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Digital Hollywood InteractiveHKSE:02022 Gross Margin % is 44.84% as of Dec. 2025, which is 3% below its 10-year median of 46.46. The stock has 4 warning signs investors should review. Among 492 Interactive Media companies, Digital Hollywood Interactive ranks worse than 64.63% on this metric.
Digital Hollywood Interactive (HKSE:02022) 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
Digital Hollywood Interactive had a gross margin of 44.84% 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.
Digital Hollywood Interactive Gross Margin % Related Terms
Digital Hollywood Interactive 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.
Digital Hollywood Interactive Gross Margin % Chart
HKSE:02022 vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Digital Hollywood Interactive'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.
Digital Hollywood Interactive Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Digital Hollywood Interactive's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Hollywood Interactive'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.
Digital Hollywood Interactive (HKSE:02022) has a Gross Margin % of 44.84% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Hollywood Interactive and its competitors. This is near median its historical median of 46.46. Over the past decade, Digital Hollywood Interactive's Gross Margin % has ranged from 41.39 to 55.64. According to the industry distribution chart, Digital Hollywood Interactive ranks #318 out of 492 companies in the Interactive Media industry, placing it in the top 64.6%.
Is Digital Hollywood Interactive's Gross Margin % too high?
Digital Hollywood Interactive's current Gross Margin % of 44.84% is near median its 10-year median of 46.46. Over the past 10 years, this metric has ranged from a low of 41.39 to a high of 55.64. The Interactive Media industry median Gross Margin % is 61.56. Digital Hollywood Interactive's value of 44.84% is 27.2% below this industry median. Based on the distribution chart, Digital Hollywood Interactive ranks #318 out of 492 companies in the Interactive Media industry, which is below the industry midpoint.
How does Digital Hollywood Interactive's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Digital Hollywood Interactive ranks #318 out of 492 companies for Gross Margin %. This places Digital Hollywood Interactive in the lower half of its industry. The industry median Gross Margin % is 61.56. Digital Hollywood Interactive's value of 44.84% is 27.2% below this benchmark. Historically, Digital Hollywood Interactive's own Gross Margin % has ranged from 41.39 to 55.64 over the past decade. While the company's 10-year median is 46.46 vs. the industry median of 61.56, Digital Hollywood Interactive 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 Interactive Media company?
The median Gross Margin % among Interactive Media companies is 61.56, based on 492 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. Digital Hollywood Interactive's current Gross Margin % of 44.84% is 27.2% 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 Digital Hollywood Interactive and its competitors. For the Interactive Media industry, the median Gross Margin % is 61.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Hollywood Interactive's current Gross Margin % is 44.84%, which is near median its own 10-year median of 46.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Hollywood Interactive stock overvalued right now?
Based on GuruFocus' analysis, Digital Hollywood Interactive (HKSE:02022) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.05 — trading 6% above its estimated fair value. The current Gross Margin % is 44.84%, which is near median its 10-year median of 46.46 and 27.2% below the Interactive Media industry median of 61.56. 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 Digital Hollywood Interactive (HKSE:02022), the current Gross Margin % is 44.84% 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.
Digital Hollywood Interactive Ltd is an online game publisher for China-based game developers, with fast-growing in-house development capabilities for mobile games. The group licenses online games from game developers and earns game publishing service revenue by making a localised version of the licensed games and publishing them to the game players through distribution platforms, include social networking websites, online application stores (such as Apple Inc.'s App Store and Google Play installed in mobile telecommunications devices), web-based and mobile game portals in certain countries and regions, including the group's websites. The segments of the company includes Online games and Advertising, out of which company derives maximum revenue from Online Games.
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