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Gaoyu Finance GroupHKSE:08221 +37.88%60 Gross Margin % is 50.69% as of Mar. 2026, which is 16% below its 10-year median of 60.60. GuruFocus rates HKSE:08221 with a GF Score™ of 60/100 and a GF Value™ of HK$1.22 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 621 Capital Markets companies, Gaoyu Finance Group ranks better than 61.35% on this metric.
Gaoyu Finance Group (HKSE:08221) 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
Gaoyu Finance Group had a gross margin of 50.69% for the quarter that ended in Mar. 2026 => 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.
Gaoyu Finance Group Gross Margin % Related Terms
Gaoyu Finance Group Gross Margin % Historical Data
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The historical data trend for Gaoyu Finance Group'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.
HKSE:08221 vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, Gaoyu Finance 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.
Gaoyu Finance Group Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Gaoyu Finance Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gaoyu Finance 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.
Gaoyu Finance Group (HKSE:08221) has a Gross Margin % of 50.69% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Gaoyu Finance Group and its competitors. This is 16% below median its historical median of 60.60. According to the industry distribution chart, Gaoyu Finance Group ranks #240 out of 621 companies in the Capital Markets industry, placing it in the top 38.6%.
Is Gaoyu Finance Group's Gross Margin % too high?
Gaoyu Finance Group's current Gross Margin % of 50.69% is 16% below median its 10-year median of 60.60. The Capital Markets industry median Gross Margin % is 50.00. Gaoyu Finance Group's value of 50.69% is 1.4% above this industry median. Based on the distribution chart, Gaoyu Finance Group ranks #240 out of 621 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Gaoyu Finance Group has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gaoyu Finance Group's Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Gaoyu Finance Group ranks #240 out of 621 companies for Gross Margin %. This puts Gaoyu Finance Group in the upper half of its industry. The industry median Gross Margin % is 50.00. Gaoyu Finance Group's value of 50.69% is 1.4% above this benchmark. While the company's 10-year median is 60.60 vs. the industry median of 50.00, Gaoyu Finance Group 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 50.00, based on 621 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. Gaoyu Finance Group's current Gross Margin % of 50.69% is 1.4% 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 Gaoyu Finance Group and its competitors. For the Capital Markets industry, the median Gross Margin % is 50.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaoyu Finance Group's current Gross Margin % is 50.69%, which is 16% below median its own 10-year median of 60.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gaoyu Finance Group stock overvalued right now?
Based on GuruFocus' analysis, Gaoyu Finance Group (HKSE:08221) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.22, compared to a current price of HK$2.28 — trading 86.5% above its estimated fair value. The current Gross Margin % is 50.69%, which is 16% below median its 10-year median of 60.60 and 1.4% above the Capital Markets industry median of 50.00. Gaoyu Finance Group's overall GF Score™ is 60/100 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 Gaoyu Finance Group (HKSE:08221), the current Gross Margin % is 50.69% as of Mar. 2026. 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 Gaoyu Finance Group (HKSE:08221) Overvalued in 2026?
Based on GuruFocus' analysis, Gaoyu Finance Group stock appears to be overvalued.
The current stock price of HK$2.28 is trading 86.5% above its estimated GF Value™ of HK$1.22.
GuruFocus considers Gaoyu Finance Group to be Significantly Overvalued.
Key valuation signals for HKSE:08221:
Gross Margin %: 50.69% (16% below median its 10-year median of 60.60)
GF Value™: HK$1.22 vs. price of HK$2.28 (86.5% above fair value)
Industry Position: 1.4% above the Capital Markets median (#240 of 621)
No single metric tells the full story. See the HKSE:08221 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gaoyu Finance Group Ltd is an investment holding company. The company's operating segment includes Securities dealing and brokerage services; Placing and underwriting services; Financing services; Asset management services; Supply chain financing; Trust services; and Advisory and restructuring services. It operates in Hong Kong and its revenue is derived from its operations in Hong Kong.
60GF Score
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