Sing Lee Software (Group)HKSE:08076 Gross Margin % is 14.03% as of Dec. 2025, which is 21% below its 10-year median of 17.83. The stock has 3 warning signs investors should review. Among 2,681 Software companies, Sing Lee Software (Group) ranks worse than 92.91% on this metric.
Sing Lee Software (Group) (HKSE:08076) 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
Sing Lee Software (Group) had a gross margin of 14.03% 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.
Sing Lee Software (Group) Gross Margin % Related Terms
Sing Lee Software (Group) 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:08076 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Sing Lee Software (Group)'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.
Sing Lee Software (Group) Gross Margin % vs Software Industry
For the Software industry and Technology sector, Sing Lee Software (Group)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sing Lee Software (Group)'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.
Sing Lee Software (Group) (HKSE:08076) has a Gross Margin % of 14.03% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Sing Lee Software (Group) and its competitors. This is 21% below median its historical median of 17.83. Over the past decade, Sing Lee Software (Group)'s Gross Margin % has ranged from 0.97 to 47.94. According to the industry distribution chart, Sing Lee Software (Group) ranks #2491 out of 2681 companies in the Software industry, placing it in the top 92.9%.
Is Sing Lee Software (Group)'s Gross Margin % too high?
Sing Lee Software (Group)'s current Gross Margin % of 14.03% is 21% below median its 10-year median of 17.83. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 47.94. The Software industry median Gross Margin % is 40.41. Sing Lee Software (Group)'s value of 14.03% is 65.3% below this industry median. Based on the distribution chart, Sing Lee Software (Group) ranks #2491 out of 2681 companies in the Software industry, which is in the bottom quartile relative to peers.
How does Sing Lee Software (Group)'s Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Sing Lee Software (Group) ranks #2491 out of 2681 companies for Gross Margin %. This places Sing Lee Software (Group) in the lower half of its industry. The industry median Gross Margin % is 40.41. Sing Lee Software (Group)'s value of 14.03% is 65.3% below this benchmark. Historically, Sing Lee Software (Group)'s own Gross Margin % has ranged from 0.97 to 47.94 over the past decade. While the company's 10-year median is 17.83 vs. the industry median of 40.41, Sing Lee Software (Group) 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 40.41, based on 2,681 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. Sing Lee Software (Group)'s current Gross Margin % of 14.03% is 65.3% 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 Sing Lee Software (Group) and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sing Lee Software (Group)'s current Gross Margin % is 14.03%, which is 21% below median its own 10-year median of 17.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sing Lee Software (Group) stock overvalued right now?
Based on GuruFocus' analysis, Sing Lee Software (Group) (HKSE:08076) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.01, compared to a current price of HK$0.02 — trading 130% above its estimated fair value. The current Gross Margin % is 14.03%, which is 21% below median its 10-year median of 17.83 and 65.3% below the Software industry median of 40.41. 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 Sing Lee Software (Group) (HKSE:08076), the current Gross Margin % is 14.03% 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.
Sing Lee Software (Group) Ltd is engaged in the development and sales of information and network technologies and services to the financial industry in the People's Republic of China (the PRC). Its segments include Sales of software products, Sales of hardware products, and Provision of technical support and other services. It derives the majority of revenue from Provision of technical support and other services segment from the PRC.
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