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Landsea Green Management (HKSE:00106) Gross Margin % : 18.37% (As of Jun. 2023)


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What is Landsea Green Management Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Landsea Green Management's Gross Profit for the six months ended in Jun. 2023 was HK$796 Mil. Landsea Green Management's Revenue for the six months ended in Jun. 2023 was HK$4,335 Mil. Therefore, Landsea Green Management's Gross Margin % for the quarter that ended in Jun. 2023 was 18.37%.

Warning Sign:

Landsea Green Management Ltd gross margin has been in long-term decline. The average rate of decline per year is -16.2%.


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

HKSE:00106' s Gross Margin % Range Over the Past 10 Years
Min: 9.66   Med: 26.39   Max: 67.34
Current: 12.29


During the past 13 years, the highest Gross Margin % of Landsea Green Management was 67.34%. The lowest was 9.66%. And the median was 26.39%.

HKSE:00106's Gross Margin % is ranked worse than
87.29% of 1652 companies
in the Real Estate industry
Industry Median: 36.775 vs HKSE:00106: 12.29

Landsea Green Management had a gross margin of 18.37% for the quarter that ended in Jun. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Landsea Green Management was -16.20% per year.


Landsea Green Management Gross Margin % Historical Data

The historical data trend for Landsea Green Management'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.

Landsea Green Management Gross Margin % Chart

Landsea Green Management 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 28.26 19.00 20.67 9.66 12.29

Landsea Green Management 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 19.18 20.36 2.21 18.37 7.54

Competitive Comparison of Landsea Green Management's Gross Margin %

For the Real Estate - Development subindustry, Landsea Green Management'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.


Landsea Green Management's Gross Margin % Distribution in the Real Estate Industry

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

* The bar in red indicates where Landsea Green Management's Gross Margin % falls into.



Landsea Green Management Gross Margin % Calculation

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

Landsea Green Management's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=1511.8 / 15654.689
=(Revenue - Cost of Goods Sold) / Revenue
=(15654.689 - 14142.845) / 15654.689
=9.66 %

Landsea Green Management's Gross Margin for the quarter that ended in Jun. 2023 is calculated as


Gross Margin % (Q: Jun. 2023 )=Gross Profit (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=796.2 / 4335.478
=(Revenue - Cost of Goods Sold) / Revenue
=(4335.478 - 3539.262) / 4335.478
=18.37 %

* 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.


Landsea Green Management  (HKSE:00106) 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

Landsea Green Management had a gross margin of 18.37% for the quarter that ended in Jun. 2023 => No sustainable 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.


Landsea Green Management Gross Margin % Related Terms

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Landsea Green Management (HKSE:00106) Business Description

Traded in Other Exchanges
Address
8 Queen’s Road East, Unit 406, 4th Floor, Wan Chai, Hong Kong, HKG
Landsea Green Management Ltd formerly Landsea Green Properties Co Ltd is engaged in the green residential property development business. Its operations are organized into four operating segments Property development and sales in Mainland China; Property development and sales in the United States, Management services; and Office property investment. Its primary geographic markets are Hong Kong, Mainland China, and the United States, of which prime revenue is derived from the United States.

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