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Vanov Holdings Co (HKSE:02260) Operating Margin % : 29.49% (As of Dec. 2023)


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What is Vanov Holdings Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Vanov Holdings Co's Operating Income for the six months ended in Dec. 2023 was HK$48.7 Mil. Vanov Holdings Co's Revenue for the six months ended in Dec. 2023 was HK$165.0 Mil. Therefore, Vanov Holdings Co's Operating Margin % for the quarter that ended in Dec. 2023 was 29.49%.

Warning Sign:

Vanov Holdings Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.5%.

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

HKSE:02260' s Operating Margin % Range Over the Past 10 Years
Min: 28.02   Med: 29.49   Max: 31.59
Current: 28.02


HKSE:02260's Operating Margin % is ranked better than
96.53% of 288 companies
in the Forest Products industry
Industry Median: 3.825 vs HKSE:02260: 28.02

Vanov Holdings Co's 5-Year Average Operating Margin % Growth Rate was -1.50% per year.

Vanov Holdings Co's Operating Income for the six months ended in Dec. 2023 was HK$48.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$72.8 Mil.


Vanov Holdings Co Operating Margin % Historical Data

The historical data trend for Vanov Holdings Co's Operating 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.

Vanov Holdings Co Operating Margin % Chart

Vanov Holdings Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial 28.52 30.12 31.33 28.85 28.02

Vanov Holdings Co Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.23 20.90 33.23 25.47 29.49

Competitive Comparison of Vanov Holdings Co's Operating Margin %

For the Paper & Paper Products subindustry, Vanov Holdings Co's Operating Margin %, along with its competitors' market caps and Operating 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.


Vanov Holdings Co's Operating Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Vanov Holdings Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Vanov Holdings Co's Operating Margin % falls into.



Vanov Holdings Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Vanov Holdings Co's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=72.759 / 259.63
=28.02 %

Vanov Holdings Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=48.655 / 164.974
=29.49 %

* 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.


Vanov Holdings Co  (HKSE:02260) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Vanov Holdings Co Operating Margin % Related Terms

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Vanov Holdings Co (HKSE:02260) Business Description

Traded in Other Exchanges
N/A
Address
No. 519, Section 2, Xinhua Avenue, Chengdu Strait Science and Technology, Industry Development Park, Sichuan Province, Wenjiang District, Chengdu, CHN
Vanov Holdings Co Ltd is an investment holding company and its subsidiaries are principally engaged in the design, manufacture and sales of papermaking felts. The company has its variety of products which includes Packaging papermaking felts, Specialty papermaking felts, Printing papermaking felts, Printing papermaking felts, Pulp papermaking felts. The company generates majority of its revenue from The PRC region.

Vanov Holdings Co (HKSE:02260) Headlines

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