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China Merchants Land (HKSE:00978) Gross Margin % : 3.79% (As of Jun. 2024)


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What is China Merchants Land Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China Merchants Land's Gross Profit for the six months ended in Jun. 2024 was HK$214 Mil. China Merchants Land's Revenue for the six months ended in Jun. 2024 was HK$5,646 Mil. Therefore, China Merchants Land's Gross Margin % for the quarter that ended in Jun. 2024 was 3.79%.

Warning Sign:

China Merchants Land Ltd gross margin has been in long-term decline. The average rate of decline per year is -19.3%.


The historical rank and industry rank for China Merchants Land's Gross Margin % or its related term are showing as below:

HKSE:00978' s Gross Margin % Range Over the Past 10 Years
Min: 9   Med: 26.38   Max: 33.36
Current: 9


During the past 13 years, the highest Gross Margin % of China Merchants Land was 33.36%. The lowest was 9.00%. And the median was 26.38%.

HKSE:00978's Gross Margin % is ranked worse than
90.07% of 1642 companies
in the Real Estate industry
Industry Median: 36.125 vs HKSE:00978: 9.00

China Merchants Land had a gross margin of 3.79% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China Merchants Land was -19.30% per year.


China Merchants Land Gross Margin % Historical Data

The historical data trend for China Merchants Land'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.

China Merchants Land Gross Margin % Chart

China Merchants Land 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 32.54 24.90 18.49 13.40 13.44

China Merchants Land Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 15.65 11.48 19.29 10.41 3.79

Competitive Comparison of China Merchants Land's Gross Margin %

For the Real Estate - Diversified subindustry, China Merchants Land'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.


China Merchants Land's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, China Merchants Land's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China Merchants Land's Gross Margin % falls into.



China Merchants Land Gross Margin % Calculation

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

China Merchants Land's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=4233.5 / 31501.756
=(Revenue - Cost of Goods Sold) / Revenue
=(31501.756 - 27268.238) / 31501.756
=13.44 %

China Merchants Land's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=213.8 / 5645.556
=(Revenue - Cost of Goods Sold) / Revenue
=(5645.556 - 5431.717) / 5645.556
=3.79 %

* 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.


China Merchants Land  (HKSE:00978) 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

China Merchants Land had a gross margin of 3.79% 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.


China Merchants Land Gross Margin % Related Terms

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


China Merchants Land Business Description

Traded in Other Exchanges
Address
Nos. 168-200 Connaught Road Central, Room 2603 to 2606, 26th Floor, China Merchants Tower, Shun Tak Centre, Hong Kong, HKG
China Merchants Land Ltd is an investment holding company that along with its subsidiaries operates in two segments; The Properties segment, which generates a majority of the company's sales, is engaged in the development and sales of properties, and property leasing, and the Asset Management segment which represents its investment in office premises and shopping malls.
Executives
China Merchants Group Co., Ltd. 2201 Interest of corporation controlled by you
China Merchants Shekou Industrial Zone Holdings Company Limited 2201 Interest of corporation controlled by you

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