Zhongzi International Holdings (HKSE:08118) Gross Margin %: 25.75% (As of Oct. 2025) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:08118 Zhongzi International Holdings Ltd HKSE:08118
46 GF Score
Price HK$0.13
GF Value HK$0.07
Valuation Significantly Overvalued
! 4 Warning Signs
View Full Analysis

What is Zhongzi International Holdings Gross Margin %?

Zhongzi International Holdings HKSE:08118 46 Gross Margin % is 25.75% as of Oct. 2025, which is 8% below its 10-year median of 27.88. GuruFocus rates HKSE:08118 with a GF Score™ of 46/100 and a GF Value™ of HK$0.07 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 418 Furnishings, Fixtures & Appliances companies, Zhongzi International Holdings ranks worse than 82.54% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Zhongzi International Holdings's Gross Profit for the six months ended in Oct. 2025 was HK$5.88 Mil. Zhongzi International Holdings's Revenue for the six months ended in Oct. 2025 was HK$22.85 Mil. Therefore, Zhongzi International Holdings's Gross Margin % for the quarter that ended in Oct. 2025 was 25.75%.

Warning Sign:

Zhongzi International Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -15.3%.


The historical rank and industry rank for Zhongzi International Holdings's Gross Margin % or its related term are showing as below:

HKSE:08118' s Gross Margin % Range Over the Past 10 Years
Min: 14.01   Med: 27.88   Max: 31.05
Current: 16.28


During the past 11 years, the highest Gross Margin % of Zhongzi International Holdings was 31.05%. The lowest was 14.01%. And the median was 27.88%.

HKSE:08118's Gross Margin % is ranked worse than
82.54% of 418 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 28.83 vs HKSE:08118: 16.28

Zhongzi International Holdings had a gross margin of 25.75% for the quarter that ended in Oct. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Zhongzi International Holdings was -15.30% per year.


Zhongzi International Holdings  (HKSE:08118) 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

Zhongzi International Holdings had a gross margin of 25.75% for the quarter that ended in Oct. 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.


Zhongzi International Holdings Gross Margin % Related Terms


Zhongzi International Holdings Gross Margin % Historical Data

* Premium members only.

The historical data trend for Zhongzi International Holdings'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.

Zhongzi International Holdings Gross Margin % Chart

Zhongzi International Holdings Annual Data
Trend Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24 Apr25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.48 22.19 15.80 14.62 14.01

Zhongzi International Holdings Semi-Annual Data
Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24 Oct24 Apr25 Oct25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.00 13.06 23.93 -19.70 25.75

HKSE:08118 vs SN, SGI, MHK: Gross Margin % Comparison

For the Furnishings, Fixtures & Appliances subindustry, Zhongzi International 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.


Zhongzi International Holdings Gross Margin % vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Zhongzi International Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zhongzi International Holdings's Gross Margin % falls into.


HKSE:08118
46GF Score
Zhongzi International Holdings Ltd HKSE:08118
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhongzi International Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Zhongzi International Holdings's Gross Margin for the fiscal year that ended in Apr. 2025 is calculated as

Gross Margin % (A: Apr. 2025 )=Gross Profit (A: Apr. 2025 ) / Revenue (A: Apr. 2025 )
=3.7 / 26.44
=(Revenue - Cost of Goods Sold) / Revenue
=(26.44 - 22.737) / 26.44
=14.01 %

Zhongzi International Holdings's Gross Margin for the quarter that ended in Oct. 2025 is calculated as


Gross Margin % (Q: Oct. 2025 )=Gross Profit (Q: Oct. 2025 ) / Revenue (Q: Oct. 2025 )
=5.9 / 22.851
=(Revenue - Cost of Goods Sold) / Revenue
=(22.851 - 16.967) / 22.851
=25.75 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 25.75% mean?
Zhongzi International Holdings (HKSE:08118) has a Gross Margin % of 25.75% as of Oct. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhongzi International Holdings and its competitors. This is near median its historical median of 27.88. Over the past decade, Zhongzi International Holdings' Gross Margin % has ranged from 14.01 to 31.05. According to the industry distribution chart, Zhongzi International Holdings ranks #345 out of 418 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 82.5%.
Is Zhongzi International Holdings' Gross Margin % too high?
Zhongzi International Holdings' current Gross Margin % of 25.75% is near median its 10-year median of 27.88. Over the past 10 years, this metric has ranged from a low of 14.01 to a high of 31.05. The Furnishings, Fixtures & Appliances industry median Gross Margin % is 28.83. Zhongzi International Holdings' value of 25.75% is 10.7% below this industry median. Based on the distribution chart, Zhongzi International Holdings ranks #345 out of 418 companies in the Furnishings, Fixtures & Appliances industry, which is in the bottom quartile relative to peers. Overall, Zhongzi International Holdings has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhongzi International Holdings' Gross Margin % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Zhongzi International Holdings ranks #345 out of 418 companies for Gross Margin %. This places Zhongzi International Holdings in the lower half of its industry. The industry median Gross Margin % is 28.83. Zhongzi International Holdings' value of 25.75% is 10.7% below this benchmark. Historically, Zhongzi International Holdings' own Gross Margin % has ranged from 14.01 to 31.05 over the past decade. While the company's 10-year median is 27.88 vs. the industry median of 28.83, Zhongzi International 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 Furnishings, Fixtures & Appliances company?
The median Gross Margin % among Furnishings, Fixtures & Appliances companies is 28.83, based on 418 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. Zhongzi International Holdings's current Gross Margin % of 25.75% is 10.7% 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 Zhongzi International Holdings and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Gross Margin % is 28.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongzi International Holdings's current Gross Margin % is 25.75%, which is near median its own 10-year median of 27.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongzi International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongzi International Holdings (HKSE:08118) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.07, compared to a current price of HK$0.13 — trading 84.3% above its estimated fair value. The current Gross Margin % is 25.75%, which is near median its 10-year median of 27.88 and 10.7% below the Furnishings, Fixtures & Appliances industry median of 28.83. Zhongzi International Holdings' overall GF Score™ is 46/100 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 Zhongzi International Holdings (HKSE:08118), the current Gross Margin % is 25.75% as of Oct. 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 Zhongzi International Holdings (HKSE:08118) Overvalued in 2026?

Based on GuruFocus' analysis, Zhongzi International Holdings stock appears to be overvalued. The current stock price of HK$0.13 is trading 84.3% above its estimated GF Value™ of HK$0.07. GuruFocus considers Zhongzi International Holdings to be Significantly Overvalued.

Key valuation signals for HKSE:08118:

  • Gross Margin %: 25.75% (near median its 10-year median of 27.88)
  • GF Value™: HK$0.07 vs. price of HK$0.13 (84.3% above fair value)
  • GF Score™: 46/100 with 4 warning signs
  • Industry Position: 10.7% below the Furnishings, Fixtures & Appliances median (#345 of 418)

No single metric tells the full story. See the HKSE:08118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhongzi International Holdings Business Description

Address 40 Hung To Road, A13, 2nd Floor, Fung Ming Building, Kowloon, Kwun Tong, Hong Kong, HKG
Zhongzi International Holdings Ltd, formerly known as China Capital International Holdings Ltd, is focused on selling LED decorative lighting and illumination products prominently to overseas customers. Its offerings include standard products as well as customized solutions for holiday-related projects. It serves various retailers, wholesalers, real estate developers, agricultural technology producers, and other sectors.
46GF Score

Get the complete analysis for HKSE:08118

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.13
Price
HK$0.07
GF Value