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Khong GuanSGX:K03 67 Gross Margin % is 9.27% as of Jan. 2026, which is 5% below its 10-year median of 9.73. GuruFocus rates SGX:K03 with a GF Score™ of 67/100 and a GF Value™ of S$1.02 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 306 Retail - Defensive companies, Khong Guan ranks worse than 84.64% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Khong Guan's Gross Profit for the
six
months ended in Jan. 2026 was S$3.55 Mil. Khong Guan's Revenue for the
six
months ended in Jan. 2026 was S$38.27 Mil. Therefore, Khong Guan's Gross Margin % for the quarter that ended in Jan. 2026 was 9.27%.
Warning Sign:
Khong Guan Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Khong Guan's Gross Margin % or its related term are showing as below:
SGX:K03'
s Gross Margin % Range Over the Past 10 Years
Min: 8.83 Med: 9.73 Max: 12.28
Current: 9.44
During the past 13 years, the highestGross Margin % of Khong Guan was 12.28%. The lowest was 8.83%. And the median was 9.73%.
SGX:K03's Gross Margin % is ranked worse than 84.64% of 306
companies
in the Retail - Defensive industry
Industry Median: 24.11
vs SGX:K03: 9.44
Khong Guan had a gross margin of 9.27% for the quarter that ended in Jan. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Khong Guan was -1.60% per year.
Khong Guan (SGX:K03) 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
Khong Guan had a gross margin of 9.27% for the quarter that ended in Jan. 2026 => 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.
Khong Guan Gross Margin % Related Terms
Khong Guan Gross Margin % Historical Data
* Premium members only.
The historical data trend for Khong Guan'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:K03 vs SYY, USFD, PFGC: Gross Margin % Comparison
For the Food Distribution subindustry, Khong Guan'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.
Khong Guan Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Khong Guan's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Khong Guan'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.
Khong Guan (SGX:K03) has a Gross Margin % of 9.27% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Khong Guan and its competitors. This is near median its historical median of 9.73. Over the past decade, Khong Guan's Gross Margin % has ranged from 8.83 to 12.28. According to the industry distribution chart, Khong Guan ranks #259 out of 306 companies in the Retail - Defensive industry, placing it in the top 84.6%.
Is Khong Guan's Gross Margin % too high?
Khong Guan's current Gross Margin % of 9.27% is near median its 10-year median of 9.73. Over the past 10 years, this metric has ranged from a low of 8.83 to a high of 12.28. The Retail - Defensive industry median Gross Margin % is 24.11. Khong Guan's value of 9.27% is 61.6% below this industry median. Based on the distribution chart, Khong Guan ranks #259 out of 306 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Khong Guan has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Khong Guan's Gross Margin % compare to SYY and USFD?
According to the Retail - Defensive industry distribution chart, Khong Guan ranks #259 out of 306 companies for Gross Margin %. This places Khong Guan in the lower half of its industry. The industry median Gross Margin % is 24.11. Khong Guan's value of 9.27% is 61.6% below this benchmark. Historically, Khong Guan's own Gross Margin % has ranged from 8.83 to 12.28 over the past decade. While the company's 10-year median is 9.73 vs. the industry median of 24.11, Khong Guan 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 Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.11, based on 306 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. Khong Guan's current Gross Margin % of 9.27% is 61.6% 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 Khong Guan and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Khong Guan's current Gross Margin % is 9.27%, which is near median its own 10-year median of 9.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Khong Guan stock overvalued right now?
Based on GuruFocus' analysis, Khong Guan (SGX:K03) is currently considered Modestly Undervalued. The stock's GF Value™ is S$1.02, compared to a current price of S$0.85 — trading 17.2% below its estimated fair value. The current Gross Margin % is 9.27%, which is near median its 10-year median of 9.73 and 61.6% below the Retail - Defensive industry median of 24.11. Khong Guan's overall GF Score™ is 67/100 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 Khong Guan (SGX:K03), the current Gross Margin % is 9.27% as of Jan. 2026. 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 Khong Guan (SGX:K03) Overvalued in 2026?
Based on GuruFocus' analysis, Khong Guan stock appears to be undervalued.
The current stock price of S$0.85 is trading 17.2% below its estimated GF Value™ of S$1.02.
GuruFocus considers Khong Guan to be Modestly Undervalued.
Key valuation signals for SGX:K03:
Gross Margin %: 9.27% (near median its 10-year median of 9.73)
GF Value™: S$1.02 vs. price of S$0.85 (17.2% below fair value)
Industry Position: 61.6% below the Retail - Defensive median (#259 of 306)
No single metric tells the full story. See the SGX:K03 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Khong Guan Ltd is a Singapore-based investment holding company. It has two reportable operating segments; Trading of wheat flour and consumer goods, which is engaged in trading of wheat flour and consumer goods in Singapore and Malaysia; and Others which is involved in trading and holding of quoted and unquoted shares in Singapore and Malaysia. The company generates maximum revenue from the Trading of wheat flour and consumer goods segment. Geographically, it derives a majority of its revenue from Malaysia and the rest from Singapore.
67GF Score
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