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Desun Real Estate Investment Services Group Co (HKSE:02270) 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
Desun Real Estate Investment Services Group Co had a gross margin of 22.23% 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.
Desun Real Estate Investment Services Group Co Gross Margin % Related Terms
Desun Real Estate Investment Services 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.
Desun Real Estate Investment Services Group Co Gross Margin % Chart
Desun Real Estate Investment Services Group Co Annual Data
HKSE:02270 vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Desun Real Estate Investment Services 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.
Desun Real Estate Investment Services Group Co Gross Margin % vs Real Estate Industry
* 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.
Desun Real Estate Investment Services Group Co (HKSE:02270) has a Gross Margin % of 22.23% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Desun Real Estate Investment Services Group Co and its competitors. This is 42% below median its historical median of 38.13. Over the past decade, Desun Real Estate Investment Services Group Co's Gross Margin % has ranged from 21.64 to 59.66. According to the industry distribution chart, Desun Real Estate Investment Services Group Co ranks #1184 out of 1643 companies in the Real Estate industry, placing it in the top 72.1%.
Is Desun Real Estate Investment Services Group Co's Gross Margin % too high?
Desun Real Estate Investment Services Group Co's current Gross Margin % of 22.23% is 42% below median its 10-year median of 38.13. Over the past 10 years, this metric has ranged from a low of 21.64 to a high of 59.66. The Real Estate industry median Gross Margin % is 36.31. Desun Real Estate Investment Services Group Co's value of 22.23% is 38.8% below this industry median. Based on the distribution chart, Desun Real Estate Investment Services Group Co ranks #1184 out of 1643 companies in the Real Estate industry, which is below the industry midpoint. Overall, Desun Real Estate Investment Services Group Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Desun Real Estate Investment Services Group Co's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Desun Real Estate Investment Services Group Co ranks #1184 out of 1643 companies for Gross Margin %. This places Desun Real Estate Investment Services Group Co in the lower half of its industry. The industry median Gross Margin % is 36.31. Desun Real Estate Investment Services Group Co's value of 22.23% is 38.8% below this benchmark. Historically, Desun Real Estate Investment Services Group Co's own Gross Margin % has ranged from 21.64 to 59.66 over the past decade. While the company's 10-year median is 38.13 vs. the industry median of 36.31, Desun Real Estate Investment Services 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.31, based on 1,643 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. Desun Real Estate Investment Services Group Co's current Gross Margin % of 22.23% is 38.8% 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 Desun Real Estate Investment Services Group Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Desun Real Estate Investment Services Group Co's current Gross Margin % is 22.23%, which is 42% below median its own 10-year median of 38.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Desun Real Estate Investment Services Group Co stock overvalued right now?
Based on GuruFocus' analysis, Desun Real Estate Investment Services Group Co (HKSE:02270) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$2.23, compared to a current price of HK$7.10 — trading 218.4% above its estimated fair value. The current Gross Margin % is 22.23%, which is 42% below median its 10-year median of 38.13 and 38.8% below the Real Estate industry median of 36.31. Desun Real Estate Investment Services Group Co's overall GF Score™ is 78/100 with 10 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 Desun Real Estate Investment Services Group Co (HKSE:02270), the current Gross Margin % is 22.23% 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 Desun Real Estate Investment Services Group Co (HKSE:02270) Overvalued in 2026?
Based on GuruFocus' analysis, Desun Real Estate Investment Services Group Co stock appears to be overvalued.
The current stock price of HK$7.10 is trading 218.4% above its estimated GF Value™ of HK$2.23.
GuruFocus considers Desun Real Estate Investment Services Group Co to be Significantly Overvalued.
Key valuation signals for HKSE:02270:
Gross Margin %: 22.23% (42% below median its 10-year median of 38.13)
GF Value™: HK$2.23 vs. price of HK$7.10 (218.4% above fair value)
Industry Position: 38.8% below the Real Estate median (#1184 of 1643)
No single metric tells the full story. See the HKSE:02270 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Desun Real Estate Investment Services Group Co Ltd is principally engaged in the provision of property management services and value-added services to property and non-property owners in China. The company's three business segments include property services, asset operation services, and investment and development. The Property Services has the majority of revenue. The majority of the company's revenue is generated in the PRC region.
78GF Score
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