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KRP Development HoldingsHKSE:02421 56 Gross Margin % is 54.67% as of Sep. 2025, which is 25% below its 10-year median of 72.56. GuruFocus rates HKSE:02421 with a GF Score™ of 56/100 and a GF Value™ of HK$0.32 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,644 Real Estate companies, KRP Development Holdings ranks better than 67.03% on this metric.
HKSE:02421's Gross Margin % is ranked better than 67.03% of 1644
companies
in the Real Estate industry
Industry Median: 36.94
vs HKSE:02421: 53.21
KRP Development Holdings had a gross margin of 54.67% for the quarter that ended in Sep. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for KRP Development Holdings was -4.10% per year.
KRP Development Holdings (HKSE:02421) 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
KRP Development Holdings had a gross margin of 54.67% for the quarter that ended in Sep. 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.
KRP Development Holdings Gross Margin % Related Terms
KRP Development 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.
KRP Development Holdings Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, KRP Development 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.
KRP Development Holdings Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, KRP Development Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KRP Development 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.
KRP Development Holdings (HKSE:02421) has a Gross Margin % of 54.67% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on KRP Development Holdings and its competitors. This is 25% below median its historical median of 72.56. Over the past decade, KRP Development Holdings' Gross Margin % has ranged from 53.21 to 75.69. According to the industry distribution chart, KRP Development Holdings ranks #542 out of 1644 companies in the Real Estate industry, placing it in the top 33%.
Is KRP Development Holdings' Gross Margin % too high?
KRP Development Holdings' current Gross Margin % of 54.67% is 25% below median its 10-year median of 72.56. Over the past 10 years, this metric has ranged from a low of 53.21 to a high of 75.69. The Real Estate industry median Gross Margin % is 36.94. KRP Development Holdings' value of 54.67% is 48% above this industry median. Based on the distribution chart, KRP Development Holdings ranks #542 out of 1644 companies in the Real Estate industry, which is above the industry midpoint. Overall, KRP Development Holdings has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does KRP Development Holdings' Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, KRP Development Holdings ranks #542 out of 1644 companies for Gross Margin %. This puts KRP Development Holdings in the upper half of its industry. The industry median Gross Margin % is 36.94. KRP Development Holdings' value of 54.67% is 48% above this benchmark. Historically, KRP Development Holdings' own Gross Margin % has ranged from 53.21 to 75.69 over the past decade. While the company's 10-year median is 72.56 vs. the industry median of 36.94, KRP Development 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.94, based on 1,644 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. KRP Development Holdings's current Gross Margin % of 54.67% is 48% 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 KRP Development Holdings and its competitors. For the Real Estate industry, the median Gross Margin % is 36.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KRP Development Holdings's current Gross Margin % is 54.67%, which is 25% below median its own 10-year median of 72.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KRP Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, KRP Development Holdings (HKSE:02421) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.32, compared to a current price of HK$0.59 — trading 84.4% above its estimated fair value. The current Gross Margin % is 54.67%, which is 25% below median its 10-year median of 72.56 and 48% above the Real Estate industry median of 36.94. KRP Development Holdings' overall GF Score™ is 56/100 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 KRP Development Holdings (HKSE:02421), the current Gross Margin % is 54.67% as of Sep. 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 KRP Development Holdings (HKSE:02421) Overvalued in 2026?
Based on GuruFocus' analysis, KRP Development Holdings stock appears to be overvalued.
The current stock price of HK$0.59 is trading 84.4% above its estimated GF Value™ of HK$0.32.
GuruFocus considers KRP Development Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:02421:
Gross Margin %: 54.67% (25% below median its 10-year median of 72.56)
GF Value™: HK$0.32 vs. price of HK$0.59 (84.4% above fair value)
Industry Position: 48% above the Real Estate median (#542 of 1644)
No single metric tells the full story. See the HKSE:02421 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KRP Development Holdings Ltd is a boutique residential property developer. The firm is principally engaged in the development and sales of residential properties in Dongguan, Huizhou, and Foshan. It has developed two product series for homebuyers, namely, the Villas series, targeting middle-income and move-up homebuyers, and Mansion, targeting first-time homebuyers and retirees.
56GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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