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Universal Technologies Holdings (HKSE:01026) Gross Margin % : 4.28% (As of Dec. 2023)


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What is Universal Technologies Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Universal Technologies Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$7.1 Mil. Universal Technologies Holdings's Revenue for the six months ended in Dec. 2023 was HK$166.1 Mil. Therefore, Universal Technologies Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 4.28%.

Warning Sign:

Universal Technologies Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -28.2%.


The historical rank and industry rank for Universal Technologies Holdings's Gross Margin % or its related term are showing as below:

HKSE:01026' s Gross Margin % Range Over the Past 10 Years
Min: 5.57   Med: 26.41   Max: 90.34
Current: 5.57


During the past 13 years, the highest Gross Margin % of Universal Technologies Holdings was 90.34%. The lowest was 5.57%. And the median was 26.41%.

HKSE:01026's Gross Margin % is ranked worse than
93.64% of 503 companies
in the Utilities - Regulated industry
Industry Median: 29.14 vs HKSE:01026: 5.57

Universal Technologies Holdings had a gross margin of 4.28% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Universal Technologies Holdings was -28.20% per year.


Universal Technologies Holdings Gross Margin % Historical Data

The historical data trend for Universal Technologies Holdings'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.

* Premium members only.

Universal Technologies Holdings Gross Margin % Chart

Universal Technologies Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.72 14.95 13.12 8.41 5.57

Universal Technologies Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 12.79 6.79 9.93 6.97 4.28

Competitive Comparison of Universal Technologies Holdings's Gross Margin %

For the Utilities - Regulated Water subindustry, Universal Technologies Holdings'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.


Universal Technologies Holdings's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Universal Technologies Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Universal Technologies Holdings's Gross Margin % falls into.



Universal Technologies Holdings Gross Margin % Calculation

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

Universal Technologies Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=17.8 / 319.147
=(Revenue - Cost of Goods Sold) / Revenue
=(319.147 - 301.376) / 319.147
=5.57 %

Universal Technologies Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=7.1 / 166.056
=(Revenue - Cost of Goods Sold) / Revenue
=(166.056 - 158.949) / 166.056
=4.28 %

* 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.


Universal Technologies Holdings  (HKSE:01026) 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

Universal Technologies Holdings had a gross margin of 4.28% for the quarter that ended in Dec. 2023 => 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.


Universal Technologies Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Universal Technologies Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Universal Technologies Holdings (HKSE:01026) Business Description

Traded in Other Exchanges
N/A
Address
Number 148 Connaught Road Central, Room A & B2, 11th Floor, Guangdong Investment Tower, Sheung Wan, Hong Kong, HKG
Universal Technologies Holdings Ltd is an investment holding company. The company has three operating segments: Water supply and related services; Properties investment and development; and Financial Services. It generates maximum revenue from the Water supply and related services segment. The Water supply and related services segment engaged in the supply of tap water to various districts of Qingyuan City, Guangdong Province. Geographically, it derives a majority of revenue from the People's Republic of China.
Executives
Wang Yingqi 2201 Interest of corporation controlled by you
Bei Yi Si Guang Zhou Ke Ji You Xian Gong Si
Bei Yi Si Xiang Gang Ke Ji You Xian Gong Si
Affluent Vast Holdings Limited 2201 Interest of corporation controlled by you
Zhu Fenglian 2201 Interest of corporation controlled by you
Eastcorp International Limited 2101 Beneficial owner
Yong Cheng Shi Ye Fa Zhan You Xian Gong Si 2501 Other

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