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China International Capital (HKSE:03908) 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
China International Capital had a gross margin of 81.91% for the quarter that ended in Jun. 2026 => 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.
China International Capital Gross Margin % Related Terms
China International Capital 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.
HKSE:03908 vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, China International Capital'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.
China International Capital Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, China International Capital's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China International Capital'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.
China International Capital (HKSE:03908) has a Gross Margin % of 81.91% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China International Capital and its competitors. This is 29% above median its historical median of 63.74. Over the past decade, China International Capital's Gross Margin % has ranged from 53.87 to 69.49. According to the industry distribution chart, China International Capital ranks #184 out of 618 companies in the Capital Markets industry, placing it in the top 29.8%.
Is China International Capital's Gross Margin % too high?
China International Capital's current Gross Margin % of 81.91% is 29% above median its 10-year median of 63.74. Over the past 10 years, this metric has ranged from a low of 53.87 to a high of 69.49. The Capital Markets industry median Gross Margin % is 48.86. China International Capital's value of 81.91% is 67.6% above this industry median. Based on the distribution chart, China International Capital ranks #184 out of 618 companies in the Capital Markets industry, which is above the industry midpoint. Overall, China International Capital has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China International Capital's Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, China International Capital ranks #184 out of 618 companies for Gross Margin %. This puts China International Capital in the upper half of its industry. The industry median Gross Margin % is 48.86. China International Capital's value of 81.91% is 67.6% above this benchmark. Historically, China International Capital's own Gross Margin % has ranged from 53.87 to 69.49 over the past decade. While the company's 10-year median is 63.74 vs. the industry median of 48.86, China International Capital 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 48.86, based on 618 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. China International Capital's current Gross Margin % of 81.91% is 67.6% 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 China International Capital and its competitors. For the Capital Markets industry, the median Gross Margin % is 48.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China International Capital's current Gross Margin % is 81.91%, which is 29% above median its own 10-year median of 63.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China International Capital stock overvalued right now?
Based on GuruFocus' analysis, China International Capital (HKSE:03908) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$16.60, compared to a current price of HK$20.30 — trading 22.3% above its estimated fair value. The current Gross Margin % is 81.91%, which is 29% above median its 10-year median of 63.74 and 67.6% above the Capital Markets industry median of 48.86. China International Capital's overall GF Score™ is 76/100 with 2 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 China International Capital (HKSE:03908), the current Gross Margin % is 81.91% as of Jun. 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.
Is China International Capital (HKSE:03908) Overvalued in 2026?
Based on GuruFocus' analysis, China International Capital stock appears to be overvalued.
The current stock price of HK$20.30 is trading 22.3% above its estimated GF Value™ of HK$16.60.
GuruFocus considers China International Capital to be Modestly Overvalued.
Key valuation signals for HKSE:03908:
Gross Margin %: 81.91% (29% above median its 10-year median of 63.74)
GF Value™: HK$16.60 vs. price of HK$20.30 (22.3% above fair value)
Industry Position: 67.6% above the Capital Markets median (#184 of 618)
No single metric tells the full story. See the HKSE:03908 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China International Capital Corp Ltd is a capital market operations company based in China. Its business is carried out through investment banking, the equities segment, asset management, the FICC segment, wealth management, and private equity segments. The Others segment comprises other business departments, as well as middle and back offices. The company derives its earnings predominantly from China, with the remainder coming from overseas. It generates the majority of its revenue from the wealth management segment.
76GF 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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