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Hoe LeongSGX:H20 Gross Margin % is 22.45% as of Dec. 2025, which is 29% above its 10-year median of 17.38. The stock has 3 warning signs investors should review. Among 155 Industrial Distribution companies, Hoe Leong ranks worse than 76.13% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Hoe Leong's Gross Profit for the
six
months ended in Dec. 2025 was S$3.95 Mil. Hoe Leong's Revenue for the
six
months ended in Dec. 2025 was S$17.60 Mil. Therefore, Hoe Leong's Gross Margin % for the quarter that ended in Dec. 2025 was 22.45%.
The historical rank and industry rank for Hoe Leong's Gross Margin % or its related term are showing as below:
SGX:H20'
s Gross Margin % Range Over the Past 10 Years
Min: 7.64 Med: 17.38 Max: 24.92
Current: 15.48
During the past 13 years, the highestGross Margin % of Hoe Leong was 24.92%. The lowest was 7.64%. And the median was 17.38%.
SGX:H20's Gross Margin % is ranked worse than 76.13% of 155
companies
in the Industrial Distribution industry
Industry Median: 24.34
vs SGX:H20: 15.48
Hoe Leong had a gross margin of 22.45% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hoe Leong was 10.10% per year.
Hoe Leong (SGX:H20) 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
Hoe Leong had a gross margin of 22.45% 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.
Hoe Leong Gross Margin % Related Terms
Hoe Leong Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hoe Leong'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.
SGX:H20 vs GWW, FAST, FERG: Gross Margin % Comparison
For the Industrial Distribution subindustry, Hoe Leong'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.
Hoe Leong Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Hoe Leong's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hoe Leong'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.
Hoe Leong (SGX:H20) has a Gross Margin % of 22.45% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hoe Leong and its competitors. This is 29% above median its historical median of 17.38. Over the past decade, Hoe Leong's Gross Margin % has ranged from 7.64 to 24.92. According to the industry distribution chart, Hoe Leong ranks #118 out of 155 companies in the Industrial Distribution industry, placing it in the top 76.1%.
Is Hoe Leong's Gross Margin % too high?
Hoe Leong's current Gross Margin % of 22.45% is 29% above median its 10-year median of 17.38. Over the past 10 years, this metric has ranged from a low of 7.64 to a high of 24.92. The Industrial Distribution industry median Gross Margin % is 24.34. Hoe Leong's value of 22.45% is 7.8% below this industry median. Based on the distribution chart, Hoe Leong ranks #118 out of 155 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers.
How does Hoe Leong's Gross Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Hoe Leong ranks #118 out of 155 companies for Gross Margin %. This places Hoe Leong in the lower half of its industry. The industry median Gross Margin % is 24.34. Hoe Leong's value of 22.45% is 7.8% below this benchmark. Historically, Hoe Leong's own Gross Margin % has ranged from 7.64 to 24.92 over the past decade. While the company's 10-year median is 17.38 vs. the industry median of 24.34, Hoe Leong 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 Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.34, based on 155 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. Hoe Leong's current Gross Margin % of 22.45% is 7.8% 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 Hoe Leong and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hoe Leong's current Gross Margin % is 22.45%, which is 29% above median its own 10-year median of 17.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoe Leong stock overvalued right now?
Hoe Leong (SGX:H20) has a current Gross Margin % of 22.45%. The current Gross Margin % is 22.45%, which is 29% above median its 10-year median of 17.38 and 7.8% below the Industrial Distribution industry median of 24.34. 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 Hoe Leong (SGX:H20), the current Gross Margin % is 22.45% 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.
Hoe Leong Corp Ltd specializes in providing undercarriage products, equipment parts, and services for heavy equipment and industrial machinery. Its offerings include an extensive range of parts for bulldozers, excavators, wheel loaders, and off-the-road (OTR) mining dump trucks, such as track frames, track chains and groups, rollers, shoes, sprockets, grouser parts, idlers, and OTR tires. The Group's reportable segments are Design and manufacture, Trading and distribution, and Investment Holding. Maximum revenue is derived from the Design and manufacture segment, which designs, manufactures, and sells equipment parts for both heavy equipment and industrial machinery under in-house brands like KBJ, ROSSI, and MIZU. Geographically, it operates globally and derives key revenue from Australia.
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