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Basic Semiconductor CoHKSE:09971 -2.39%7 Gross Margin % is -10.88% as of Dec. 2025. GuruFocus rates HKSE:09971 with a GF Score™ of 7/100. The stock has 2 warning signs investors should review. Among 1,016 Semiconductors companies, Basic Semiconductor Co ranks worse than 97.05% on this metric.
Basic Semiconductor Co (HKSE:09971) 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
Basic Semiconductor Co had a gross margin of -10.88% for the quarter that ended in Dec. 2025 => 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.
Basic Semiconductor Co Gross Margin % Related Terms
Basic Semiconductor Co Gross Margin % Historical Data
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The historical data trend for Basic Semiconductor Co'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.
Basic Semiconductor Co Gross Margin % Chart
Basic Semiconductor Co Annual Data
Trend
Dec23
Dec24
Dec25
Gross Margin %
-59.64
-9.69
-10.88
Basic Semiconductor Co Semi-Annual Data
Dec23
Dec24
Dec25
Gross Margin %
-59.64
-9.69
-10.88
HKSE:09971 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Basic Semiconductor Co'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.
Basic Semiconductor Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Basic Semiconductor Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Basic Semiconductor Co'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.
Basic Semiconductor Co (HKSE:09971) has a Gross Margin % of -10.88% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Basic Semiconductor Co and its competitors. According to the industry distribution chart, Basic Semiconductor Co ranks #986 out of 1016 companies in the Semiconductors industry, placing it in the top 97%.
Is Basic Semiconductor Co's Gross Margin % too high?
Basic Semiconductor Co's current Gross Margin % is -10.88%. Based on the distribution chart, Basic Semiconductor Co ranks #986 out of 1016 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Basic Semiconductor Co has a GF Score™ of 7/100, reflecting its overall financial health beyond just this single metric.
How does Basic Semiconductor Co's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Basic Semiconductor Co ranks #986 out of 1016 companies for Gross Margin %. This places Basic Semiconductor Co in the lower half of its industry. The industry median Gross Margin % is 30.41. 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 30.41, based on 1,016 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. 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 Basic Semiconductor Co and its competitors. For the Semiconductors industry, the median Gross Margin % is 30.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Basic Semiconductor Co's current Gross Margin % is -10.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Basic Semiconductor Co stock overvalued right now?
Basic Semiconductor Co (HKSE:09971) has a current Gross Margin % of -10.88%. The current Gross Margin % is -10.88%. Basic Semiconductor Co's overall GF Score™ is 7/100 with 2 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 Basic Semiconductor Co (HKSE:09971), the current Gross Margin % is -10.88% 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.
Basic Semiconductor Co Ltd operates in the semiconductor power device industry, specializing in the research, development, manufacturing and sales of SiC power devices. The core business includes SiC chip design, wafer fabrication, module packaging, and gate driver design and testing. Its products serve a wide range of industries, including NEVs, renewable energy systems, energy storage systems, industrial control, data and server centers and rail transportations. The majority of the company's revenue is derived from the sales of SiC power modules in Mainland China.
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