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In Construction Holdings (HKSE:01500) Gross Margin % : -6.79% (As of Sep. 2024)


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What is In Construction Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. In Construction Holdings's Gross Profit for the six months ended in Sep. 2024 was HK$-9.4 Mil. In Construction Holdings's Revenue for the six months ended in Sep. 2024 was HK$138.1 Mil. Therefore, In Construction Holdings's Gross Margin % for the quarter that ended in Sep. 2024 was -6.79%.

Warning Sign:

In Construction Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -30.1%.


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

HKSE:01500' s Gross Margin % Range Over the Past 10 Years
Min: 1.58   Med: 13.8   Max: 39.14
Current: 5.04


During the past 11 years, the highest Gross Margin % of In Construction Holdings was 39.14%. The lowest was 1.58%. And the median was 13.80%.

HKSE:01500's Gross Margin % is ranked worse than
89.85% of 1675 companies
in the Construction industry
Industry Median: 20.17 vs HKSE:01500: 5.04

In Construction Holdings had a gross margin of -6.79% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for In Construction Holdings was -30.10% per year.


In Construction Holdings Gross Margin % Historical Data

The historical data trend for In Construction 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.

In Construction Holdings Gross Margin % Chart

In Construction Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.65 14.94 19.84 1.58 1.83

In Construction Holdings Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 -0.74 3.89 -15.21 11.79 -6.79

Competitive Comparison of In Construction Holdings's Gross Margin %

For the Engineering & Construction subindustry, In Construction 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.


In Construction Holdings's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, In Construction Holdings's Gross Margin % distribution charts can be found below:

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


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In Construction Holdings Gross Margin % Calculation

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

In Construction Holdings's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=7 / 383.102
=(Revenue - Cost of Goods Sold) / Revenue
=(383.102 - 376.086) / 383.102
=1.83 %

In Construction Holdings's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=-9.4 / 138.092
=(Revenue - Cost of Goods Sold) / Revenue
=(138.092 - 147.469) / 138.092
=-6.79 %

* 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.


In Construction Holdings  (HKSE:01500) 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

In Construction Holdings had a gross margin of -6.79% for the quarter that ended in Sep. 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.


In Construction Holdings Gross Margin % Related Terms

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In Construction Holdings Business Description

Traded in Other Exchanges
N/A
Address
5 Moreton Terrace, 26th Floor, Park Avenue Tower, Causeway Bay, Hong Kong, HKG
In Construction Holdings Ltd is a general and foundation contractor serving the Hong Kong building and construction industries. It is also involved in the categories of the foundation, demolition, site formation and ground investigation field works and registered general building contractor business. The group also provides services in Design and Build projects and offers quality control and site management in all foundation and construction work. Geographically, the group operates in Hong Kong.
Executives
Cheng Wing Cheong 2101 Beneficial owner
Kwan Kit Sum Kit 2202 Interest of your spouse
Lau Pak Man 2101 Beneficial owner

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