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New Concepts HoldingsHKSE:02221 -1.64%30 Gross Margin % is 16.26% as of Mar. 2026, which is 66% above its 10-year median of 9.77. GuruFocus rates HKSE:02221 with a GF Score™ of 30/100 and a GF Value™ of HK$0.93 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,729 Construction companies, New Concepts Holdings ranks worse than 77.04% on this metric.
New Concepts Holdings (HKSE:02221) 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
New Concepts Holdings had a gross margin of 16.26% for the quarter that ended in Mar. 2026 => 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.
New Concepts Holdings Gross Margin % Related Terms
New Concepts Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for New Concepts Holdings'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:02221 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, New Concepts 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.
New Concepts Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, New Concepts Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where New Concepts 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.
New Concepts Holdings (HKSE:02221) has a Gross Margin % of 16.26% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on New Concepts Holdings and its competitors. This is 66% above median its historical median of 9.77. According to the industry distribution chart, New Concepts Holdings ranks #1332 out of 1729 companies in the Construction industry, placing it in the top 77%.
Is New Concepts Holdings' Gross Margin % too high?
New Concepts Holdings' current Gross Margin % of 16.26% is 66% above median its 10-year median of 9.77. The Construction industry median Gross Margin % is 20.69. New Concepts Holdings' value of 16.26% is 21.4% below this industry median. Based on the distribution chart, New Concepts Holdings ranks #1332 out of 1729 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, New Concepts Holdings has a GF Score™ of 30/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does New Concepts Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, New Concepts Holdings ranks #1332 out of 1729 companies for Gross Margin %. This places New Concepts Holdings in the lower half of its industry. The industry median Gross Margin % is 20.69. New Concepts Holdings' value of 16.26% is 21.4% below this benchmark. While the company's 10-year median is 9.77 vs. the industry median of 20.69, New Concepts Holdings 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 Construction company?
The median Gross Margin % among Construction companies is 20.69, based on 1,729 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. New Concepts Holdings's current Gross Margin % of 16.26% is 21.4% 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 New Concepts Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Concepts Holdings's current Gross Margin % is 16.26%, which is 66% above median its own 10-year median of 9.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Concepts Holdings stock overvalued right now?
Based on GuruFocus' analysis, New Concepts Holdings (HKSE:02221) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.93, compared to a current price of HK$0.60 — trading 35.5% below its estimated fair value. The current Gross Margin % is 16.26%, which is 66% above median its 10-year median of 9.77 and 21.4% below the Construction industry median of 20.69. New Concepts Holdings' overall GF Score™ is 30/100 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 New Concepts Holdings (HKSE:02221), the current Gross Margin % is 16.26% 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 New Concepts Holdings (HKSE:02221) Overvalued in 2026?
Based on GuruFocus' analysis, New Concepts Holdings stock appears to be undervalued.
The current stock price of HK$0.60 is trading 35.5% below its estimated GF Value™ of HK$0.93.
GuruFocus considers New Concepts Holdings to be Possible Value Trap.
Key valuation signals for HKSE:02221:
Gross Margin %: 16.26% (66% above median its 10-year median of 9.77)
GF Value™: HK$0.93 vs. price of HK$0.60 (35.5% below fair value)
Industry Position: 21.4% below the Construction median (#1332 of 1729)
No single metric tells the full story. See the HKSE:02221 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Concepts Holdings Ltd is an investment holding company, which majorly focuses on foundation works, civil engineering, and general building services, and environmental protection projects, including kitchen waste treatment, environmental park development, and new energy materials in Mainland China. The company's operating segment includes Construction works and Environmental protection services. It generates maximum revenue from the Construction works segment. The Construction work segment is engaged in the provision of foundation works, civil engineering works, and general building works in Hong Kong. Geographically, it derives a majority of its revenue from Hong Kong and also has a presence in Mainland China.
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