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Extrawell Pharmaceutical Holdings (HKSE:00858) Gross Margin % : 49.40% (As of Sep. 2023)


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What is Extrawell Pharmaceutical Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Extrawell Pharmaceutical Holdings's Gross Profit for the six months ended in Sep. 2023 was HK$14.89 Mil. Extrawell Pharmaceutical Holdings's Revenue for the six months ended in Sep. 2023 was HK$30.14 Mil. Therefore, Extrawell Pharmaceutical Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 49.40%.

Warning Sign:

Extrawell Pharmaceutical Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.7%.


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

HKSE:00858' s Gross Margin % Range Over the Past 10 Years
Min: 39.63   Med: 49.06   Max: 55.59
Current: 47.36


During the past 13 years, the highest Gross Margin % of Extrawell Pharmaceutical Holdings was 55.59%. The lowest was 39.63%. And the median was 49.06%.

HKSE:00858's Gross Margin % is ranked better than
51.62% of 986 companies
in the Drug Manufacturers industry
Industry Median: 46.51 vs HKSE:00858: 47.36

Extrawell Pharmaceutical Holdings had a gross margin of 49.40% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Extrawell Pharmaceutical Holdings was -2.70% per year.


Extrawell Pharmaceutical Holdings Gross Margin % Historical Data

The historical data trend for Extrawell Pharmaceutical 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.

Extrawell Pharmaceutical Holdings Gross Margin % Chart

Extrawell Pharmaceutical Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 55.59 55.32 54.02 50.80 42.91

Extrawell Pharmaceutical Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 54.78 45.13 39.69 45.76 49.40

Competitive Comparison of Extrawell Pharmaceutical Holdings's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Extrawell Pharmaceutical 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.


Extrawell Pharmaceutical Holdings's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Extrawell Pharmaceutical Holdings's Gross Margin % distribution charts can be found below:

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



Extrawell Pharmaceutical Holdings Gross Margin % Calculation

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

Extrawell Pharmaceutical Holdings's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=31.1 / 72.577
=(Revenue - Cost of Goods Sold) / Revenue
=(72.577 - 41.434) / 72.577
=42.91 %

Extrawell Pharmaceutical Holdings's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=14.9 / 30.141
=(Revenue - Cost of Goods Sold) / Revenue
=(30.141 - 15.25) / 30.141
=49.40 %

* 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.


Extrawell Pharmaceutical Holdings  (HKSE:00858) 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

Extrawell Pharmaceutical Holdings had a gross margin of 49.40% for the quarter that ended in Sep. 2023 => 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.


Extrawell Pharmaceutical Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Extrawell Pharmaceutical Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Extrawell Pharmaceutical Holdings (HKSE:00858) Business Description

Traded in Other Exchanges
N/A
Address
979 King’s Road, Suites 2206-08, 22nd Floor, Devon House, Taikoo Place, Quarry Bay, Hong Kong, HKG
Extrawell Pharmaceutical Holdings Ltd is an investment holding company. The company's operating segment includes Manufacturing; Trading and Gene Development. It generates maximum revenue from the Manufacturing segment. The manufacturing segment is engaged in the development, manufacture, and sales of pharmaceutical products. Its trading segment is engaged in the marketing and distribution of imported pharmaceutical products. The gene development segment is engaged in the commercial exploitation and development of genome-related technology. Geographically, it derives a majority of its revenue from China.
Executives
Mao Yumin 2201 Interest of corporation controlled by you
Biowindow Gene Development (hong Kong) Limited 2201 Interest of corporation controlled by you
Ease Gold Investments Limited 2201 Interest of corporation controlled by you
Jnj Investments Ltd 2201 Interest of corporation controlled by you
United Gene Group Ltd 2201 Interest of corporation controlled by you
United Gene Holdings Limited 2201 Interest of corporation controlled by you
United Gene International Holdings Group Limited 2101 Beneficial owner
Xie Yi 2201 Interest of corporation controlled by you
Huang Zhenping 2101 Beneficial owner
United Gene Industry Group Limited 2101 Beneficial owner
Chen Xuhua 2202 Interest of your spouse
Cheng Yong 2201 Interest of corporation controlled by you

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