COUTF (Huicheng International Holdings) Gross Margin % : 42.53% (As of Dec. 2024)

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What is Huicheng International Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Huicheng International Holdings's Gross Profit for the six months ended in Dec. 2024 was $4.31 Mil. Huicheng International Holdings's Revenue for the six months ended in Dec. 2024 was $10.14 Mil. Therefore, Huicheng International Holdings's Gross Margin % for the quarter that ended in Dec. 2024 was 42.53%.

Warning Sign:

Huicheng International Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.1%.

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

COUTF' s Gross Margin % Range Over the Past 10 Years
Min: 39.39 Med: 64.23 Max: 77.92
Current: 52.01

During the past 13 years, the highest Gross Margin % of Huicheng International Holdings was 77.92%. The lowest was 39.39%. And the median was 64.23%.

COUTF's Gross Margin % is ranked better than
81.72% of 1023 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.01 vs COUTF: 52.01

Huicheng International Holdings had a gross margin of 42.53% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Huicheng International Holdings was -9.10% per year.

Huicheng International Holdings Gross Margin % Historical Data

The historical data trend for Huicheng International 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.

* Premium members only.

Huicheng International Holdings Gross Margin % Chart

Huicheng International Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Gross Margin %

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65.55

60.16

39.39

48.79

51.97

Huicheng International Holdings Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Gross Margin %	Get a 7-Day Free Trial															6.57	62.69	31.96	60.45	42.53

Competitive Comparison of Huicheng International Holdings's Gross Margin %

For the Apparel Manufacturing subindustry, Huicheng International 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.

Huicheng International Holdings's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Huicheng International Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Huicheng International Holdings's Gross Margin % falls into.

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Huicheng International Holdings Gross Margin % Calculation

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

Huicheng International Holdings's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )	=	Gross Profit (A: Dec. 2024 )	/	Revenue (A: Dec. 2024 )
	=	11.1	/	21.438
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(21.438 - 10.297)	/	21.438
	=	51.97 %

Huicheng International Holdings's Gross Margin for the quarter that ended in Dec. 2024 is calculated as

Gross Margin % (Q: Dec. 2024 )	=	Gross Profit (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	4.3	/	10.139
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10.139 - 5.827)	/	10.139
	=	42.53 %

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.

Huicheng International Holdings (OTCPK:COUTF) 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

Huicheng International Holdings had a gross margin of 42.53% for the quarter that ended in Dec. 2024 => Durable 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.

Huicheng International Holdings Gross Margin % Related Terms

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Huicheng International Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Huicheng International Holdings Ltd (OTCPK:COUTF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

01146:Hong Kong

Address

Tong Pu Road, No. 9 Lane 1225, Pu Tuo District, Shanghai, CHN, 200333

Website

https://www.hcihl.com

Huicheng International Holdings Ltd formerly China Outfitters Holdings Ltd is engaged in designing, manufacturing, marketing and selling apparel products and accessories in the People's Republic of China, with a focus on menswear. The company offers range of men's casual wear, including smart casual wear, outdoor casual wear, leisure wear and accessories, under several international brands. It sell products under the Santa Barbara Polo & Racquet Club ("SBPRC") brands under license.