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Edvance International Holdings (HKSE:01410) Gross Margin % : 23.57% (As of Sep. 2023)


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What is Edvance International Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Edvance International Holdings's Gross Profit for the six months ended in Sep. 2023 was HK$68.5 Mil. Edvance International Holdings's Revenue for the six months ended in Sep. 2023 was HK$290.7 Mil. Therefore, Edvance International Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 23.57%.

Warning Sign:

Edvance International 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 Edvance International Holdings's Gross Margin % or its related term are showing as below:

HKSE:01410' s Gross Margin % Range Over the Past 10 Years
Min: 23.52   Med: 27.71   Max: 30.21
Current: 23.52


During the past 9 years, the highest Gross Margin % of Edvance International Holdings was 30.21%. The lowest was 23.52%. And the median was 27.71%.

HKSE:01410's Gross Margin % is ranked worse than
75.93% of 2638 companies
in the Software industry
Industry Median: 41.845 vs HKSE:01410: 23.52

Edvance International Holdings had a gross margin of 23.57% for the quarter that ended in Sep. 2023 => Competition eroding margins

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


Edvance International Holdings Gross Margin % Historical Data

The historical data trend for Edvance International 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.

Edvance International Holdings Gross Margin % Chart

Edvance International Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 26.66 26.59 30.21 24.44 23.78

Edvance International Holdings Semi-Annual Data
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 25.81 23.29 24.07 23.46 23.57

Competitive Comparison of Edvance International Holdings's Gross Margin %

For the Software - Infrastructure subindustry, Edvance International 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.


Edvance International Holdings's Gross Margin % Distribution in the Software Industry

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

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



Edvance International Holdings Gross Margin % Calculation

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

Edvance International 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 )
=137.3 / 577.494
=(Revenue - Cost of Goods Sold) / Revenue
=(577.494 - 440.19) / 577.494
=23.78 %

Edvance International 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 )
=68.5 / 290.659
=(Revenue - Cost of Goods Sold) / Revenue
=(290.659 - 222.151) / 290.659
=23.57 %

* 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.


Edvance International Holdings  (HKSE:01410) 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

Edvance International Holdings had a gross margin of 23.57% for the quarter that ended in Sep. 2023 => 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.


Edvance International Holdings Gross Margin % Related Terms

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


Edvance International Holdings (HKSE:01410) Business Description

Traded in Other Exchanges
N/A
Address
98 How Ming Street, 25th Floor, Tower 1, The Millennity, Kwun Tong, Kowloon, Hong Kong, HKG
Edvance International Holdings Ltd is an investment holding company. The company is engaged in the provision of information technology security products and services. Its Cybersecurity products segment includes network security products, system security products and application and data security products. The cybersecurity services segment is engaged in the provision of technical implementation, maintenance, and support services. Digital assets Financial services and investment business refers to the provision of financial services to customers, venture investment and securities trading by the Group. It generates maximum revenue from the Cybersecurity security products segment. Geographically, it derives a majority of its revenue from Hong Kong.
Executives
Liu Yui Ting Raymond 2101 Beneficial owner
Success Vision International Group Limited 2101 Beneficial owner
Earning Gear Inc. 2101 Beneficial owner
Mind Bright Limited 2101 Beneficial owner
Cheng Chui Ying 2202 Interest of your spouse
Lin Fai 2202 Interest of your spouse
Lo Wai Ho Ashley 2201 Interest of corporation controlled by you
Tang Sing Hing Kenny 2201 Interest of corporation controlled by you
Yip Lai Ching 2202 Interest of your spouse
Cheung Mo Chi 2202 Interest of your spouse
Von John 2201 Interest of corporation controlled by you

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