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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Kato (Hong Kong) HoldingsHKSE:02189 61 Gross Margin % is 93.01% as of Mar. 2026, which is 1% below its 10-year median of 93.88. GuruFocus rates HKSE:02189 with a GF Score™ of 61/100 and a GF Value™ of HK$0.53 (Fairly Valued). The stock has 6 warning signs investors should review. Among 629 Healthcare Providers & Services companies, Kato (Hong Kong) Holdings ranks better than 96.5% on this metric.
HKSE:02189's Gross Margin % is ranked better than 96.5% of 629
companies
in the Healthcare Providers & Services industry
Industry Median: 40.25
vs HKSE:02189: 93.43
Kato (Hong Kong) Holdings had a gross margin of 93.01% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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
Kato (Hong Kong) Holdings had a gross margin of 93.01% for the quarter that ended in Mar. 2026 => 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.
Kato (Hong Kong) Holdings Gross Margin % Related Terms
Kato (Hong Kong) Holdings 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:02189 vs HCA, THC, DVA: Gross Margin % Comparison
For the Medical Care Facilities subindustry, Kato (Hong Kong) 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.
Kato (Hong Kong) Holdings Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Kato (Hong Kong) Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kato (Hong Kong) 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.
Kato (Hong Kong) Holdings (HKSE:02189) has a Gross Margin % of 93.01% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kato (Hong Kong) Holdings and its competitors. This is near median its historical median of 93.88. Over the past decade, Kato (Hong Kong) Holdings' Gross Margin % has ranged from 93.13 to 96.07. According to the industry distribution chart, Kato (Hong Kong) Holdings ranks #22 out of 629 companies in the Healthcare Providers & Services industry, placing it in the top 3.5%.
Is Kato (Hong Kong) Holdings' Gross Margin % too high?
Kato (Hong Kong) Holdings' current Gross Margin % of 93.01% is near median its 10-year median of 93.88. Over the past 10 years, this metric has ranged from a low of 93.13 to a high of 96.07. The Healthcare Providers & Services industry median Gross Margin % is 40.25. Kato (Hong Kong) Holdings' value of 93.01% is 131.1% above this industry median. Based on the distribution chart, Kato (Hong Kong) Holdings ranks #22 out of 629 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, Kato (Hong Kong) Holdings has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kato (Hong Kong) Holdings' Gross Margin % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Kato (Hong Kong) Holdings ranks #22 out of 629 companies for Gross Margin %. This places Kato (Hong Kong) Holdings in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.25. Kato (Hong Kong) Holdings' value of 93.01% is 131.1% above this benchmark. Historically, Kato (Hong Kong) Holdings' own Gross Margin % has ranged from 93.13 to 96.07 over the past decade. While the company's 10-year median is 93.88 vs. the industry median of 40.25, Kato (Hong Kong) Holdings has consistently been above 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.25, based on 629 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. Kato (Hong Kong) Holdings's current Gross Margin % of 93.01% is 131.1% above 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 Kato (Hong Kong) Holdings and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kato (Hong Kong) Holdings's current Gross Margin % is 93.01%, which is near median its own 10-year median of 93.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kato (Hong Kong) Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kato (Hong Kong) Holdings (HKSE:02189) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.53, compared to a current price of HK$0.49 — trading 7.5% below its estimated fair value. The current Gross Margin % is 93.01%, which is near median its 10-year median of 93.88 and 131.1% above the Healthcare Providers & Services industry median of 40.25. Kato (Hong Kong) Holdings' overall GF Score™ is 61/100 with 6 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 Kato (Hong Kong) Holdings (HKSE:02189), the current Gross Margin % is 93.01% 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 Kato (Hong Kong) Holdings (HKSE:02189) Overvalued in 2026?
Based on GuruFocus' analysis, Kato (Hong Kong) Holdings stock appears to be undervalued.
The current stock price of HK$0.49 is trading 7.5% below its estimated GF Value™ of HK$0.53.
GuruFocus considers Kato (Hong Kong) Holdings to be Fairly Valued.
Key valuation signals for HKSE:02189:
Gross Margin %: 93.01% (near median its 10-year median of 93.88)
GF Value™: HK$0.53 vs. price of HK$0.49 (7.5% below fair value)
Industry Position: 131.1% above the Healthcare Providers & Services median (#22 of 629)
No single metric tells the full story. See the HKSE:02189 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kato (Hong Kong) Holdings Ltd is an established operator of residential care homes and daycare services for the elderly in Hong Kong. The company offers a wide range of residential care services for the elderly including; the provision of accommodation, professional nursing and care-taking services, nutritional management, medical services, physiotherapy and occupational therapy services, individual care plans and recreational services, and the sale of healthcare and medical goods and the provision of additional healthcare services to residents.
61GF Score
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