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Zibuyu GroupHKSE:02420 +4.21%92 Gross Margin % is 74.60% as of Dec. 2025, which is 0% above its 10-year median of 74.32. GuruFocus rates HKSE:02420 with a GF Score™ of 92/100 and a GF Value™ of HK$6.13 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,119 Retail - Cyclical companies, Zibuyu Group ranks better than 95.71% on this metric.
The historical rank and industry rank for Zibuyu Group's Gross Margin % or its related term are showing as below:
HKSE:02420'
s Gross Margin % Range Over the Past 10 Years
Min: 65.17 Med: 74.32 Max: 76.57
Current: 74.83
During the past 7 years, the highestGross Margin % of Zibuyu Group was 76.57%. The lowest was 65.17%. And the median was 74.32%.
HKSE:02420's Gross Margin % is ranked better than 95.71% of 1119
companies
in the Retail - Cyclical industry
Industry Median: 36.29
vs HKSE:02420: 74.83
Zibuyu Group had a gross margin of 74.60% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zibuyu Group was -0.10% per year.
Zibuyu Group (HKSE:02420) 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
Zibuyu Group had a gross margin of 74.60% for the quarter that ended in Dec. 2025 => 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.
Zibuyu Group Gross Margin % Related Terms
Zibuyu Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zibuyu 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:02420 vs AMZN, BABA, PDD: Gross Margin % Comparison
For the Internet Retail subindustry, Zibuyu 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.
Zibuyu Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Zibuyu Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zibuyu 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.
Zibuyu Group (HKSE:02420) has a Gross Margin % of 74.60% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zibuyu Group and its competitors. This is near median its historical median of 74.32. Over the past decade, Zibuyu Group's Gross Margin % has ranged from 65.17 to 76.57. According to the industry distribution chart, Zibuyu Group ranks #48 out of 1119 companies in the Retail - Cyclical industry, placing it in the top 4.3%.
Is Zibuyu Group's Gross Margin % too high?
Zibuyu Group's current Gross Margin % of 74.60% is near median its 10-year median of 74.32. Over the past 10 years, this metric has ranged from a low of 65.17 to a high of 76.57. The Retail - Cyclical industry median Gross Margin % is 36.29. Zibuyu Group's value of 74.60% is 105.6% above this industry median. Based on the distribution chart, Zibuyu Group ranks #48 out of 1119 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Zibuyu Group has a GF Score™ of 92/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zibuyu Group's Gross Margin % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Zibuyu Group ranks #48 out of 1119 companies for Gross Margin %. This places Zibuyu Group in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.29. Zibuyu Group's value of 74.60% is 105.6% above this benchmark. Historically, Zibuyu Group's own Gross Margin % has ranged from 65.17 to 76.57 over the past decade. While the company's 10-year median is 74.32 vs. the industry median of 36.29, Zibuyu Group 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.29, based on 1,119 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. Zibuyu Group's current Gross Margin % of 74.60% is 105.6% 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 Zibuyu Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zibuyu Group's current Gross Margin % is 74.60%, which is near median its own 10-year median of 74.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zibuyu Group stock overvalued right now?
Based on GuruFocus' analysis, Zibuyu Group (HKSE:02420) is currently considered Possible Value Trap. The stock's GF Value™ is HK$6.13, compared to a current price of HK$3.96 — trading 35.4% below its estimated fair value. The current Gross Margin % is 74.60%, which is near median its 10-year median of 74.32 and 105.6% above the Retail - Cyclical industry median of 36.29. Zibuyu Group's overall GF Score™ is 92/100 with 4 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 Zibuyu Group (HKSE:02420), the current Gross Margin % is 74.60% 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 Zibuyu Group (HKSE:02420) Overvalued in 2026?
Based on GuruFocus' analysis, Zibuyu Group stock appears to be undervalued.
The current stock price of HK$3.96 is trading 35.4% below its estimated GF Value™ of HK$6.13.
GuruFocus considers Zibuyu Group to be Possible Value Trap.
Key valuation signals for HKSE:02420:
Gross Margin %: 74.60% (near median its 10-year median of 74.32)
GF Value™: HK$6.13 vs. price of HK$3.96 (35.4% below fair value)
Industry Position: 105.6% above the Retail - Cyclical median (#48 of 1119)
No single metric tells the full story. See the HKSE:02420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zibuyu Group Ltd is an investment holding company, and its subsidiaries are engaged in the design, procurement, and sale of apparel, footwear, and related products. The group sources products from OEM suppliers based on its designs and sells them globally through third-party e-commerce platforms and its self-operated online stores. Its sales channels include platforms such as Amazon, TikTok, Temu, and other third-party e-commerce platforms, as well as its own online stores. Its geographical segments include North America, Asia, Europe, and Others.
92GF Score
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