Chung Lien Co (ROCO:5604) Gross Margin %: 82.48% (As of Dec. 2025) — Near Median

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ROCO:5604 Chung Lien Co Ltd ROCO:5604
75 GF Score
Price NT$30.40
GF Value NT$41.95
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Chung Lien Co Gross Margin %?

Chung Lien Co ROCO:5604 +0.33% 75 Gross Margin % is 82.48% as of Dec. 2025, which is 4% above its 10-year median of 79.56. GuruFocus rates ROCO:5604 with a GF Score™ of 75/100 and a GF Value™ of NT$41.95 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,641 Real Estate companies, Chung Lien Co ranks better than 89.46% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Chung Lien Co's Gross Profit for the three months ended in Dec. 2025 was NT$33.3 Mil. Chung Lien Co's Revenue for the three months ended in Dec. 2025 was NT$40.4 Mil. Therefore, Chung Lien Co's Gross Margin % for the quarter that ended in Dec. 2025 was 82.48%.


The historical rank and industry rank for Chung Lien Co's Gross Margin % or its related term are showing as below:

ROCO:5604' s Gross Margin % Range Over the Past 10 Years
Min: 28.48   Med: 79.56   Max: 82.49
Current: 81.94


During the past 13 years, the highest Gross Margin % of Chung Lien Co was 82.49%. The lowest was 28.48%. And the median was 79.56%.

ROCO:5604's Gross Margin % is ranked better than
89.46% of 1641 companies
in the Real Estate industry
Industry Median: 36.47 vs ROCO:5604: 81.94

Chung Lien Co had a gross margin of 82.48% for the quarter that ended in Dec. 2025 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Chung Lien Co was 1.50% per year.


Chung Lien Co  (ROCO:5604) 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

Chung Lien Co had a gross margin of 82.48% 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.


Chung Lien Co Gross Margin % Related Terms


Chung Lien Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Chung Lien 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.

Chung Lien Co Gross Margin % Chart

Chung Lien Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 80.48 81.65 81.74 82.49 81.94

Chung Lien Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 79.98 82.73 81.86 80.70 82.48

ROCO:5604 vs CBRE, BEKE, JLL: Gross Margin % Comparison

For the Real Estate Services subindustry, Chung Lien 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.


Chung Lien Co Gross Margin % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Chung Lien Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Chung Lien Co's Gross Margin % falls into.


ROCO:5604
75GF Score
Chung Lien Co Ltd ROCO:5604
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Chung Lien Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Chung Lien Co's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=130.6 / 159.396
=(Revenue - Cost of Goods Sold) / Revenue
=(159.396 - 28.785) / 159.396
=81.94 %

Chung Lien Co's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=33.3 / 40.388
=(Revenue - Cost of Goods Sold) / Revenue
=(40.388 - 7.075) / 40.388
=82.48 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 82.48% mean?
Chung Lien Co (ROCO:5604) has a Gross Margin % of 82.48% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Chung Lien Co and its competitors. This is near median its historical median of 79.56. Over the past decade, Chung Lien Co's Gross Margin % has ranged from 28.48 to 82.49. According to the industry distribution chart, Chung Lien Co ranks #173 out of 1641 companies in the Real Estate industry, placing it in the top 10.5%.
Is Chung Lien Co's Gross Margin % too high?
Chung Lien Co's current Gross Margin % of 82.48% is near median its 10-year median of 79.56. Over the past 10 years, this metric has ranged from a low of 28.48 to a high of 82.49. The Real Estate industry median Gross Margin % is 36.47. Chung Lien Co's value of 82.48% is 126.2% above this industry median. Based on the distribution chart, Chung Lien Co ranks #173 out of 1641 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Chung Lien Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chung Lien Co's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Chung Lien Co ranks #173 out of 1641 companies for Gross Margin %. This places Chung Lien Co in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.47. Chung Lien Co's value of 82.48% is 126.2% above this benchmark. Historically, Chung Lien Co's own Gross Margin % has ranged from 28.48 to 82.49 over the past decade. While the company's 10-year median is 79.56 vs. the industry median of 36.47, Chung Lien Co 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.47, based on 1,641 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. Chung Lien Co's current Gross Margin % of 82.48% is 126.2% 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 Chung Lien Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chung Lien Co's current Gross Margin % is 82.48%, which is near median its own 10-year median of 79.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chung Lien Co stock overvalued right now?
Based on GuruFocus' analysis, Chung Lien Co (ROCO:5604) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$41.95, compared to a current price of NT$30.40 — trading 27.5% below its estimated fair value. The current Gross Margin % is 82.48%, which is near median its 10-year median of 79.56 and 126.2% above the Real Estate industry median of 36.47. Chung Lien Co's overall GF Score™ is 75/100 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 Chung Lien Co (ROCO:5604), the current Gross Margin % is 82.48% 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 Chung Lien Co (ROCO:5604) Overvalued in 2026?

Based on GuruFocus' analysis, Chung Lien Co stock appears to be undervalued. The current stock price of NT$30.40 is trading 27.5% below its estimated GF Value™ of NT$41.95. GuruFocus considers Chung Lien Co to be Modestly Undervalued.

Key valuation signals for ROCO:5604:

  • Gross Margin %: 82.48% (near median its 10-year median of 79.56)
  • GF Value™: NT$41.95 vs. price of NT$30.40 (27.5% below fair value)
  • GF Score™: 75/100 with 4 warning signs
  • Industry Position: 126.2% above the Real Estate median (#173 of 1641)

No single metric tells the full story. See the ROCO:5604 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chung Lien Co Business Description

Address No. 7, Gongyequ 1ST Road, Xitun District, Taichung, TWN, 407018
Chung Lien Co Ltd, with its subsidiaries, is engaged in the leasing of real estate, retailing of computer information products and software, and information maintenance services.
75GF Score

Get the complete analysis for ROCO:5604

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$30.40
Price
NT$41.95
GF Value