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Lianlian DigiTech CoHKSE:02598 +3.53%39 Gross Margin % is 49.13% as of Dec. 2025, which is 17% below its 10-year median of 59.45. GuruFocus rates HKSE:02598 with a GF Score™ of 39/100. The stock has 3 warning signs investors should review. Among 2,688 Software companies, Lianlian DigiTech Co ranks better than 61.61% on this metric.
Lianlian DigiTech Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6%.
The historical rank and industry rank for Lianlian DigiTech Co's Gross Margin % or its related term are showing as below:
HKSE:02598'
s Gross Margin % Range Over the Past 10 Years
Min: 50.37 Med: 59.45 Max: 68.24
Current: 50.37
During the past 6 years, the highestGross Margin % of Lianlian DigiTech Co was 68.24%. The lowest was 50.37%. And the median was 59.45%.
HKSE:02598's Gross Margin % is ranked better than 61.61% of 2688
companies
in the Software industry
Industry Median: 40.48
vs HKSE:02598: 50.37
Lianlian DigiTech Co had a gross margin of 49.13% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lianlian DigiTech Co was -6.00% per year.
Lianlian DigiTech Co (HKSE:02598) 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
Lianlian DigiTech Co had a gross margin of 49.13% 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.
Lianlian DigiTech Co Gross Margin % Related Terms
Lianlian DigiTech Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Lianlian DigiTech Co'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:02598 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Lianlian DigiTech 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.
Lianlian DigiTech Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Lianlian DigiTech Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lianlian DigiTech Co'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.
Lianlian DigiTech Co (HKSE:02598) has a Gross Margin % of 49.13% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lianlian DigiTech Co and its competitors. This is 17% below median its historical median of 59.45. Over the past decade, Lianlian DigiTech Co's Gross Margin % has ranged from 50.37 to 68.24. According to the industry distribution chart, Lianlian DigiTech Co ranks #1032 out of 2688 companies in the Software industry, placing it in the top 38.4%.
Is Lianlian DigiTech Co's Gross Margin % too high?
Lianlian DigiTech Co's current Gross Margin % of 49.13% is 17% below median its 10-year median of 59.45. Over the past 10 years, this metric has ranged from a low of 50.37 to a high of 68.24. The Software industry median Gross Margin % is 40.48. Lianlian DigiTech Co's value of 49.13% is 21.4% above this industry median. Based on the distribution chart, Lianlian DigiTech Co ranks #1032 out of 2688 companies in the Software industry, which is above the industry midpoint. Overall, Lianlian DigiTech Co has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Lianlian DigiTech Co's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Lianlian DigiTech Co ranks #1032 out of 2688 companies for Gross Margin %. This puts Lianlian DigiTech Co in the upper half of its industry. The industry median Gross Margin % is 40.48. Lianlian DigiTech Co's value of 49.13% is 21.4% above this benchmark. Historically, Lianlian DigiTech Co's own Gross Margin % has ranged from 50.37 to 68.24 over the past decade. While the company's 10-year median is 59.45 vs. the industry median of 40.48, Lianlian DigiTech Co 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 Software company?
The median Gross Margin % among Software companies is 40.48, based on 2,688 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. Lianlian DigiTech Co's current Gross Margin % of 49.13% is 21.4% 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 Lianlian DigiTech Co and its competitors. For the Software industry, the median Gross Margin % is 40.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lianlian DigiTech Co's current Gross Margin % is 49.13%, which is 17% below median its own 10-year median of 59.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianlian DigiTech Co stock overvalued right now?
Lianlian DigiTech Co (HKSE:02598) has a current Gross Margin % of 49.13%. The current Gross Margin % is 49.13%, which is 17% below median its 10-year median of 59.45 and 21.4% above the Software industry median of 40.48. Lianlian DigiTech Co's overall GF Score™ is 39/100 with 3 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 Lianlian DigiTech Co (HKSE:02598), the current Gross Margin % is 49.13% 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.
Lianlian DigiTech Co Ltd and its subsidiaries are engaged in the provision of digital payment services and value-added services across the world. Digital payment services encompass international and domestic payments and include various products such as pay-in, payout, acquiring, foreign exchange, virtual bank card, and payment aggregation services. By integrating AI-driven intelligence across its end-to-end service chain, the Group works to optimize transaction risk management and improve customer service. The Group's reportable segments are: Global payment, Domestic payment, Value-added services, and Others. Maximum revenue is derived from the Global payment segment, which helps merchants who sell their goods on e-commerce platforms globally and regionally to repatriate their funds.
39GF Score
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