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Ho Hup Construction Co Bhd (XKLS:5169) Gross Margin % : 24.30% (As of Mar. 2024)


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What is Ho Hup Construction Co Bhd Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ho Hup Construction Co Bhd's Gross Profit for the three months ended in Mar. 2024 was RM4.8 Mil. Ho Hup Construction Co Bhd's Revenue for the three months ended in Mar. 2024 was RM19.7 Mil. Therefore, Ho Hup Construction Co Bhd's Gross Margin % for the quarter that ended in Mar. 2024 was 24.30%.

Warning Sign:

Ho Hup Construction Co Bhd gross margin has been in long-term decline. The average rate of decline per year is -10.6%.


The historical rank and industry rank for Ho Hup Construction Co Bhd's Gross Margin % or its related term are showing as below:

XKLS:5169' s Gross Margin % Range Over the Past 10 Years
Min: 20.41   Med: 38.42   Max: 56.98
Current: 20.41


During the past 13 years, the highest Gross Margin % of Ho Hup Construction Co Bhd was 56.98%. The lowest was 20.41%. And the median was 38.42%.

XKLS:5169's Gross Margin % is ranked better than
56.02% of 1610 companies
in the Construction industry
Industry Median: 19.215 vs XKLS:5169: 20.41

Ho Hup Construction Co Bhd had a gross margin of 24.30% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Ho Hup Construction Co Bhd was -10.60% per year.


Ho Hup Construction Co Bhd Gross Margin % Historical Data

The historical data trend for Ho Hup Construction Co Bhd'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.

Ho Hup Construction Co Bhd Gross Margin % Chart

Ho Hup Construction Co Bhd 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 40.38 56.98 40.14 23.56 22.34

Ho Hup Construction Co Bhd Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 27.68 25.10 29.14 -26.83 24.30

Competitive Comparison of Ho Hup Construction Co Bhd's Gross Margin %

For the Engineering & Construction subindustry, Ho Hup Construction Co Bhd'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.


Ho Hup Construction Co Bhd's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ho Hup Construction Co Bhd's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ho Hup Construction Co Bhd's Gross Margin % falls into.



Ho Hup Construction Co Bhd Gross Margin % Calculation

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

Ho Hup Construction Co Bhd'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 )
=42 / 187.943
=(Revenue - Cost of Goods Sold) / Revenue
=(187.943 - 145.95) / 187.943
=22.34 %

Ho Hup Construction Co Bhd's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=4.8 / 19.688
=(Revenue - Cost of Goods Sold) / Revenue
=(19.688 - 14.903) / 19.688
=24.30 %

* 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.


Ho Hup Construction Co Bhd  (XKLS:5169) 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

Ho Hup Construction Co Bhd had a gross margin of 24.30% for the quarter that ended in Mar. 2024 => 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.


Ho Hup Construction Co Bhd Gross Margin % Related Terms

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Ho Hup Construction Co Bhd (XKLS:5169) Business Description

Traded in Other Exchanges
N/A
Address
Level 18, Ho Hup Tower, No.1, Jalan Persiaran Jalil 1, Bandar Bukit Jalil, Kuala Lumpur, MYS, 57000
Ho Hup Construction Co Bhd is engaged in the activities of investment holding, foundation engineering, civil engineering, building contracting works and the provision of management services for subsidiary companies. Its business division includes Construction, Property development, Building materials, and Others. All the group's revenue is derived from Malaysia.

Ho Hup Construction Co Bhd (XKLS:5169) Headlines

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