Lonking Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.4%.
The historical rank and industry rank for Lonking Holdings's Gross Margin % or its related term are showing as below:
HKSE:03339'
s Gross Margin % Range Over the Past 10 Years
Min: 16.74 Med: 23.17 Max: 26.59
Current: 17.53
During the past 13 years, the highestGross Margin % of Lonking Holdings was 26.59%. The lowest was 16.74%. And the median was 23.17%.
HKSE:03339's Gross Margin % is ranked worse than 71.36% of 206
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 24.36
vs HKSE:03339: 17.53
Lonking Holdings had a gross margin of 18.77% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lonking Holdings was -7.40% per year.
Lonking Holdings Gross Margin % Historical Data
The historical data trend for Lonking 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.
Competitive Comparison of Lonking Holdings's Gross Margin %
For the Farm & Heavy Construction Machinery subindustry, Lonking 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.
Lonking Holdings's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Lonking Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lonking Holdings'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.
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
Lonking Holdings had a gross margin of 18.77% 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.
Lonking Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lonking Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lonking Holdings (HKSE:03339) Business Description
Lonking Holdings Ltd is a construction and logistics machinery manufacturers in China. It produces wheel loaders, excavators, road rollers, forklifts, and other heavy equipment. In addition, the company supplies individual components, including gearboxes, converters, axles, and hydraulic components. Lonking Holdings has three operating segments: Sale of construction machinery (majority of total revenue), Finance lease of construction machinery, and Financial investment. Used equipment and leasing solutions help extend offerings and pinpoint the correct solution for each customer. Trained technicians provide aftermarket services and parts to maximize equipment efficiency. The majority of sales are derived from China.
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