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Geotech Holdings (HKSE:01707) Gross Margin % : 3.43% (As of Dec. 2023)


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What is Geotech Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Geotech Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$2.5 Mil. Geotech Holdings's Revenue for the six months ended in Dec. 2023 was HK$71.6 Mil. Therefore, Geotech Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 3.43%.

Warning Sign:

Geotech Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -24.1%.


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

HKSE:01707' s Gross Margin % Range Over the Past 10 Years
Min: 0.69   Med: 6.26   Max: 15.64
Current: 2.66


During the past 10 years, the highest Gross Margin % of Geotech Holdings was 15.64%. The lowest was 0.69%. And the median was 6.26%.

HKSE:01707's Gross Margin % is ranked worse than
92.19% of 1613 companies
in the Construction industry
Industry Median: 19.2 vs HKSE:01707: 2.66

Geotech Holdings had a gross margin of 3.43% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Geotech Holdings was -24.10% per year.


Geotech Holdings Gross Margin % Historical Data

The historical data trend for Geotech 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.

Geotech Holdings Gross Margin % Chart

Geotech 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 3.06 1.57 0.69 1.34 2.66

Geotech Holdings Semi-Annual Data
Dec14 Dec15 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 0.89 1.16 1.60 1.78 3.43

Competitive Comparison of Geotech Holdings's Gross Margin %

For the Engineering & Construction subindustry, Geotech 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.


Geotech Holdings's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Geotech Holdings's Gross Margin % distribution charts can be found below:

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



Geotech Holdings Gross Margin % Calculation

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

Geotech 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 )
=3.6 / 134.567
=(Revenue - Cost of Goods Sold) / Revenue
=(134.567 - 130.989) / 134.567
=2.66 %

Geotech 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 )
=2.5 / 71.57
=(Revenue - Cost of Goods Sold) / Revenue
=(71.57 - 69.115) / 71.57
=3.43 %

* 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.


Geotech Holdings  (HKSE:01707) 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

Geotech Holdings had a gross margin of 3.43% 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.


Geotech Holdings Gross Margin % Related Terms

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Geotech Holdings (HKSE:01707) Business Description

Traded in Other Exchanges
N/A
Address
2 Queen’s Road Central, Unit 1920, 19th Floor, Cheung Kong Center, Central, Hong Kong, HKG
Geotech Holdings Ltd is an investment holding company. The firm is engaged in the provision of construction and engineering services and property-related services. It is principally engaged in the slope works in Hong Kong as the main contractor. It mainly operates in two segments; Construction and engineering services and Property-related services. The group undertakes slope works as the main contractor and undertakes ground investigation field works as a subcontractor. It derives the majority of its revenue from Hong Kong. The Construction and engineering services segment derives key revenue for the firm.
Executives
Chen Zhi 2201 Interest of corporation controlled by you
Star Merit Global Limited 2101 Beneficial owner
Cheung Ting Kam 2201 Interest of corporation controlled by you

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