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Kinetic Development Group (HKSE:01277) Gross Margin % : 61.06% (As of Dec. 2023)


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What is Kinetic Development Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kinetic Development Group's Gross Profit for the six months ended in Dec. 2023 was HK$2,172 Mil. Kinetic Development Group's Revenue for the six months ended in Dec. 2023 was HK$3,558 Mil. Therefore, Kinetic Development Group's Gross Margin % for the quarter that ended in Dec. 2023 was 61.06%.


The historical rank and industry rank for Kinetic Development Group's Gross Margin % or its related term are showing as below:

HKSE:01277' s Gross Margin % Range Over the Past 10 Years
Min: 10.92   Med: 44.08   Max: 65.36
Current: 59.07


During the past 13 years, the highest Gross Margin % of Kinetic Development Group was 65.36%. The lowest was 10.92%. And the median was 44.08%.

HKSE:01277's Gross Margin % is ranked better than
91.06% of 123 companies
in the Other Energy Sources industry
Industry Median: 28.93 vs HKSE:01277: 59.07

Kinetic Development Group had a gross margin of 61.06% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kinetic Development Group was 10.00% per year.


Kinetic Development Group Gross Margin % Historical Data

The historical data trend for Kinetic Development Group'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.

Kinetic Development Group Gross Margin % Chart

Kinetic Development Group 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 39.03 43.30 64.58 65.36 59.07

Kinetic Development Group 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 70.08 69.61 61.29 54.75 61.06

Competitive Comparison of Kinetic Development Group's Gross Margin %

For the Thermal Coal subindustry, Kinetic Development Group'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.


Kinetic Development Group's Gross Margin % Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, Kinetic Development Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kinetic Development Group's Gross Margin % falls into.



Kinetic Development Group Gross Margin % Calculation

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

Kinetic Development Group'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 )
=3065.9 / 5190.056
=(Revenue - Cost of Goods Sold) / Revenue
=(5190.056 - 2124.152) / 5190.056
=59.07 %

Kinetic Development Group'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 )
=2172.4 / 3557.922
=(Revenue - Cost of Goods Sold) / Revenue
=(3557.922 - 1385.532) / 3557.922
=61.06 %

* 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.


Kinetic Development Group  (HKSE:01277) 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

Kinetic Development Group had a gross margin of 61.06% for the quarter that ended in Dec. 2023 => 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.


Kinetic Development Group Gross Margin % Related Terms

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Kinetic Development Group (HKSE:01277) Business Description

Traded in Other Exchanges
N/A
Address
Dafanpu Coal Mine, Majiata Village, Xuejiawan Town Zhunge’er Banner, Ordos City Inner Mongolia, Ordos City, CHN
Kinetic Development Group Ltd is engaged in the extraction and sales of coal products. It also operates in other activities which include coal production and washing, coal loading and transportation, and coal trading. Its customer base includes large-scale state-owned enterprises, trading firms, and terminal power plants. The company focuses on the development and operation of the Dafanpu Coal Mine situated in Erdos City, the Xiaojia loading station, and its associated rail spur lines. The reportable segments of the company are the coal mining segment and other segment (mainly including planting and properties operations).

Kinetic Development Group (HKSE:01277) Headlines

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