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Reconova Technologies CoHKSE:07656 +9.56%9 Gross Margin % is 37.72% as of Dec. 2025, which is 5% below its 10-year median of 39.79. GuruFocus rates HKSE:07656 with a GF Score™ of 9/100. The stock has 2 warning signs investors should review. Among 2,691 Software companies, Reconova Technologies Co ranks worse than 53.51% on this metric.
Reconova Technologies Co (HKSE:07656) 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
Reconova Technologies Co had a gross margin of 37.72% 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.
Reconova Technologies Co Gross Margin % Related Terms
Reconova Technologies 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.
Reconova Technologies Co Gross Margin % Chart
Reconova Technologies Co Annual Data
Trend
Dec23
Dec24
Dec25
Gross Margin %
40.77
39.79
37.72
Reconova Technologies Co Semi-Annual Data
Dec23
Dec24
Dec25
Gross Margin %
40.77
39.79
37.72
HKSE:07656 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Reconova Technologies 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.
Reconova Technologies Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Reconova Technologies Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Reconova Technologies 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.
Reconova Technologies Co (HKSE:07656) has a Gross Margin % of 37.72% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Reconova Technologies Co and its competitors. This is near median its historical median of 39.79. Over the past decade, Reconova Technologies Co's Gross Margin % has ranged from 37.72 to 40.77. According to the industry distribution chart, Reconova Technologies Co ranks #1440 out of 2691 companies in the Software industry, placing it in the top 53.5%.
Is Reconova Technologies Co's Gross Margin % too high?
Reconova Technologies Co's current Gross Margin % of 37.72% is near median its 10-year median of 39.79. Over the past 10 years, this metric has ranged from a low of 37.72 to a high of 40.77. The Software industry median Gross Margin % is 40.57. Reconova Technologies Co's value of 37.72% is 7% below this industry median. Based on the distribution chart, Reconova Technologies Co ranks #1440 out of 2691 companies in the Software industry, which is below the industry midpoint. Overall, Reconova Technologies Co has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Reconova Technologies Co's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Reconova Technologies Co ranks #1440 out of 2691 companies for Gross Margin %. This places Reconova Technologies Co in the lower half of its industry. The industry median Gross Margin % is 40.57. Reconova Technologies Co's value of 37.72% is 7% below this benchmark. Historically, Reconova Technologies Co's own Gross Margin % has ranged from 37.72 to 40.77 over the past decade. While the company's 10-year median is 39.79 vs. the industry median of 40.57, Reconova Technologies 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 40.57, based on 2,691 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. Reconova Technologies Co's current Gross Margin % of 37.72% is 7% 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 Reconova Technologies Co and its competitors. For the Software industry, the median Gross Margin % is 40.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reconova Technologies Co's current Gross Margin % is 37.72%, which is near median its own 10-year median of 39.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reconova Technologies Co stock overvalued right now?
Reconova Technologies Co (HKSE:07656) has a current Gross Margin % of 37.72%. The current Gross Margin % is 37.72%, which is near median its 10-year median of 39.79 and 7% below the Software industry median of 40.57. Reconova Technologies Co's overall GF Score™ is 9/100 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 Reconova Technologies Co (HKSE:07656), the current Gross Margin % is 37.72% 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.
Reconova Technologies Co Ltd is an AI company that provides visual AI technologies and products for enterprise clients. It is engaged in the research and development, design and sale of Visual Intelligents, commercial robots and intelligent passage devices. The company's product offerings include visual perception, visual cognition, and visual reasoning solutions applied across sectors including civil aviation, commercial spaces, and driving safety. The majority of the company's revenue is derived from the sale of Intelligent Civil Aviation, which covers the entire passenger journey including check-in, security screening, boarding, and customer service. Geographically, the maximum revenue is generated from the Chinese Mainland.
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