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Shenzhen Investment (Shenzhen Investment) Gross Margin % : 30.97% (As of Dec. 2023)


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What is Shenzhen Investment Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shenzhen Investment's Gross Profit for the six months ended in Dec. 2023 was $388 Mil. Shenzhen Investment's Revenue for the six months ended in Dec. 2023 was $1,252 Mil. Therefore, Shenzhen Investment's Gross Margin % for the quarter that ended in Dec. 2023 was 30.97%.

Warning Sign:

Shenzhen Investment Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.1%.


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

SZNTF' s Gross Margin % Range Over the Past 10 Years
Min: 29.46   Med: 34.61   Max: 46.88
Current: 32.28


During the past 13 years, the highest Gross Margin % of Shenzhen Investment was 46.88%. The lowest was 29.46%. And the median was 34.61%.

SZNTF's Gross Margin % is ranked worse than
56.22% of 1656 companies
in the Real Estate industry
Industry Median: 36.73 vs SZNTF: 32.28

Shenzhen Investment had a gross margin of 30.97% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Shenzhen Investment was -2.10% per year.


Shenzhen Investment Gross Margin % Historical Data

The historical data trend for Shenzhen Investment'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.

Shenzhen Investment Gross Margin % Chart

Shenzhen Investment 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 34.35 46.88 38.77 33.90 32.28

Shenzhen Investment 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 40.53 44.75 23.37 34.39 30.97

Competitive Comparison of Shenzhen Investment's Gross Margin %

For the Real Estate - Development subindustry, Shenzhen Investment'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.


Shenzhen Investment's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Shenzhen Investment's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shenzhen Investment's Gross Margin % falls into.



Shenzhen Investment Gross Margin % Calculation

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

Shenzhen Investment'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 )
=654.4 / 2027.214
=(Revenue - Cost of Goods Sold) / Revenue
=(2027.214 - 1372.819) / 2027.214
=32.28 %

Shenzhen Investment'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 )
=387.6 / 1251.536
=(Revenue - Cost of Goods Sold) / Revenue
=(1251.536 - 863.892) / 1251.536
=30.97 %

* 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.


Shenzhen Investment  (OTCPK:SZNTF) 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

Shenzhen Investment had a gross margin of 30.97% for the quarter that ended in Dec. 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.


Shenzhen Investment Gross Margin % Related Terms

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Shenzhen Investment (Shenzhen Investment) Business Description

Traded in Other Exchanges
Address
9 Science Museum Road, 8th Floor, New East Ocean Centre, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
Shenzhen Investment Ltd is a general real estate company. The company reports five core segments: property development, property investment, property management, manufacture, and others. The company generates the vast majority of its revenue from its property development operations, followed by property management. The property development segment develops residential, industrial, and commercial properties. The company generates its revenue in mainland China.

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