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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.
Adicon HoldingsHKSE:09860 -10.96%75 Gross Margin % is 36.41% as of Dec. 2025, which is 9% below its 10-year median of 39.87. GuruFocus rates HKSE:09860 with a GF Score™ of 75/100 and a GF Value™ of HK$7.19 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 194 Medical Diagnostics & Research companies, Adicon Holdings ranks worse than 67.53% on this metric.
Adicon Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for Adicon Holdings's Gross Margin % or its related term are showing as below:
HKSE:09860'
s Gross Margin % Range Over the Past 10 Years
Min: 36.1 Med: 39.87 Max: 43.49
Current: 36.1
During the past 6 years, the highestGross Margin % of Adicon Holdings was 43.49%. The lowest was 36.10%. And the median was 39.87%.
HKSE:09860's Gross Margin % is ranked worse than 67.53% of 194
companies
in the Medical Diagnostics & Research industry
Industry Median: 51.14
vs HKSE:09860: 36.10
Adicon Holdings had a gross margin of 36.41% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Adicon Holdings was -2.50% per year.
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
Adicon Holdings had a gross margin of 36.41% for the quarter that ended in Dec. 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.
Adicon Holdings Gross Margin % Related Terms
Adicon Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Adicon 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.
HKSE:09860 vs TMO, DHR, IDXX: Gross Margin % Comparison
For the Diagnostics & Research subindustry, Adicon 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.
Adicon Holdings Gross Margin % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Adicon Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Adicon 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.
Adicon Holdings (HKSE:09860) has a Gross Margin % of 36.41% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Adicon Holdings and its competitors. This is near median its historical median of 39.87. Over the past decade, Adicon Holdings' Gross Margin % has ranged from 36.10 to 43.49. According to the industry distribution chart, Adicon Holdings ranks #131 out of 194 companies in the Medical Diagnostics & Research industry, placing it in the top 67.5%.
Is Adicon Holdings' Gross Margin % too high?
Adicon Holdings' current Gross Margin % of 36.41% is near median its 10-year median of 39.87. Over the past 10 years, this metric has ranged from a low of 36.10 to a high of 43.49. The Medical Diagnostics & Research industry median Gross Margin % is 51.14. Adicon Holdings' value of 36.41% is 28.8% below this industry median. Based on the distribution chart, Adicon Holdings ranks #131 out of 194 companies in the Medical Diagnostics & Research industry, which is below the industry midpoint. Overall, Adicon Holdings has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Adicon Holdings' Gross Margin % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Adicon Holdings ranks #131 out of 194 companies for Gross Margin %. This places Adicon Holdings in the lower half of its industry. The industry median Gross Margin % is 51.14. Adicon Holdings' value of 36.41% is 28.8% below this benchmark. Historically, Adicon Holdings' own Gross Margin % has ranged from 36.10 to 43.49 over the past decade. While the company's 10-year median is 39.87 vs. the industry median of 51.14, Adicon 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 Medical Diagnostics & Research company?
The median Gross Margin % among Medical Diagnostics & Research companies is 51.14, based on 194 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. Adicon Holdings's current Gross Margin % of 36.41% is 28.8% 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 Adicon Holdings and its competitors. For the Medical Diagnostics & Research industry, the median Gross Margin % is 51.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adicon Holdings's current Gross Margin % is 36.41%, which is near median its own 10-year median of 39.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adicon Holdings stock overvalued right now?
Based on GuruFocus' analysis, Adicon Holdings (HKSE:09860) is currently considered Possible Value Trap. The stock's GF Value™ is HK$7.19, compared to a current price of HK$3.33 — trading 53.7% below its estimated fair value. The current Gross Margin % is 36.41%, which is near median its 10-year median of 39.87 and 28.8% below the Medical Diagnostics & Research industry median of 51.14. Adicon Holdings' overall GF Score™ is 75/100 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 Adicon Holdings (HKSE:09860), the current Gross Margin % is 36.41% 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 Adicon Holdings (HKSE:09860) Overvalued in 2026?
Based on GuruFocus' analysis, Adicon Holdings stock appears to be undervalued.
The current stock price of HK$3.33 is trading 53.7% below its estimated GF Value™ of HK$7.19.
GuruFocus considers Adicon Holdings to be Possible Value Trap.
Key valuation signals for HKSE:09860:
Gross Margin %: 36.41% (near median its 10-year median of 39.87)
GF Value™: HK$7.19 vs. price of HK$3.33 (53.7% below fair value)
Industry Position: 28.8% below the Medical Diagnostics & Research median (#131 of 194)
No single metric tells the full story. See the HKSE:09860 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adicon Holdings Ltd is a ICL service provider in China. It offers comprehensive testing services to hospitals and health check centers through an integrated network of self-operated laboratories across China. Its testing services platform includes clinical laboratories, pathology laboratories, reproductive genetics laboratories, gene laboratories, and mass spectrometry laboratories, consisting of over 4,000 medical diagnostic tests, the introduction of over 300 new high-end diagnostic tests.
75GF Score
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