Lien Chang Electronic Enterprise Co (TPE:2431) Gross Margin %: -118.71% (As of Dec. 2025)


TPE:2431 Lien Chang Electronic Enterprise Co Ltd TPE:2431
58 GF Score
Price NT$11.45
GF Value NT$8.75
Valuation Significantly Overvalued
! 2 Warning Signs
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What is Lien Chang Electronic Enterprise Co Gross Margin %?

Lien Chang Electronic Enterprise Co TPE:2431 58 Gross Margin % is -118.71% as of Dec. 2025. GuruFocus rates TPE:2431 with a GF Score™ of 58/100 and a GF Value™ of NT$8.75 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,450 Hardware companies, Lien Chang Electronic Enterprise Co ranks worse than 98.82% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Lien Chang Electronic Enterprise Co's Gross Profit for the three months ended in Dec. 2025 was NT$-81.2 Mil. Lien Chang Electronic Enterprise Co's Revenue for the three months ended in Dec. 2025 was NT$68.4 Mil. Therefore, Lien Chang Electronic Enterprise Co's Gross Margin % for the quarter that ended in Dec. 2025 was -118.71%.


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

TPE:2431' s Gross Margin % Range Over the Past 10 Years
Min: -23.52   Med: 5.57   Max: 13.1
Current: -23.52


During the past 13 years, the highest Gross Margin % of Lien Chang Electronic Enterprise Co was 13.10%. The lowest was -23.52%. And the median was 5.57%.

TPE:2431's Gross Margin % is ranked worse than
98.82% of 2450 companies
in the Hardware industry
Industry Median: 24.53 vs TPE:2431: -23.52

Lien Chang Electronic Enterprise Co had a gross margin of -118.71% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lien Chang Electronic Enterprise Co was 0.00% per year.


Lien Chang Electronic Enterprise Co  (TPE:2431) 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

Lien Chang Electronic Enterprise Co had a gross margin of -118.71% 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.


Lien Chang Electronic Enterprise Co Gross Margin % Related Terms


Lien Chang Electronic Enterprise Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Lien Chang Electronic Enterprise 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.

Lien Chang Electronic Enterprise Co Gross Margin % Chart

Lien Chang Electronic Enterprise 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 5.70 5.44 -4.02 -3.02 -23.52

Lien Chang Electronic Enterprise 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 -2.98 1.87 -1.02 -9.57 -118.71

TPE:2431 vs APH, GLW: Gross Margin % Comparison

For the Electronic Components subindustry, Lien Chang Electronic Enterprise 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.


Lien Chang Electronic Enterprise Co Gross Margin % vs Hardware Industry

For the Hardware industry and Technology sector, Lien Chang Electronic Enterprise Co's Gross Margin % distribution charts can be found below:

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


TPE:2431
58GF Score
Lien Chang Electronic Enterprise Co Ltd TPE:2431
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Lien Chang Electronic Enterprise Co Gross Margin % Calculation

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

Lien Chang Electronic Enterprise 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 )
=-88.3 / 375.211
=(Revenue - Cost of Goods Sold) / Revenue
=(375.211 - 463.462) / 375.211
=-23.52 %

Lien Chang Electronic Enterprise 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 )
=-81.2 / 68.386
=(Revenue - Cost of Goods Sold) / Revenue
=(68.386 - 149.567) / 68.386
=-118.71 %

* 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 -118.71% mean?
Lien Chang Electronic Enterprise Co (TPE:2431) has a Gross Margin % of -118.71% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lien Chang Electronic Enterprise Co and its competitors. According to the industry distribution chart, Lien Chang Electronic Enterprise Co ranks #2421 out of 2450 companies in the Hardware industry, placing it in the top 98.8%.
Is Lien Chang Electronic Enterprise Co's Gross Margin % too high?
Lien Chang Electronic Enterprise Co's current Gross Margin % is -118.71%. Based on the distribution chart, Lien Chang Electronic Enterprise Co ranks #2421 out of 2450 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Lien Chang Electronic Enterprise Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lien Chang Electronic Enterprise Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Lien Chang Electronic Enterprise Co ranks #2421 out of 2450 companies for Gross Margin %. This places Lien Chang Electronic Enterprise Co in the lower half of its industry. The industry median Gross Margin % is 24.53. 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 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 Lien Chang Electronic Enterprise Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lien Chang Electronic Enterprise Co's current Gross Margin % is -118.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lien Chang Electronic Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Lien Chang Electronic Enterprise Co (TPE:2431) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$8.75, compared to a current price of NT$11.45 — trading 30.9% above its estimated fair value. The current Gross Margin % is -118.71%. Lien Chang Electronic Enterprise Co's overall GF Score™ is 58/100 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 Lien Chang Electronic Enterprise Co (TPE:2431), the current Gross Margin % is -118.71% 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 Lien Chang Electronic Enterprise Co (TPE:2431) Overvalued in 2026?

Based on GuruFocus' analysis, Lien Chang Electronic Enterprise Co stock appears to be overvalued. The current stock price of NT$11.45 is trading 30.9% above its estimated GF Value™ of NT$8.75. GuruFocus considers Lien Chang Electronic Enterprise Co to be Significantly Overvalued.

Key valuation signals for TPE:2431:

  • Gross Margin %: -118.71%
  • GF Value™: NT$8.75 vs. price of NT$11.45 (30.9% above fair value)
  • GF Score™: 58/100 with 2 warning signs

No single metric tells the full story. See the TPE:2431 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lien Chang Electronic Enterprise Co Business Description

Address Section 6, Nanjing East Road, 11th Floor, Number 501, Neihu District, Taipei, TWN, 11469
Lien Chang Electronic Enterprise Co Ltd is mainly engaged in the manufacture and trading of display monitors and power supply units. The company specializes in ODM manufacturing of power supply units, charging devices, and BLDC controllers, catering to industries including consumer electronics, household appliances, industrial equipment and automotive components. Its products and services include Drone ESC, Consumer Chargers, Power Supply Units, Motor/Compressor Drivers, Automotive Parts OEM, and Display. Geographically, the company generates a majority of its revenue from Asia.
58GF Score

Get the complete analysis for TPE:2431

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

NT$11.45
Price
NT$8.75
GF Value