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Baiwang CoHKSE:06657 -6.58%36 Gross Margin % is 38.36% as of Dec. 2025, which is 8% below its 10-year median of 41.53. GuruFocus rates HKSE:06657 with a GF Score™ of 36/100. The stock has 4 warning signs investors should review. Among 2,684 Software companies, Baiwang Co ranks better than 50.56% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Baiwang Co's Gross Profit for the
six
months ended in Dec. 2025 was HK$160.0 Mil. Baiwang Co's Revenue for the
six
months ended in Dec. 2025 was HK$417.1 Mil. Therefore, Baiwang Co's Gross Margin % for the quarter that ended in Dec. 2025 was 38.36%.
Warning Sign:
Baiwang Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.8%.
The historical rank and industry rank for Baiwang Co's Gross Margin % or its related term are showing as below:
HKSE:06657'
s Gross Margin % Range Over the Past 10 Years
Min: 39.56 Med: 41.53 Max: 47.64
Current: 40.59
During the past 6 years, the highestGross Margin % of Baiwang Co was 47.64%. The lowest was 39.56%. And the median was 41.53%.
HKSE:06657's Gross Margin % is ranked better than 50.56% of 2684
companies
in the Software industry
Industry Median: 40.115
vs HKSE:06657: 40.59
Baiwang Co had a gross margin of 38.36% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Baiwang Co was -2.80% per year.
Baiwang Co (HKSE:06657) 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
Baiwang Co had a gross margin of 38.36% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Baiwang Co Gross Margin % Related Terms
Baiwang Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Baiwang 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:06657 vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Baiwang 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.
Baiwang Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Baiwang Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Baiwang 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.
Baiwang Co (HKSE:06657) has a Gross Margin % of 38.36% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Baiwang Co and its competitors. This is near median its historical median of 41.53. Over the past decade, Baiwang Co's Gross Margin % has ranged from 39.56 to 47.64. According to the industry distribution chart, Baiwang Co ranks #1327 out of 2684 companies in the Software industry, placing it in the top 49.4%.
Is Baiwang Co's Gross Margin % too high?
Baiwang Co's current Gross Margin % of 38.36% is near median its 10-year median of 41.53. Over the past 10 years, this metric has ranged from a low of 39.56 to a high of 47.64. The Software industry median Gross Margin % is 40.12. Baiwang Co's value of 38.36% is 4.4% below this industry median. Based on the distribution chart, Baiwang Co ranks #1327 out of 2684 companies in the Software industry, which is above the industry midpoint. Overall, Baiwang Co has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Baiwang Co's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Baiwang Co ranks #1327 out of 2684 companies for Gross Margin %. This puts Baiwang Co in the upper half of its industry. The industry median Gross Margin % is 40.12. Baiwang Co's value of 38.36% is 4.4% below this benchmark. Historically, Baiwang Co's own Gross Margin % has ranged from 39.56 to 47.64 over the past decade. While the company's 10-year median is 41.53 vs. the industry median of 40.12, Baiwang Co 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 Software company?
The median Gross Margin % among Software companies is 40.12, based on 2,684 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. Baiwang Co's current Gross Margin % of 38.36% is 4.4% 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 Baiwang Co and its competitors. For the Software industry, the median Gross Margin % is 40.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Baiwang Co's current Gross Margin % is 38.36%, which is near median its own 10-year median of 41.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Baiwang Co stock overvalued right now?
Baiwang Co (HKSE:06657) has a current Gross Margin % of 38.36%. The current Gross Margin % is 38.36%, which is near median its 10-year median of 41.53 and 4.4% below the Software industry median of 40.12. Baiwang Co's overall GF Score™ is 36/100 with 4 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 Baiwang Co (HKSE:06657), the current Gross Margin % is 38.36% 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.
Baiwang Co Ltd is an enterprise digitalization solutions provider in China, focusing on offering cloud-based SaaS solutions and on-premises solutions for financial and tax digitalization solutions, data-driven analytics services as well as other enterprise through Baiwang Cloud platform empowering the enterprises to unlock greater data value, transform data into digital productivity, and accelerate intelligent upgrade across industries. It process a variety of transaction documents, including among others, invoices, receipts, bills, and other accounting records, that accurately reflect key business transactions of enterprises. The company derives all of its revenue from the PRC.
36GF Score
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