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Smart City Development Holdings (HKSE:08268) 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
Smart City Development Holdings had a gross margin of 3.64% for the quarter that ended in Mar. 2026 => 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.
Smart City Development Holdings Gross Margin % Related Terms
Smart City Development 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.
Smart City Development Holdings Gross Margin % Chart
HKSE:08268 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Smart City Development 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.
Smart City Development Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Smart City Development Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Smart City Development 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.
Smart City Development Holdings (HKSE:08268) has a Gross Margin % of 3.64% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Smart City Development Holdings and its competitors. This is 49% below median its historical median of 7.17. Over the past decade, Smart City Development Holdings' Gross Margin % has ranged from 3.06 to 15.35. According to the industry distribution chart, Smart City Development Holdings ranks #1617 out of 1729 companies in the Construction industry, placing it in the top 93.5%.
Is Smart City Development Holdings' Gross Margin % too high?
Smart City Development Holdings' current Gross Margin % of 3.64% is 49% below median its 10-year median of 7.17. Over the past 10 years, this metric has ranged from a low of 3.06 to a high of 15.35. The Construction industry median Gross Margin % is 20.70. Smart City Development Holdings' value of 3.64% is 82.4% below this industry median. Based on the distribution chart, Smart City Development Holdings ranks #1617 out of 1729 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Smart City Development Holdings has a GF Score™ of 39/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Smart City Development Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Smart City Development Holdings ranks #1617 out of 1729 companies for Gross Margin %. This places Smart City Development Holdings in the lower half of its industry. The industry median Gross Margin % is 20.70. Smart City Development Holdings' value of 3.64% is 82.4% below this benchmark. Historically, Smart City Development Holdings' own Gross Margin % has ranged from 3.06 to 15.35 over the past decade. While the company's 10-year median is 7.17 vs. the industry median of 20.70, Smart City Development 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 Construction company?
The median Gross Margin % among Construction companies is 20.70, based on 1,729 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. Smart City Development Holdings's current Gross Margin % of 3.64% is 82.4% 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 Smart City Development Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart City Development Holdings's current Gross Margin % is 3.64%, which is 49% below median its own 10-year median of 7.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart City Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, Smart City Development Holdings (HKSE:08268) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.37, compared to a current price of HK$0.19 — trading 48.6% below its estimated fair value. The current Gross Margin % is 3.64%, which is 49% below median its 10-year median of 7.17 and 82.4% below the Construction industry median of 20.70. Smart City Development Holdings' overall GF Score™ is 39/100 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 Smart City Development Holdings (HKSE:08268), the current Gross Margin % is 3.64% 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 Smart City Development Holdings (HKSE:08268) Overvalued in 2026?
Based on GuruFocus' analysis, Smart City Development Holdings stock appears to be undervalued.
The current stock price of HK$0.19 is trading 48.6% below its estimated GF Value™ of HK$0.37.
GuruFocus considers Smart City Development Holdings to be Possible Value Trap.
Key valuation signals for HKSE:08268:
Gross Margin %: 3.64% (49% below median its 10-year median of 7.17)
GF Value™: HK$0.37 vs. price of HK$0.19 (48.6% below fair value)
Industry Position: 82.4% below the Construction median (#1617 of 1729)
No single metric tells the full story. See the HKSE:08268 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smart City Development Holdings Ltd is involved in securities investment, money lending, property investment and construction business sectors. The company has four segments: the construction segment, which is the key revenue-generating business, involves various processes including, building construction works, electrical and mechanical engineering works and fitting-out works; the securities investment segment is engaged in investment in securities; the property investment business segment is engaged in the holding of investment properties; and the money lending business segment. It has a business presence in Hong Kong and Mainland China.
39GF 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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