Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Ching Lee HoldingsHKSE:03728 Gross Margin % is 5.19% as of Mar. 2026, which is 38% below its 10-year median of 8.33. The stock has 3 warning signs investors should review. Among 1,729 Construction companies, Ching Lee Holdings ranks worse than 91.56% on this metric.
Ching Lee Holdings (HKSE:03728) 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
Ching Lee Holdings had a gross margin of 5.19% for the quarter that ended in Mar. 2026 => 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.
Ching Lee Holdings Gross Margin % Related Terms
Ching Lee Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ching Lee Holdings'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:03728 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Ching Lee 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.
Ching Lee Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Ching Lee Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ching Lee 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.
Ching Lee Holdings (HKSE:03728) has a Gross Margin % of 5.19% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ching Lee Holdings and its competitors. This is 38% below median its historical median of 8.33. Over the past decade, Ching Lee Holdings' Gross Margin % has ranged from 4.52 to 13.03. According to the industry distribution chart, Ching Lee Holdings ranks #1583 out of 1729 companies in the Construction industry, placing it in the top 91.6%.
Is Ching Lee Holdings' Gross Margin % too high?
Ching Lee Holdings' current Gross Margin % of 5.19% is 38% below median its 10-year median of 8.33. Over the past 10 years, this metric has ranged from a low of 4.52 to a high of 13.03. The Construction industry median Gross Margin % is 20.77. Ching Lee Holdings' value of 5.19% is 75% below this industry median. Based on the distribution chart, Ching Lee Holdings ranks #1583 out of 1729 companies in the Construction industry, which is in the bottom quartile relative to peers.
How does Ching Lee Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Ching Lee Holdings ranks #1583 out of 1729 companies for Gross Margin %. This places Ching Lee Holdings in the lower half of its industry. The industry median Gross Margin % is 20.77. Ching Lee Holdings' value of 5.19% is 75% below this benchmark. Historically, Ching Lee Holdings' own Gross Margin % has ranged from 4.52 to 13.03 over the past decade. While the company's 10-year median is 8.33 vs. the industry median of 20.77, Ching Lee Holdings 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 Construction company?
The median Gross Margin % among Construction companies is 20.77, based on 1,729 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. Ching Lee Holdings's current Gross Margin % of 5.19% is 75% 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 Ching Lee Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ching Lee Holdings's current Gross Margin % is 5.19%, which is 38% below median its own 10-year median of 8.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ching Lee Holdings stock overvalued right now?
Based on GuruFocus' analysis, Ching Lee Holdings (HKSE:03728) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.08, compared to a current price of HK$0.06 — trading 28.8% below its estimated fair value. The current Gross Margin % is 5.19%, which is 38% below median its 10-year median of 8.33 and 75% below the Construction industry median of 20.77. 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 Ching Lee Holdings (HKSE:03728), the current Gross Margin % is 5.19% as of Mar. 2026. 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.
Ching Lee Holdings Ltd is an investment holding company. It is engaged in providing substructure building works services, superstructure building works services, and repair, maintenance, alteration, and addition works services. Substructure building works refer to building works about the parts of the structure below or above the ground level respectively while the repair, maintenance, alteration, and addition work services segment accounts for existing structing. The superstructure works projects consist of demolition and hoarding, site formation and foundation work and the RMAA works services segment. The majority of the company's revenue comes from the superstructure building work services. The group is based in Hong Kong.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:03728 has been successfully added to your 
