Most Kwai Chung Ltd gross margin has been in long-term decline. The average rate of decline per year is -17.6%.
The historical rank and industry rank for Most Kwai Chung's Gross Margin % or its related term are showing as below:
HKSE:01716'
s Gross Margin % Range Over the Past 10 Years
Min: 14.66 Med: 41.8 Max: 66.27
Current: 35.52
During the past 9 years, the highestGross Margin % of Most Kwai Chung was 66.27%. The lowest was 14.66%. And the median was 41.80%.
HKSE:01716's Gross Margin % is ranked worse than 54.09% of 954
companies
in the Media - Diversified industry
Industry Median: 38.5
vs HKSE:01716: 35.52
Most Kwai Chung had a gross margin of 36.30% for the quarter that ended in Sep. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Most Kwai Chung was -17.60% per year.
Most Kwai Chung Gross Margin % Historical Data
The historical data trend for Most Kwai Chung'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.
Competitive Comparison of Most Kwai Chung's Gross Margin %
For the Advertising Agencies subindustry, Most Kwai Chung'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.
Most Kwai Chung's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Most Kwai Chung's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Most Kwai Chung'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.
Most Kwai Chung (HKSE:01716) 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
Most Kwai Chung had a gross margin of 36.30% 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.
Most Kwai Chung Gross Margin % Related Terms
Thank you for viewing the detailed overview of Most Kwai Chung's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Most Kwai Chung Ltd is an investment holding company. The company is engaged in the provision of digital media services, print media services and other media services which include events organization and artistes management. Its operating segment includes Digital media services, Print media services, and Other media services. Digital media services is engaged in the provision of one-stop advertising solution packages. The Print media services represent advertorial production and advertisement placement services and sale of publications including books and magazines. It generates maximum revenue from the Digital media services segment. Geographically, it operates only in Hong Kong.
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