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Kangqiao Service GroupHKSE:02205 61 Gross Margin % is 20.94% as of Dec. 2025, which is 12% below its 10-year median of 23.87. GuruFocus rates HKSE:02205 with a GF Score™ of 61/100 and a GF Value™ of HK$0.74 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,642 Real Estate companies, Kangqiao Service Group ranks worse than 73.45% on this metric.
Kangqiao Service Group (HKSE:02205) 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
Kangqiao Service Group had a gross margin of 20.94% 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.
Kangqiao Service Group Gross Margin % Related Terms
Kangqiao Service Group Gross Margin % Historical Data
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The historical data trend for Kangqiao Service Group'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.
HKSE:02205 vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Kangqiao Service Group'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.
Kangqiao Service Group Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Kangqiao Service Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kangqiao Service Group'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.
Kangqiao Service Group (HKSE:02205) has a Gross Margin % of 20.94% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kangqiao Service Group and its competitors. This is 12% below median its historical median of 23.87. Over the past decade, Kangqiao Service Group's Gross Margin % has ranged from 21.28 to 30.67. According to the industry distribution chart, Kangqiao Service Group ranks #1206 out of 1642 companies in the Real Estate industry, placing it in the top 73.4%.
Is Kangqiao Service Group's Gross Margin % too high?
Kangqiao Service Group's current Gross Margin % of 20.94% is 12% below median its 10-year median of 23.87. Over the past 10 years, this metric has ranged from a low of 21.28 to a high of 30.67. The Real Estate industry median Gross Margin % is 36.82. Kangqiao Service Group's value of 20.94% is 43.1% below this industry median. Based on the distribution chart, Kangqiao Service Group ranks #1206 out of 1642 companies in the Real Estate industry, which is below the industry midpoint. Overall, Kangqiao Service Group has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kangqiao Service Group's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Kangqiao Service Group ranks #1206 out of 1642 companies for Gross Margin %. This places Kangqiao Service Group in the lower half of its industry. The industry median Gross Margin % is 36.82. Kangqiao Service Group's value of 20.94% is 43.1% below this benchmark. Historically, Kangqiao Service Group's own Gross Margin % has ranged from 21.28 to 30.67 over the past decade. While the company's 10-year median is 23.87 vs. the industry median of 36.82, Kangqiao Service Group 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.82, based on 1,642 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. Kangqiao Service Group's current Gross Margin % of 20.94% is 43.1% 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 Kangqiao Service Group and its competitors. For the Real Estate industry, the median Gross Margin % is 36.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kangqiao Service Group's current Gross Margin % is 20.94%, which is 12% below median its own 10-year median of 23.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kangqiao Service Group stock overvalued right now?
Based on GuruFocus' analysis, Kangqiao Service Group (HKSE:02205) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.74, compared to a current price of HK$0.58 — trading 22.3% below its estimated fair value. The current Gross Margin % is 20.94%, which is 12% below median its 10-year median of 23.87 and 43.1% below the Real Estate industry median of 36.82. Kangqiao Service Group's overall GF Score™ is 61/100 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 Kangqiao Service Group (HKSE:02205), the current Gross Margin % is 20.94% 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 Kangqiao Service Group (HKSE:02205) Overvalued in 2026?
Based on GuruFocus' analysis, Kangqiao Service Group stock appears to be undervalued.
The current stock price of HK$0.58 is trading 22.3% below its estimated GF Value™ of HK$0.74.
GuruFocus considers Kangqiao Service Group to be Modestly Undervalued.
Key valuation signals for HKSE:02205:
Gross Margin %: 20.94% (12% below median its 10-year median of 23.87)
GF Value™: HK$0.74 vs. price of HK$0.58 (22.3% below fair value)
Industry Position: 43.1% below the Real Estate median (#1206 of 1642)
No single metric tells the full story. See the HKSE:02205 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kangqiao Service Group Ltd is a reputable comprehensive property managements service provider. The group is principally engaged in provision of property management services, related value-added services and city services in the PRC. The company has derived all of its revenue from the PRC. The group derives majority of its revenue from Property management services.
61GF Score
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