holdings Gross Margin %?

Wecon Holdings HKSE:01793 57 Gross Margin % is 3.80% as of Mar. 2026, which is 21% below its 10-year median of 4.84. GuruFocus rates HKSE:01793 with a GF Score™ of 57/100 and a GF Value™ of HK$0.19 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,729 Construction companies, Wecon Holdings ranks worse than 93.58% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Wecon Holdings's Gross Profit for the six months ended in Mar. 2026 was HK$16 Mil. Wecon Holdings's Revenue for the six months ended in Mar. 2026 was HK$415 Mil. Therefore, Wecon Holdings's Gross Margin % for the quarter that ended in Mar. 2026 was 3.80%.

Warning Sign:

Wecon Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -7%.


The historical rank and industry rank for Wecon Holdings's Gross Margin % or its related term are showing as below:

HKSE:01793' s Gross Margin % Range Over the Past 10 Years
Min: 3.54   Med: 4.84   Max: 9.23
Current: 3.66


During the past 11 years, the highest Gross Margin % of Wecon Holdings was 9.23%. The lowest was 3.54%. And the median was 4.84%.

HKSE:01793's Gross Margin % is ranked worse than
93.58% of 1729 companies
in the Construction industry
Industry Median: 20.68 vs HKSE:01793: 3.66

Wecon Holdings had a gross margin of 3.80% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Wecon Holdings was -7.00% per year.


Wecon Holdings  (HKSE:01793) 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

Wecon Holdings had a gross margin of 3.80% 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.


Wecon Holdings Gross Margin % Related Terms


Wecon Holdings Gross Margin % Historical Data

* Premium members only.

The historical data trend for Wecon 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.

Wecon Holdings Gross Margin % Chart

Wecon Holdings Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.65 4.49 3.89 3.54 3.66

Wecon Holdings Semi-Annual Data
Mar16 Mar17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.44 2.92 4.30 3.56 3.80

HKSE:01793 vs PWR, FIX, EME: Gross Margin % Comparison

For the Engineering & Construction subindustry, Wecon 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.


Wecon Holdings Gross Margin % vs Construction Industry

For the Construction industry and Industrials sector, Wecon Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Wecon Holdings's Gross Margin % falls into.


HKSE:01793
57GF Score
Wecon Holdings Ltd HKSE:01793
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Wecon Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Wecon Holdings's Gross Margin for the fiscal year that ended in Mar. 2026 is calculated as

Gross Margin % (A: Mar. 2026 )=Gross Profit (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=38.9 / 1063.314
=(Revenue - Cost of Goods Sold) / Revenue
=(1063.314 - 1024.435) / 1063.314
=3.66 %

Wecon Holdings's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=15.8 / 415.286
=(Revenue - Cost of Goods Sold) / Revenue
=(415.286 - 399.501) / 415.286
=3.80 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 3.80% mean?
Wecon Holdings (HKSE:01793) has a Gross Margin % of 3.80% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Wecon Holdings and its competitors. This is 21% below median its historical median of 4.84. Over the past decade, Wecon Holdings' Gross Margin % has ranged from 3.54 to 9.23. According to the industry distribution chart, Wecon Holdings ranks #1618 out of 1729 companies in the Construction industry, placing it in the top 93.6%.
Is Wecon Holdings' Gross Margin % too high?
Wecon Holdings' current Gross Margin % of 3.80% is 21% below median its 10-year median of 4.84. Over the past 10 years, this metric has ranged from a low of 3.54 to a high of 9.23. The Construction industry median Gross Margin % is 20.68. Wecon Holdings' value of 3.80% is 81.6% below this industry median. Based on the distribution chart, Wecon Holdings ranks #1618 out of 1729 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Wecon Holdings has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Wecon Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Wecon Holdings ranks #1618 out of 1729 companies for Gross Margin %. This places Wecon Holdings in the lower half of its industry. The industry median Gross Margin % is 20.68. Wecon Holdings' value of 3.80% is 81.6% below this benchmark. Historically, Wecon Holdings' own Gross Margin % has ranged from 3.54 to 9.23 over the past decade. While the company's 10-year median is 4.84 vs. the industry median of 20.68, Wecon 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 20.68, 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. Wecon Holdings's current Gross Margin % of 3.80% is 81.6% 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 Wecon Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wecon Holdings's current Gross Margin % is 3.80%, which is 21% below median its own 10-year median of 4.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wecon Holdings stock overvalued right now?
Based on GuruFocus' analysis, Wecon Holdings (HKSE:01793) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.19, compared to a current price of HK$0.82 — trading 331.6% above its estimated fair value. The current Gross Margin % is 3.80%, which is 21% below median its 10-year median of 4.84 and 81.6% below the Construction industry median of 20.68. Wecon Holdings' overall GF Score™ is 57/100 with 10 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 Wecon Holdings (HKSE:01793), the current Gross Margin % is 3.80% 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 Wecon Holdings (HKSE:01793) Overvalued in 2026?

Based on GuruFocus' analysis, Wecon Holdings stock appears to be overvalued. The current stock price of HK$0.82 is trading 331.6% above its estimated GF Value™ of HK$0.19. GuruFocus considers Wecon Holdings to be Significantly Overvalued.

Key valuation signals for HKSE:01793:

  • Gross Margin %: 3.80% (21% below median its 10-year median of 4.84)
  • GF Value™: HK$0.19 vs. price of HK$0.82 (331.6% above fair value)
  • GF Score™: 57/100 with 10 warning signs
  • Industry Position: 81.6% below the Construction median (#1618 of 1729)

No single metric tells the full story. See the HKSE:01793 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Wecon Holdings Business Description

Address 244-252 Des Voeux Road Central, Rooms 1801-1802, 18th Floor, Tung Hip Commercial Building, Hong Kong, HKG
Wecon Holdings Ltd is an investment holding company. The company's operating segment includes Construction contracts and RMAA works services. The Construction contracts services provided by the group consist of building works for new buildings, including residential, commercial, and industrial buildings. Its RMAA works services include the general upkeep, maintenance, improvement, refurbishment, alteration, and addition of existing facilities and components of buildings and their surroundings. It generates maximum revenue from the Construction contracts segment. Geographically, it derives revenue from Hong Kong.
57GF Score

Get the complete analysis for HKSE:01793

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.82
Price
HK$0.19
GF Value