HKSE:01660's Gross Margin % is ranked worse than 65.58% of 154
companies
in the Industrial Distribution industry
Industry Median: 23.645
vs HKSE:01660: 18.54
Zhaobangji Lifestyle Holdings had a gross margin of 25.13% for the quarter that ended in Sep. 2024 => Competition eroding margins
* 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 Zhaobangji Lifestyle Holdings's Gross Margin %
For the Industrial Distribution subindustry, Zhaobangji Lifestyle 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.
Zhaobangji Lifestyle Holdings's Gross Margin % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Zhaobangji Lifestyle Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhaobangji Lifestyle Holdings'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.
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
Zhaobangji Lifestyle Holdings had a gross margin of 25.13% for the quarter that ended in Sep. 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.
Zhaobangji Lifestyle Holdings Gross Margin % Related Terms
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Zhaobangji Lifestyle Holdings Business Description
Zhaobangji Lifestyle Holdings Ltd is an investment holding company. Through its subsidiaries, the organization is engaged in providing construction machinery trading and leasing services. The operating segments of group are Trading; Leasing; Property management; Property leasing, subletting, retail and others; Money lending; and Transportation. It derives maximum revenue from the Leasing segment which involves the Leasing of machinery and provision of related services. Geographically, the company generates a majority of its revenue from Hong Kong.
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