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AInnovation Technology Group Co (HKSE:02121) 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
AInnovation Technology Group Co had a gross margin of 34.95% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
AInnovation Technology Group Co Gross Margin % Related Terms
AInnovation Technology Group 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.
AInnovation Technology Group Co Gross Margin % Chart
HKSE:02121 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, AInnovation Technology Group 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.
AInnovation Technology Group Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, AInnovation Technology Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AInnovation Technology Group 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.
AInnovation Technology Group Co (HKSE:02121) has a Gross Margin % of 34.95% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on AInnovation Technology Group Co and its competitors. This is near median its historical median of 32.55. Over the past decade, AInnovation Technology Group Co's Gross Margin % has ranged from 29.12 to 34.98. According to the industry distribution chart, AInnovation Technology Group Co ranks #1527 out of 2686 companies in the Software industry, placing it in the top 56.9%.
Is AInnovation Technology Group Co's Gross Margin % too high?
AInnovation Technology Group Co's current Gross Margin % of 34.95% is near median its 10-year median of 32.55. Over the past 10 years, this metric has ranged from a low of 29.12 to a high of 34.98. The Software industry median Gross Margin % is 40.50. AInnovation Technology Group Co's value of 34.95% is 13.7% below this industry median. Based on the distribution chart, AInnovation Technology Group Co ranks #1527 out of 2686 companies in the Software industry, which is below the industry midpoint. Overall, AInnovation Technology Group Co has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AInnovation Technology Group Co's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, AInnovation Technology Group Co ranks #1527 out of 2686 companies for Gross Margin %. This places AInnovation Technology Group Co in the lower half of its industry. The industry median Gross Margin % is 40.50. AInnovation Technology Group Co's value of 34.95% is 13.7% below this benchmark. Historically, AInnovation Technology Group Co's own Gross Margin % has ranged from 29.12 to 34.98 over the past decade. While the company's 10-year median is 32.55 vs. the industry median of 40.50, AInnovation Technology Group 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 40.50, based on 2,686 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. AInnovation Technology Group Co's current Gross Margin % of 34.95% is 13.7% 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 AInnovation Technology Group Co and its competitors. For the Software industry, the median Gross Margin % is 40.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AInnovation Technology Group Co's current Gross Margin % is 34.95%, which is near median its own 10-year median of 32.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AInnovation Technology Group Co stock overvalued right now?
Based on GuruFocus' analysis, AInnovation Technology Group Co (HKSE:02121) is currently considered Possible Value Trap. The stock's GF Value™ is HK$8.37, compared to a current price of HK$3.87 — trading 53.8% below its estimated fair value. The current Gross Margin % is 34.95%, which is near median its 10-year median of 32.55 and 13.7% below the Software industry median of 40.50. AInnovation Technology Group Co's overall GF Score™ is 71/100 with 5 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 AInnovation Technology Group Co (HKSE:02121), the current Gross Margin % is 34.95% 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 AInnovation Technology Group Co (HKSE:02121) Overvalued in 2026?
Based on GuruFocus' analysis, AInnovation Technology Group Co stock appears to be undervalued.
The current stock price of HK$3.87 is trading 53.8% below its estimated GF Value™ of HK$8.37.
GuruFocus considers AInnovation Technology Group Co to be Possible Value Trap.
Key valuation signals for HKSE:02121:
Gross Margin %: 34.95% (near median its 10-year median of 32.55)
GF Value™: HK$8.37 vs. price of HK$3.87 (53.8% below fair value)
Industry Position: 13.7% below the Software median (#1527 of 2686)
No single metric tells the full story. See the HKSE:02121 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AInnovation Technology Group Co Ltd mainly conducts research and development of artificial intelligence technologies and provides artificial intelligence-based software and hardware technology solutions services. The revenue of the Group is principally derived from artificial intelligence products and services. Geographically, the company generates all of its revenue in the PRC. The company also generates a small amount of revenue from sales of products and solutions, and the Services of data solutions.
71GF Score
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