Lim Seong Hai Capital BhdXKLS:0351 +1.16%86 Gross Margin % is 47.90% as of Mar. 2026, which is 73% above its 10-year median of 27.75. GuruFocus rates XKLS:0351 with a GF Score™ of 86/100 and a GF Value™ of RM1.31 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,718 Construction companies, Lim Seong Hai Capital Bhd ranks better than 81.37% on this metric.
Lim Seong Hai Capital Bhd (XKLS:0351) 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
Lim Seong Hai Capital Bhd had a gross margin of 47.90% for the quarter that ended in Mar. 2026 => 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.
Lim Seong Hai Capital Bhd Gross Margin % Related Terms
Lim Seong Hai Capital Bhd 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.
XKLS:0351 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Lim Seong Hai Capital Bhd'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.
Lim Seong Hai Capital Bhd Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Lim Seong Hai Capital Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lim Seong Hai Capital Bhd'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.
Lim Seong Hai Capital Bhd (XKLS:0351) has a Gross Margin % of 47.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lim Seong Hai Capital Bhd and its competitors. This is 73% above median its historical median of 27.75. Over the past decade, Lim Seong Hai Capital Bhd's Gross Margin % has ranged from 21.87 to 40.71. According to the industry distribution chart, Lim Seong Hai Capital Bhd ranks #320 out of 1718 companies in the Construction industry, placing it in the top 18.6%.
Is Lim Seong Hai Capital Bhd's Gross Margin % too high?
Lim Seong Hai Capital Bhd's current Gross Margin % of 47.90% is 73% above median its 10-year median of 27.75. Over the past 10 years, this metric has ranged from a low of 21.87 to a high of 40.71. The Construction industry median Gross Margin % is 20.75. Lim Seong Hai Capital Bhd's value of 47.90% is 130.8% above this industry median. Based on the distribution chart, Lim Seong Hai Capital Bhd ranks #320 out of 1718 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Lim Seong Hai Capital Bhd has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lim Seong Hai Capital Bhd's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Lim Seong Hai Capital Bhd ranks #320 out of 1718 companies for Gross Margin %. This places Lim Seong Hai Capital Bhd in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.75. Lim Seong Hai Capital Bhd's value of 47.90% is 130.8% above this benchmark. Historically, Lim Seong Hai Capital Bhd's own Gross Margin % has ranged from 21.87 to 40.71 over the past decade. While the company's 10-year median is 27.75 vs. the industry median of 20.75, Lim Seong Hai Capital Bhd 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 Construction company?
The median Gross Margin % among Construction companies is 20.75, based on 1,718 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. Lim Seong Hai Capital Bhd's current Gross Margin % of 47.90% is 130.8% 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 Lim Seong Hai Capital Bhd and its competitors. For the Construction industry, the median Gross Margin % is 20.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lim Seong Hai Capital Bhd's current Gross Margin % is 47.90%, which is 73% above median its own 10-year median of 27.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lim Seong Hai Capital Bhd stock overvalued right now?
Based on GuruFocus' analysis, Lim Seong Hai Capital Bhd (XKLS:0351) is currently considered Significantly Overvalued. The stock's GF Value™ is RM1.31, compared to a current price of RM1.75 — trading 33.6% above its estimated fair value. The current Gross Margin % is 47.90%, which is 73% above median its 10-year median of 27.75 and 130.8% above the Construction industry median of 20.75. Lim Seong Hai Capital Bhd's overall GF Score™ is 86/100 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 Lim Seong Hai Capital Bhd (XKLS:0351), the current Gross Margin % is 47.90% as of Mar. 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 Lim Seong Hai Capital Bhd (XKLS:0351) Overvalued in 2026?
Based on GuruFocus' analysis, Lim Seong Hai Capital Bhd stock appears to be overvalued.
The current stock price of RM1.75 is trading 33.6% above its estimated GF Value™ of RM1.31.
GuruFocus considers Lim Seong Hai Capital Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:0351:
Gross Margin %: 47.90% (73% above median its 10-year median of 27.75)
GF Value™: RM1.31 vs. price of RM1.75 (33.6% above fair value)
Industry Position: 130.8% above the Construction median (#320 of 1718)
No single metric tells the full story. See the XKLS:0351 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lim Seong Hai Capital Bhd is an investment holding company. Along with its subsidiaries, the company is engaged in the following reportable segments: i) distribution and/or retail of building materials, lighting products and related mechanical and electrical products and services, ii) wholesale and retail of hardware and tools, and rental of machinery, iii) investment holding, iv) business of construction, v) provision of construction and business related services & solutions, vi) property development, vii) facilities management, and viii) companies which are in dormant status. The majority of the company's revenue is derived from the property development segment. Geographically, the company operates predominantly in Malaysia.
86GF Score
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