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China Netcom Technology Holdings (HKSE:08071) 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 Netcom Technology Holdings had a gross margin of 17.20% for the quarter that ended in Dec. 2025 => 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.
China Netcom Technology Holdings Gross Margin % Related Terms
China Netcom Technology Holdings 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.
China Netcom Technology Holdings Gross Margin % Chart
HKSE:08071 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, China Netcom Technology 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.
China Netcom Technology Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, China Netcom Technology Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Netcom Technology 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.
China Netcom Technology Holdings (HKSE:08071) has a Gross Margin % of 17.20% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Netcom Technology Holdings and its competitors. This is near median its historical median of 17.84. Over the past decade, China Netcom Technology Holdings' Gross Margin % has ranged from 1.15 to 85.46. According to the industry distribution chart, China Netcom Technology Holdings ranks #2328 out of 2691 companies in the Software industry, placing it in the top 86.5%.
Is China Netcom Technology Holdings' Gross Margin % too high?
China Netcom Technology Holdings' current Gross Margin % of 17.20% is near median its 10-year median of 17.84. Over the past 10 years, this metric has ranged from a low of 1.15 to a high of 85.46. The Software industry median Gross Margin % is 40.57. China Netcom Technology Holdings' value of 17.20% is 57.6% below this industry median. Based on the distribution chart, China Netcom Technology Holdings ranks #2328 out of 2691 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, China Netcom Technology Holdings has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Netcom Technology Holdings' Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, China Netcom Technology Holdings ranks #2328 out of 2691 companies for Gross Margin %. This places China Netcom Technology Holdings in the lower half of its industry. The industry median Gross Margin % is 40.57. China Netcom Technology Holdings' value of 17.20% is 57.6% below this benchmark. Historically, China Netcom Technology Holdings' own Gross Margin % has ranged from 1.15 to 85.46 over the past decade. While the company's 10-year median is 17.84 vs. the industry median of 40.57, China Netcom Technology 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 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. China Netcom Technology Holdings's current Gross Margin % of 17.20% is 57.6% 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 China Netcom Technology Holdings 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. China Netcom Technology Holdings's current Gross Margin % is 17.20%, which is near median its own 10-year median of 17.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Netcom Technology Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Netcom Technology Holdings (HKSE:08071) is currently considered Possible Value Trap. The stock's GF Value™ is HK$2.16, compared to a current price of HK$0.43 — trading 80.1% below its estimated fair value. The current Gross Margin % is 17.20%, which is near median its 10-year median of 17.84 and 57.6% below the Software industry median of 40.57. China Netcom Technology Holdings' overall GF Score™ is 55/100 with 7 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 Netcom Technology Holdings (HKSE:08071), the current Gross Margin % is 17.20% 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 China Netcom Technology Holdings (HKSE:08071) Overvalued in 2026?
Based on GuruFocus' analysis, China Netcom Technology Holdings stock appears to be undervalued.
The current stock price of HK$0.43 is trading 80.1% below its estimated GF Value™ of HK$2.16.
GuruFocus considers China Netcom Technology Holdings to be Possible Value Trap.
Key valuation signals for HKSE:08071:
Gross Margin %: 17.20% (near median its 10-year median of 17.84)
GF Value™: HK$2.16 vs. price of HK$0.43 (80.1% below fair value)
Industry Position: 57.6% below the Software median (#2328 of 2691)
No single metric tells the full story. See the HKSE:08071 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Netcom Technology Holdings Business Description
China Netcom Technology Holdings Ltd and its subsidiaries are engaged in the Smart Retail Business and Automotive Culture Business. The vast majority of its revenue is generated from Smart Retail Business, which is into the provision of new retail digital transformation solutions and new retail integrated software service platform to chain retailers and merchants, and extended services such as cloud services, omnichannel payment services, and SMS marketing services, etc. Geographically, the company has business operations in the PRC and Hong Kong, of which key revenue is derived from the PRC.
55GF Score
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