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Lesi GroupHKSE:02540 -1.83%44 Gross Margin % is 5.89% as of Dec. 2025, which is 68% below its 10-year median of 18.25. GuruFocus rates HKSE:02540 with a GF Score™ of 44/100. The stock has 8 warning signs investors should review. Among 941 Media - Diversified companies, Lesi Group ranks worse than 92.35% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Lesi Group's Gross Profit for the
six
months ended in Dec. 2025 was HK$56 Mil. Lesi Group's Revenue for the
six
months ended in Dec. 2025 was HK$957 Mil. Therefore, Lesi Group's Gross Margin % for the quarter that ended in Dec. 2025 was 5.89%.
Warning Sign:
Lesi Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -19.8%.
The historical rank and industry rank for Lesi Group's Gross Margin % or its related term are showing as below:
HKSE:02540'
s Gross Margin % Range Over the Past 10 Years
Min: 5.44 Med: 18.25 Max: 20.92
Current: 5.44
During the past 6 years, the highestGross Margin % of Lesi Group was 20.92%. The lowest was 5.44%. And the median was 18.25%.
HKSE:02540's Gross Margin % is ranked worse than 92.35% of 941
companies
in the Media - Diversified industry
Industry Median: 38.96
vs HKSE:02540: 5.44
Lesi Group had a gross margin of 5.89% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lesi Group was -19.80% per year.
Lesi Group (HKSE:02540) 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
Lesi Group had a gross margin of 5.89% for the quarter that ended in Dec. 2025 => 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.
Lesi Group Gross Margin % Related Terms
Lesi Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Lesi 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:02540 vs APP, OMC, TTD: Gross Margin % Comparison
For the Advertising Agencies subindustry, Lesi 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.
Lesi Group Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Lesi Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lesi 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.
Lesi Group (HKSE:02540) has a Gross Margin % of 5.89% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lesi Group and its competitors. This is 68% below median its historical median of 18.25. Over the past decade, Lesi Group's Gross Margin % has ranged from 5.44 to 20.92. According to the industry distribution chart, Lesi Group ranks #869 out of 941 companies in the Media - Diversified industry, placing it in the top 92.3%.
Is Lesi Group's Gross Margin % too high?
Lesi Group's current Gross Margin % of 5.89% is 68% below median its 10-year median of 18.25. Over the past 10 years, this metric has ranged from a low of 5.44 to a high of 20.92. The Media - Diversified industry median Gross Margin % is 38.96. Lesi Group's value of 5.89% is 84.9% below this industry median. Based on the distribution chart, Lesi Group ranks #869 out of 941 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Lesi Group has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Lesi Group's Gross Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Lesi Group ranks #869 out of 941 companies for Gross Margin %. This places Lesi Group in the lower half of its industry. The industry median Gross Margin % is 38.96. Lesi Group's value of 5.89% is 84.9% below this benchmark. Historically, Lesi Group's own Gross Margin % has ranged from 5.44 to 20.92 over the past decade. While the company's 10-year median is 18.25 vs. the industry median of 38.96, Lesi 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.96, based on 941 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. Lesi Group's current Gross Margin % of 5.89% is 84.9% 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 Lesi Group and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lesi Group's current Gross Margin % is 5.89%, which is 68% below median its own 10-year median of 18.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lesi Group stock overvalued right now?
Lesi Group (HKSE:02540) has a current Gross Margin % of 5.89%. The current Gross Margin % is 5.89%, which is 68% below median its 10-year median of 18.25 and 84.9% below the Media - Diversified industry median of 38.96. Lesi Group's overall GF Score™ is 44/100 with 8 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 Lesi Group (HKSE:02540), the current Gross Margin % is 5.89% 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.
Lesi Group Ltd is a mobile advertising service provider in the PRC and mainly provide comprehensive mobile advertising services to its customers for marketing of their brands, products and/or services on media platforms operated by its media partners. The company's services include mobile marketing planning, traffic acquisition, production of ad creatives, ad placements, ad optimization, ad campaign management and ad distribution. The company derives revenue from Mobile advertising solutions services and Advertisement distribution services.
44GF Score
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