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Capinfo Co (HKSE:01075) Gross Margin % : 29.30% (As of Jun. 2024)


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What is Capinfo Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Capinfo Co's Gross Profit for the six months ended in Jun. 2024 was HK$170 Mil. Capinfo Co's Revenue for the six months ended in Jun. 2024 was HK$579 Mil. Therefore, Capinfo Co's Gross Margin % for the quarter that ended in Jun. 2024 was 29.30%.

Warning Sign:

Capinfo Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.6%.


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

HKSE:01075' s Gross Margin % Range Over the Past 10 Years
Min: 10.48   Med: 22.22   Max: 31.06
Current: 10.48


During the past 13 years, the highest Gross Margin % of Capinfo Co was 31.06%. The lowest was 10.48%. And the median was 22.22%.

HKSE:01075's Gross Margin % is ranked worse than
92.02% of 2618 companies
in the Software industry
Industry Median: 41.435 vs HKSE:01075: 10.48

Capinfo Co had a gross margin of 29.30% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Capinfo Co was -6.60% per year.


Capinfo Co Gross Margin % Historical Data

The historical data trend for Capinfo Co'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.

Capinfo Co Gross Margin % Chart

Capinfo Co 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 22.56 22.27 15.13 24.57 14.11

Capinfo Co 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 36.60 18.53 41.87 -0.09 29.30

Competitive Comparison of Capinfo Co's Gross Margin %

For the Information Technology Services subindustry, Capinfo Co'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.


Capinfo Co's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Capinfo Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Capinfo Co's Gross Margin % falls into.



Capinfo Co Gross Margin % Calculation

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

Capinfo Co'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 )
=220 / 1559.271
=(Revenue - Cost of Goods Sold) / Revenue
=(1559.271 - 1339.293) / 1559.271
=14.11 %

Capinfo Co'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 )
=169.7 / 579.32
=(Revenue - Cost of Goods Sold) / Revenue
=(579.32 - 409.575) / 579.32
=29.30 %

* 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.


Capinfo Co  (HKSE:01075) 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

Capinfo Co had a gross margin of 29.30% for the quarter that ended in Jun. 2024 => Competition eroding margins


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.


Capinfo Co Gross Margin % Related Terms

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Capinfo Co Business Description

Traded in Other Exchanges
N/A
Address
No. 95 Longfusi Street, 5th Floor, Longfu Tower, Beijing, CHN, 100010
Capinfo Co Ltd is an information technology and service supplier. Its businesses mainly include software development and service, system integration, data processing service, and information professional service. Geographically, the company generates revenue from China.

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