Ho Wah Genting BhdXKLS:9601 36 Gross Margin % is 2.56% as of Mar. 2026, which is 56% below its 10-year median of 5.87. GuruFocus rates XKLS:9601 with a GF Score™ of 36/100 and a GF Value™ of RM0.15 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,997 Industrial Products companies, Ho Wah Genting Bhd ranks worse than 94.66% on this metric.
Ho Wah Genting Bhd gross margin has been in long-term decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for Ho Wah Genting Bhd's Gross Margin % or its related term are showing as below:
XKLS:9601'
s Gross Margin % Range Over the Past 10 Years
Min: -4.95 Med: 5.87 Max: 7.28
Current: 5.83
During the past 13 years, the highestGross Margin % of Ho Wah Genting Bhd was 7.28%. The lowest was -4.95%. And the median was 5.87%.
XKLS:9601's Gross Margin % is ranked worse than 94.66% of 2997
companies
in the Industrial Products industry
Industry Median: 26.81
vs XKLS:9601: 5.83
Ho Wah Genting Bhd had a gross margin of 2.56% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ho Wah Genting Bhd was -2.50% per year.
Ho Wah Genting Bhd (XKLS:9601) 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
Ho Wah Genting Bhd had a gross margin of 2.56% for the quarter that ended in Mar. 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.
Ho Wah Genting Bhd Gross Margin % Related Terms
Ho Wah Genting Bhd Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ho Wah Genting Bhd'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.
XKLS:9601 vs VRT, BE, HUBB: Gross Margin % Comparison
For the Electrical Equipment & Parts subindustry, Ho Wah Genting 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.
Ho Wah Genting Bhd Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ho Wah Genting Bhd's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ho Wah Genting 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.
Ho Wah Genting Bhd (XKLS:9601) has a Gross Margin % of 2.56% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ho Wah Genting Bhd and its competitors. This is 56% below median its historical median of 5.87. According to the industry distribution chart, Ho Wah Genting Bhd ranks #2837 out of 2997 companies in the Industrial Products industry, placing it in the top 94.7%.
Is Ho Wah Genting Bhd's Gross Margin % too high?
Ho Wah Genting Bhd's current Gross Margin % of 2.56% is 56% below median its 10-year median of 5.87. The Industrial Products industry median Gross Margin % is 26.81. Ho Wah Genting Bhd's value of 2.56% is 90.5% below this industry median. Based on the distribution chart, Ho Wah Genting Bhd ranks #2837 out of 2997 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Ho Wah Genting Bhd has a GF Score™ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ho Wah Genting Bhd's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Ho Wah Genting Bhd ranks #2837 out of 2997 companies for Gross Margin %. This places Ho Wah Genting Bhd in the lower half of its industry. The industry median Gross Margin % is 26.81. Ho Wah Genting Bhd's value of 2.56% is 90.5% below this benchmark. While the company's 10-year median is 5.87 vs. the industry median of 26.81, Ho Wah Genting Bhd 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 Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,997 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. Ho Wah Genting Bhd's current Gross Margin % of 2.56% is 90.5% 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 Ho Wah Genting Bhd and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ho Wah Genting Bhd's current Gross Margin % is 2.56%, which is 56% below median its own 10-year median of 5.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ho Wah Genting Bhd stock overvalued right now?
Based on GuruFocus' analysis, Ho Wah Genting Bhd (XKLS:9601) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.15, compared to a current price of RM0.11 — trading 30% below its estimated fair value. The current Gross Margin % is 2.56%, which is 56% below median its 10-year median of 5.87 and 90.5% below the Industrial Products industry median of 26.81. Ho Wah Genting Bhd's overall GF Score™ is 36/100 with 6 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 Ho Wah Genting Bhd (XKLS:9601), the current Gross Margin % is 2.56% 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 Ho Wah Genting Bhd (XKLS:9601) Overvalued in 2026?
Based on GuruFocus' analysis, Ho Wah Genting Bhd stock appears to be undervalued.
The current stock price of RM0.11 is trading 30% below its estimated GF Value™ of RM0.15.
GuruFocus considers Ho Wah Genting Bhd to be Possible Value Trap.
Key valuation signals for XKLS:9601:
Gross Margin %: 2.56% (56% below median its 10-year median of 5.87)
GF Value™: RM0.15 vs. price of RM0.11 (30% below fair value)
Industry Position: 90.5% below the Industrial Products median (#2837 of 2997)
No single metric tells the full story. See the XKLS:9601 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ho Wah Genting Bhd is an integrated manufacturer engaged in manufacturing of wires and cables, power supply cord sets, and moulded cable assemblies for original equipment manufacturers (OEM) of electrical and electronic devices and for original design manufacturers (ODM). Its segments include Investment engaged in investment in properties and investment by the holding company; Moulded power supply cord sets engaged in manufacturing and trading of wires and cables, moulded power supply cord sets and cable assemblies for electrical and electronic devices and equipment; and Healthcare engaged in healthcare related businesses which includes the health supplement, biotechnology and healthcare technology.
36GF Score
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