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Neutech GroupHKSE:09616 +0.23%84 Gross Margin % is 45.30% as of Dec. 2025, which is 5% above its 10-year median of 43.06. GuruFocus rates HKSE:09616 with a GF Score™ of 84/100 and a GF Value™ of HK$3.46 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 244 Education companies, Neutech Group ranks worse than 57.38% on this metric.
Neutech Group (HKSE:09616) 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
Neutech Group had a gross margin of 45.30% 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.
Neutech Group Gross Margin % Related Terms
Neutech Group Gross Margin % Historical Data
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The historical data trend for Neutech 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:09616 vs EDU, TAL, LAUR: Gross Margin % Comparison
For the Education & Training Services subindustry, Neutech 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.
Neutech Group Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Neutech Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Neutech 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.
Neutech Group (HKSE:09616) has a Gross Margin % of 45.30% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Neutech Group and its competitors. This is near median its historical median of 43.06. Over the past decade, Neutech Group's Gross Margin % has ranged from 31.91 to 48.06. According to the industry distribution chart, Neutech Group ranks #140 out of 244 companies in the Education industry, placing it in the top 57.4%.
Is Neutech Group's Gross Margin % too high?
Neutech Group's current Gross Margin % of 45.30% is near median its 10-year median of 43.06. Over the past 10 years, this metric has ranged from a low of 31.91 to a high of 48.06. The Education industry median Gross Margin % is 48.02. Neutech Group's value of 45.30% is 5.7% below this industry median. Based on the distribution chart, Neutech Group ranks #140 out of 244 companies in the Education industry, which is below the industry midpoint. Overall, Neutech Group has a GF Score™ of 84/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Neutech Group's Gross Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Neutech Group ranks #140 out of 244 companies for Gross Margin %. This places Neutech Group in the lower half of its industry. The industry median Gross Margin % is 48.02. Neutech Group's value of 45.30% is 5.7% below this benchmark. Historically, Neutech Group's own Gross Margin % has ranged from 31.91 to 48.06 over the past decade. While the company's 10-year median is 43.06 vs. the industry median of 48.02, Neutech 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 an Education company?
The median Gross Margin % among Education companies is 48.02, based on 244 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. Neutech Group's current Gross Margin % of 45.30% is 5.7% 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 Neutech Group and its competitors. For the Education industry, the median Gross Margin % is 48.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neutech Group's current Gross Margin % is 45.30%, which is near median its own 10-year median of 43.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neutech Group stock overvalued right now?
Based on GuruFocus' analysis, Neutech Group (HKSE:09616) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.46, compared to a current price of HK$2.14 — trading 38.2% below its estimated fair value. The current Gross Margin % is 45.30%, which is near median its 10-year median of 43.06 and 5.7% below the Education industry median of 48.02. Neutech Group's overall GF Score™ is 84/100 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 Neutech Group (HKSE:09616), the current Gross Margin % is 45.30% 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 Neutech Group (HKSE:09616) Overvalued in 2026?
Based on GuruFocus' analysis, Neutech Group stock appears to be undervalued.
The current stock price of HK$2.14 is trading 38.2% below its estimated GF Value™ of HK$3.46.
GuruFocus considers Neutech Group to be Possible Value Trap.
Key valuation signals for HKSE:09616:
Gross Margin %: 45.30% (near median its 10-year median of 43.06)
GF Value™: HK$3.46 vs. price of HK$2.14 (38.2% below fair value)
Industry Position: 5.7% below the Education median (#140 of 244)
No single metric tells the full story. See the HKSE:09616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Neutech Group Ltd is a China-based investment holding company principally engaged in providing full-time formal higher education services, continuing education services, as well as education resources and apprenticeship programmes. Its full-time formal higher education services and continuing education services are operated by three universities and eight training schools. Its education resources and apprenticeship programme are offered by few of its subsidiaries. Its operating segments are as follows: education services; medical services; industry management and services; and elderly care technology and services. It generates maximum revenue from Education services segment. The Group operated within one geographical location and all of its revenue is also generated from Chinese mainland.
84GF Score
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