Gross Margin % is calculated as gross profit divided by its revenue. Khoon Group's Gross Profit for the
six
months ended in Jun. 2024 was HK$21.5 Mil. Khoon Group's Revenue for the
six
months ended in Jun. 2024 was HK$215.5 Mil. Therefore, Khoon Group's Gross Margin % for the quarter that ended in Jun. 2024 was 10.00%.
Warning Sign:
Khoon Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -21.5%.
The historical rank and industry rank for Khoon Group's Gross Margin % or its related term are showing as below:
HKSE:00924'
s Gross Margin % Range Over the Past 10 Years
Min: 4.88 Med: 12.47 Max: 19.68
Current: 8.46
During the past 9 years, the highestGross Margin % of Khoon Group was 19.68%. The lowest was 4.88%. And the median was 12.47%.
HKSE:00924's Gross Margin % is ranked worse than 82.09% of 1664
companies
in the Construction industry
Industry Median: 20.015
vs HKSE:00924: 8.46
Khoon Group had a gross margin of 10.00% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Khoon Group was -21.50% per year.
Khoon Group Gross Margin % Historical Data
The historical data trend for Khoon Group'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.
Competitive Comparison of Khoon Group's Gross Margin %
For the Engineering & Construction subindustry, Khoon Group'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.
Khoon Group's Gross Margin % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Khoon Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Khoon Group's Gross Margin % falls into.
* 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.
Khoon Group (HKSE:00924) 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
Khoon Group had a gross margin of 10.00% for the quarter that ended in Jun. 2024 => 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.
Khoon Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Khoon Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Khoon Group Ltd is a mechanical and electrical service provider specializing in providing electrical engineering solutions. The electrical engineering services are widely required in new building developments, redevelopment, and upgrading projects, which involve residential, commercial, and industrial buildings. Under electrical engineering, the company provides services like customization and installation of transmission and distribution systems, lighting systems, air-conditioning and mechanical ventilation systems, underground cable piping systems, and others. Geographically, all of the company's revenue is derived from Singapore.
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