DLC Asia (HKSE:08210) Gross Margin % : 38.89% (As of Sep. 2023)

View and export this data going back to 2018. Start your Free Trial

What is DLC Asia Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. DLC Asia's Gross Profit for the three months ended in Sep. 2023 was HK$6.37 Mil. DLC Asia's Revenue for the three months ended in Sep. 2023 was HK$16.38 Mil. Therefore, DLC Asia's Gross Margin % for the quarter that ended in Sep. 2023 was 38.89%.

Warning Sign:

DLC Asia Ltd gross margin has been in long-term decline. The average rate of decline per year is -8.2%.

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

HKSE:08210' s Gross Margin % Range Over the Past 10 Years
Min: 27.17 Med: 43.62 Max: 53.89
Current: 34.61

During the past 8 years, the highest Gross Margin % of DLC Asia was 53.89%. The lowest was 27.17%. And the median was 43.62%.

HKSE:08210's Gross Margin % is ranked worse than
62.58% of 604 companies
in the Capital Markets industry
Industry Median: 49.43 vs HKSE:08210: 34.61

DLC Asia had a gross margin of 38.89% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for DLC Asia was -8.20% per year.

DLC Asia Gross Margin % Historical Data

The historical data trend for DLC Asia'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.

DLC Asia Gross Margin % Chart

DLC Asia Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

Get a 7-Day Free Trial

42.95

44.28

27.17

27.46

35.85

DLC Asia Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															47.72	25.31	39.25	34.46	38.89

Competitive Comparison of DLC Asia's Gross Margin %

For the Capital Markets subindustry, DLC Asia'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.

DLC Asia's Gross Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, DLC Asia's Gross Margin % distribution charts can be found below:

* The bar in red indicates where DLC Asia's Gross Margin % falls into.

DLC Asia Gross Margin % Calculation

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

DLC Asia's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	20.4	/	56.941
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(56.941 - 36.528)	/	56.941
	=	35.85 %

DLC Asia's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	6.4	/	16.382
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(16.382 - 10.011)	/	16.382
	=	38.89 %

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.

DLC Asia (HKSE:08210) 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

DLC Asia had a gross margin of 38.89% for the quarter that ended in Sep. 2023 => Competition eroding margins

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.

DLC Asia Gross Margin % Related Terms

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

DLC Asia (HKSE:08210) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » DLC Asia Ltd (HKSE:08210) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

8 Fleming Road, Units 2601-3, Tai Tung Building, Wanchai, Hong Kong, HKG

Website

https://www.derivaasia.com

DLC Asia Ltd is an investment holding company. Along with its holdings, the company is known as the interdealer broker in Hong Kong that provides derivatives brokerage services to Professional Investors by dealing in securities and futures contracts. Its revenues are derived from commission income received from customers for providing brokerage services on derivative contracts by various execution channels including HKEx, SGX, and OTC. While its revenue is earned from the HKEx market.

DLC Asia (HKSE:08210) Headlines

No Headlines