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China ITS (Holdings) Co (HKSE:01900) 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
China ITS (Holdings) Co had a gross margin of 17.50% 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.
China ITS (Holdings) Co Gross Margin % Related Terms
China ITS (Holdings) Co 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.
HKSE:01900 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, China ITS (Holdings) Co'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.
China ITS (Holdings) Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, China ITS (Holdings) Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China ITS (Holdings) Co'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.
China ITS (Holdings) Co (HKSE:01900) has a Gross Margin % of 17.50% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China ITS (Holdings) Co and its competitors. This is 39% below median its historical median of 28.65. Over the past decade, China ITS (Holdings) Co's Gross Margin % has ranged from 17.82 to 38.69. According to the industry distribution chart, China ITS (Holdings) Co ranks #1531 out of 2690 companies in the Software industry, placing it in the top 56.9%.
Is China ITS (Holdings) Co's Gross Margin % too high?
China ITS (Holdings) Co's current Gross Margin % of 17.50% is 39% below median its 10-year median of 28.65. Over the past 10 years, this metric has ranged from a low of 17.82 to a high of 38.69. The Software industry median Gross Margin % is 40.76. China ITS (Holdings) Co's value of 17.50% is 57.1% below this industry median. Based on the distribution chart, China ITS (Holdings) Co ranks #1531 out of 2690 companies in the Software industry, which is below the industry midpoint. Overall, China ITS (Holdings) Co has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China ITS (Holdings) Co's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, China ITS (Holdings) Co ranks #1531 out of 2690 companies for Gross Margin %. This places China ITS (Holdings) Co in the lower half of its industry. The industry median Gross Margin % is 40.76. China ITS (Holdings) Co's value of 17.50% is 57.1% below this benchmark. Historically, China ITS (Holdings) Co's own Gross Margin % has ranged from 17.82 to 38.69 over the past decade. While the company's 10-year median is 28.65 vs. the industry median of 40.76, China ITS (Holdings) Co 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 Software company?
The median Gross Margin % among Software companies is 40.76, based on 2,690 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. China ITS (Holdings) Co's current Gross Margin % of 17.50% is 57.1% 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 China ITS (Holdings) Co and its competitors. For the Software industry, the median Gross Margin % is 40.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China ITS (Holdings) Co's current Gross Margin % is 17.50%, which is 39% below median its own 10-year median of 28.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China ITS (Holdings) Co stock overvalued right now?
Based on GuruFocus' analysis, China ITS (Holdings) Co (HKSE:01900) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.20, compared to a current price of HK$0.19 — trading 5% below its estimated fair value. The current Gross Margin % is 17.50%, which is 39% below median its 10-year median of 28.65 and 57.1% below the Software industry median of 40.76. China ITS (Holdings) Co's overall GF Score™ is 49/100 with 4 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 China ITS (Holdings) Co (HKSE:01900), the current Gross Margin % is 17.50% 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 China ITS (Holdings) Co (HKSE:01900) Overvalued in 2026?
Based on GuruFocus' analysis, China ITS (Holdings) Co stock appears to be undervalued.
The current stock price of HK$0.19 is trading 5% below its estimated GF Value™ of HK$0.20.
GuruFocus considers China ITS (Holdings) Co to be Fairly Valued.
Key valuation signals for HKSE:01900:
Gross Margin %: 17.50% (39% below median its 10-year median of 28.65)
GF Value™: HK$0.20 vs. price of HK$0.19 (5% below fair value)
Industry Position: 57.1% below the Software median (#1531 of 2690)
No single metric tells the full story. See the HKSE:01900 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China ITS (Holdings) Co Ltd is mainly a provider of products, specialised solutions and services related to infrastructure technology in the railway and electric power sectors, energy-related management and services, and software technology development and technical consulting services for large-scale customers in the aviation industry, manufacturing industry, and government. Its segments are: Railway business segment, which generates maximum revenue and engages in the provision of products and specialised solutions, including railway communication products and energy-based products, and related value-added services such as maintenance services, network optimisation, network planning, and technical consulting for railway communication systems; Energy business; and Aviation business.
49GF Score
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