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Sun Hung Kai PropertiesSTU:SHG -1.47%75 Gross Margin % is 30.39% as of Dec. 2025, which is 38% below its 10-year median of 48.66. GuruFocus rates STU:SHG with a GF Score™ of 75/100 and a GF Value™ of €10.33 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,641 Real Estate companies, Sun Hung Kai Properties ranks better than 51.13% on this metric.
STU:SHG's Gross Margin % is ranked better than 51.13% of 1641
companies
in the Real Estate industry
Industry Median: 36.47
vs STU:SHG: 37.50
Sun Hung Kai Properties had a gross margin of 30.39% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Sun Hung Kai Properties was -3.90% per year.
Sun Hung Kai Properties (STU:SHG) 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
Sun Hung Kai Properties had a gross margin of 30.39% 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.
Sun Hung Kai Properties Gross Margin % Related Terms
Sun Hung Kai Properties Gross Margin % Historical Data
* 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.
Sun Hung Kai Properties Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, Sun Hung Kai Properties'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.
Sun Hung Kai Properties Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Sun Hung Kai Properties's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sun Hung Kai Properties'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.
Sun Hung Kai Properties (STU:SHG) has a Gross Margin % of 30.39% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Sun Hung Kai Properties and its competitors. This is 38% below median its historical median of 48.66. Over the past decade, Sun Hung Kai Properties' Gross Margin % has ranged from 37.50 to 52.57. According to the industry distribution chart, Sun Hung Kai Properties ranks #802 out of 1641 companies in the Real Estate industry, placing it in the top 48.9%.
Is Sun Hung Kai Properties' Gross Margin % too high?
Sun Hung Kai Properties' current Gross Margin % of 30.39% is 38% below median its 10-year median of 48.66. Over the past 10 years, this metric has ranged from a low of 37.50 to a high of 52.57. The Real Estate industry median Gross Margin % is 36.47. Sun Hung Kai Properties' value of 30.39% is 16.7% below this industry median. Based on the distribution chart, Sun Hung Kai Properties ranks #802 out of 1641 companies in the Real Estate industry, which is above the industry midpoint. Overall, Sun Hung Kai Properties has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sun Hung Kai Properties' Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Sun Hung Kai Properties ranks #802 out of 1641 companies for Gross Margin %. This puts Sun Hung Kai Properties in the upper half of its industry. The industry median Gross Margin % is 36.47. Sun Hung Kai Properties' value of 30.39% is 16.7% below this benchmark. Historically, Sun Hung Kai Properties' own Gross Margin % has ranged from 37.50 to 52.57 over the past decade. While the company's 10-year median is 48.66 vs. the industry median of 36.47, Sun Hung Kai Properties 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 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. Sun Hung Kai Properties's current Gross Margin % of 30.39% is 16.7% 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 Sun Hung Kai Properties 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. Sun Hung Kai Properties's current Gross Margin % is 30.39%, which is 38% below median its own 10-year median of 48.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sun Hung Kai Properties stock overvalued right now?
Based on GuruFocus' analysis, Sun Hung Kai Properties (STU:SHG) is currently considered Modestly Overvalued. The stock's GF Value™ is €10.33, compared to a current price of €13.40 — trading 29.7% above its estimated fair value. The current Gross Margin % is 30.39%, which is 38% below median its 10-year median of 48.66 and 16.7% below the Real Estate industry median of 36.47. Sun Hung Kai Properties' overall GF Score™ is 75/100 with 5 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 Sun Hung Kai Properties (STU:SHG), the current Gross Margin % is 30.39% 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 Sun Hung Kai Properties (STU:SHG) Overvalued in 2026?
Based on GuruFocus' analysis, Sun Hung Kai Properties stock appears to be overvalued.
The current stock price of €13.40 is trading 29.7% above its estimated GF Value™ of €10.33.
GuruFocus considers Sun Hung Kai Properties to be Modestly Overvalued.
Key valuation signals for STU:SHG:
Gross Margin %: 30.39% (38% below median its 10-year median of 48.66)
GF Value™: €10.33 vs. price of €13.40 (29.7% above fair value)
Industry Position: 16.7% below the Real Estate median (#802 of 1641)
No single metric tells the full story. See the STU:SHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sun Hung Kai Properties is a diversified real estate developer in Hong Kong with a core focus on the residential, office, and retail real estate segments. Most of its business is based in Hong Kong, where it is a leading private housing developer and holds a portfolio of high-quality retail and office properties for rental income. The company also invests in other listed entities, including a telecommunication company, SmarTone, and a data center provider, SUNeVision. The Kwok family is the controlling shareholder, with a stake of more than 40%.
75GF Score
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