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China Information Technology Development (HKSE:08178) 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 Information Technology Development had a gross margin of 49.19% for the quarter that ended in Dec. 2025 => Durable 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 Information Technology Development Gross Margin % Related Terms
China Information Technology Development 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 Information Technology Development Gross Margin % Chart
China Information Technology Development Annual Data
HKSE:08178 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, China Information Technology Development'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 Information Technology Development Gross Margin % vs Software 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.
China Information Technology Development (HKSE:08178) has a Gross Margin % of 49.19% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Information Technology Development and its competitors. This is 36% above median its historical median of 36.04. Over the past decade, China Information Technology Development's Gross Margin % has ranged from 22.26 to 53.99. According to the industry distribution chart, China Information Technology Development ranks #955 out of 2690 companies in the Software industry, placing it in the top 35.5%.
Is China Information Technology Development's Gross Margin % too high?
China Information Technology Development's current Gross Margin % of 49.19% is 36% above median its 10-year median of 36.04. Over the past 10 years, this metric has ranged from a low of 22.26 to a high of 53.99. The Software industry median Gross Margin % is 40.56. China Information Technology Development's value of 49.19% is 21.3% above this industry median. Based on the distribution chart, China Information Technology Development ranks #955 out of 2690 companies in the Software industry, which is above the industry midpoint. Overall, China Information Technology Development has a GF Score™ of 29/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Information Technology Development's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, China Information Technology Development ranks #955 out of 2690 companies for Gross Margin %. This puts China Information Technology Development in the upper half of its industry. The industry median Gross Margin % is 40.56. China Information Technology Development's value of 49.19% is 21.3% above this benchmark. Historically, China Information Technology Development's own Gross Margin % has ranged from 22.26 to 53.99 over the past decade. While the company's 10-year median is 36.04 vs. the industry median of 40.56, China Information Technology Development has consistently been above 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 40.56, based on 2,690 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 Information Technology Development's current Gross Margin % of 49.19% is 21.3% above 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 Information Technology Development and its competitors. For the Software industry, the median Gross Margin % is 40.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Information Technology Development's current Gross Margin % is 49.19%, which is 36% above median its own 10-year median of 36.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Information Technology Development stock overvalued right now?
Based on GuruFocus' analysis, China Information Technology Development (HKSE:08178) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.70, compared to a current price of HK$0.18 — trading 74.9% below its estimated fair value. The current Gross Margin % is 49.19%, which is 36% above median its 10-year median of 36.04 and 21.3% above the Software industry median of 40.56. China Information Technology Development's overall GF Score™ is 29/100 with 6 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 Information Technology Development (HKSE:08178), the current Gross Margin % is 49.19% 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 Information Technology Development (HKSE:08178) Overvalued in 2026?
Based on GuruFocus' analysis, China Information Technology Development stock appears to be undervalued.
The current stock price of HK$0.18 is trading 74.9% below its estimated GF Value™ of HK$0.70.
GuruFocus considers China Information Technology Development to be Possible Value Trap.
Key valuation signals for HKSE:08178:
Gross Margin %: 49.19% (36% above median its 10-year median of 36.04)
GF Value™: HK$0.70 vs. price of HK$0.18 (74.9% below fair value)
Industry Position: 21.3% above the Software median (#955 of 2690)
No single metric tells the full story. See the HKSE:08178 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Information Technology Development Ltd is an investment holding company. The company and its subsidiaries are principally engaged in provision of system integration and related support services, provision of IT infrastructure solutions and maintenance services, rental of properties and securities trading. It operates in three reportable segments: i) provision of IT infrastructure solutions and maintenance services (IT solutions and maintenance); ii) securities investments; and iii) rental of properties. It generates the majority of revenue from the IT solutions and maintenance segment. Geographically, the maximum revenue is generated from Hong Kong and the rest from the PRC except Hong Kong.
29GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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