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South China Vocational Education Group Co (HKSE:06913) 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
South China Vocational Education Group Co had a gross margin of 24.46% 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.
South China Vocational Education Group Co Gross Margin % Related Terms
South China Vocational Education Group Co 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.
South China Vocational Education Group Co Gross Margin % Chart
South China Vocational Education Group Co Annual Data
HKSE:06913 vs EDU, TAL, LAUR: Gross Margin % Comparison
For the Education & Training Services subindustry, South China Vocational Education Group 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.
South China Vocational Education Group Co Gross Margin % vs Education Industry
* 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.
South China Vocational Education Group Co (HKSE:06913) has a Gross Margin % of 24.46% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on South China Vocational Education Group Co and its competitors. This is 38% below median its historical median of 39.24. Over the past decade, South China Vocational Education Group Co's Gross Margin % has ranged from 27.78 to 47.04. According to the industry distribution chart, South China Vocational Education Group Co ranks #190 out of 244 companies in the Education industry, placing it in the top 77.9%.
Is South China Vocational Education Group Co's Gross Margin % too high?
South China Vocational Education Group Co's current Gross Margin % of 24.46% is 38% below median its 10-year median of 39.24. Over the past 10 years, this metric has ranged from a low of 27.78 to a high of 47.04. The Education industry median Gross Margin % is 47.93. South China Vocational Education Group Co's value of 24.46% is 49% below this industry median. Based on the distribution chart, South China Vocational Education Group Co ranks #190 out of 244 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, South China Vocational Education Group Co has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does South China Vocational Education Group Co's Gross Margin % compare to EDU and TAL?
According to the Education industry distribution chart, South China Vocational Education Group Co ranks #190 out of 244 companies for Gross Margin %. This places South China Vocational Education Group Co in the lower half of its industry. The industry median Gross Margin % is 47.93. South China Vocational Education Group Co's value of 24.46% is 49% below this benchmark. Historically, South China Vocational Education Group Co's own Gross Margin % has ranged from 27.78 to 47.04 over the past decade. While the company's 10-year median is 39.24 vs. the industry median of 47.93, South China Vocational Education Group 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 an Education company?
The median Gross Margin % among Education companies is 47.93, based on 244 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. South China Vocational Education Group Co's current Gross Margin % of 24.46% is 49% 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 South China Vocational Education Group Co and its competitors. For the Education industry, the median Gross Margin % is 47.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South China Vocational Education Group Co's current Gross Margin % is 24.46%, which is 38% below median its own 10-year median of 39.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South China Vocational Education Group Co stock overvalued right now?
Based on GuruFocus' analysis, South China Vocational Education Group Co (HKSE:06913) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.48, compared to a current price of HK$0.13 — trading 72.9% below its estimated fair value. The current Gross Margin % is 24.46%, which is 38% below median its 10-year median of 39.24 and 49% below the Education industry median of 47.93. South China Vocational Education Group Co's overall GF Score™ is 60/100 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 South China Vocational Education Group Co (HKSE:06913), the current Gross Margin % is 24.46% 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.
Is South China Vocational Education Group Co (HKSE:06913) Overvalued in 2026?
Based on GuruFocus' analysis, South China Vocational Education Group Co stock appears to be undervalued.
The current stock price of HK$0.13 is trading 72.9% below its estimated GF Value™ of HK$0.48.
GuruFocus considers South China Vocational Education Group Co to be Possible Value Trap.
Key valuation signals for HKSE:06913:
Gross Margin %: 24.46% (38% below median its 10-year median of 39.24)
GF Value™: HK$0.48 vs. price of HK$0.13 (72.9% below fair value)
Industry Position: 49% below the Education median (#190 of 244)
No single metric tells the full story. See the HKSE:06913 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
South China Vocational Education Group Co Ltd is an investment holding company. Along with its subsidiaries, it is engaged in providing private higher vocational education in the People's Republic of China (PRC). The Group's two core schools, Lingnan Vocational and Technical College and Lingnan Modern Technician College in Guangzhou and Qingyuan, offer several majors, covering TMT industries such as Internet, e-commerce, telecommunications, software, and animation, as well as emerging industries such as the health industry.
60GF Score
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