SG Group Holdings (HKSE:01657) Gross Margin % : 8.50% (As of Oct. 2023)

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What is SG Group Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SG Group Holdings's Gross Profit for the six months ended in Oct. 2023 was HK$7.3 Mil. SG Group Holdings's Revenue for the six months ended in Oct. 2023 was HK$85.8 Mil. Therefore, SG Group Holdings's Gross Margin % for the quarter that ended in Oct. 2023 was 8.50%.

Warning Sign:

SG Group Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -12.4%.

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

HKSE:01657' s Gross Margin % Range Over the Past 10 Years
Min: 8.72 Med: 22.88 Max: 26.1
Current: 8.72

During the past 9 years, the highest Gross Margin % of SG Group Holdings was 26.10%. The lowest was 8.72%. And the median was 22.88%.

HKSE:01657's Gross Margin % is ranked worse than
92.42% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.51 vs HKSE:01657: 8.72

SG Group Holdings had a gross margin of 8.50% for the quarter that ended in Oct. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for SG Group Holdings was -12.40% per year.

SG Group Holdings Gross Margin % Historical Data

The historical data trend for SG Group 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.

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SG Group Holdings Gross Margin % Chart

SG Group Holdings Annual Data

Trend

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Gross Margin %

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24.77

23.43

16.06

20.35

12.50

SG Group Holdings Semi-Annual Data
	Apr15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
Gross Margin %	Get a 7-Day Free Trial												23.37	18.17	18.00	8.92	8.50

Competitive Comparison of SG Group Holdings's Gross Margin %

For the Apparel Retail subindustry, SG Group 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.

SG Group Holdings's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, SG Group Holdings's Gross Margin % distribution charts can be found below:

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

SG Group Holdings Gross Margin % Calculation

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

SG Group Holdings's Gross Margin for the fiscal year that ended in Apr. 2023 is calculated as

Gross Margin % (A: Apr. 2023 )	=	Gross Profit (A: Apr. 2023 )	/	Revenue (A: Apr. 2023 )
	=	18.7	/	149.362
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(149.362 - 130.689)	/	149.362
	=	12.50 %

SG Group Holdings's Gross Margin for the quarter that ended in Oct. 2023 is calculated as

Gross Margin % (Q: Oct. 2023 )	=	Gross Profit (Q: Oct. 2023 )	/	Revenue (Q: Oct. 2023 )
	=	7.3	/	85.768
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(85.768 - 78.482)	/	85.768
	=	8.50 %

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.

SG Group Holdings (HKSE:01657) 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

SG Group Holdings had a gross margin of 8.50% for the quarter that ended in Oct. 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.

SG Group Holdings Gross Margin % Related Terms

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SG Group Holdings (HKSE:01657) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » SG Group Holdings Ltd (HKSE:01657) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1-7 Wah Sing Street, Unit B, 9th Floor, Mai Wah Industrial Building, Kwai Chung, New Territories, Hong Kong, HKG

Website

http://www.jcfash.com

SG Group Holdings Ltd is an investment holding company. The company's operating segment includes Supply of Apparel Products and Consultation Services. The company generates maximum revenue from the Supply of Apparel Products segment which is engaged in the supply of apparel products with designing and sourcing services to fashion retailers. The company earns revenue from Womenswear, Childrenswear, and Menswear products. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in the PRC, Germany, the United States of America, Hong Kong, Ireland, the Middle East, and Other Countries.

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