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Scholar Education Group (HKSE:01769) Gross Margin % : 44.38% (As of Jun. 2024)


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What is Scholar Education Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Scholar Education Group's Gross Profit for the six months ended in Jun. 2024 was HK$190.7 Mil. Scholar Education Group's Revenue for the six months ended in Jun. 2024 was HK$429.7 Mil. Therefore, Scholar Education Group's Gross Margin % for the quarter that ended in Jun. 2024 was 44.38%.


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

HKSE:01769' s Gross Margin % Range Over the Past 10 Years
Min: 32.86   Med: 36.33   Max: 42.72
Current: 39.14


During the past 9 years, the highest Gross Margin % of Scholar Education Group was 42.72%. The lowest was 32.86%. And the median was 36.33%.

HKSE:01769's Gross Margin % is ranked worse than
64.14% of 251 companies
in the Education industry
Industry Median: 48.27 vs HKSE:01769: 39.14

Scholar Education Group had a gross margin of 44.38% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Scholar Education Group was -0.20% per year.


Scholar Education Group Gross Margin % Historical Data

The historical data trend for Scholar Education Group'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.

Scholar Education Group Gross Margin % Chart

Scholar Education Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 34.78 37.88 34.49 41.81 39.12

Scholar Education Group Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 35.18 41.40 42.12 44.38 34.48

Competitive Comparison of Scholar Education Group's Gross Margin %

For the Education & Training Services subindustry, Scholar Education Group'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.


Scholar Education Group's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Scholar Education Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Scholar Education Group's Gross Margin % falls into.


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Scholar Education Group Gross Margin % Calculation

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

Scholar Education Group'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 )
=260.9 / 624.126
=(Revenue - Cost of Goods Sold) / Revenue
=(624.126 - 363.204) / 624.126
=41.81 %

Scholar Education Group'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 )
=190.7 / 429.662
=(Revenue - Cost of Goods Sold) / Revenue
=(429.662 - 238.965) / 429.662
=44.38 %

* 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.


Scholar Education Group  (HKSE:01769) 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

Scholar Education Group had a gross margin of 44.38% for the quarter that ended in Jun. 2024 => Durable 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.


Scholar Education Group Gross Margin % Related Terms

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


Scholar Education Group Business Description

Traded in Other Exchanges
N/A
Address
29 Youyi Road, Rooms 401-410, 4th Floor, Yunfeng Garden, Jianan Community, Nanhu Street, Luohu District, Shenzhen, CHN, 518049
Scholar Education Group is a China-based investment holding company. The Company is principally engaged in the provision of after school education services through academic preparation program and early primary education program. The academic preparation program is delivered under Sheng Xue brand, and the early primary education program is delivered under Le Xue brand. The Company principally conducts its businesses in Guangdong, China.
Executives
Brown Brothers Harriman & Co. 2502 Approved lending agent
Fidelity Funds 2101 Beneficial owner
Pandanus Partners L.p. 2201 Interest of corporation controlled by you
Pandanus Associates Inc. 2201 Interest of corporation controlled by you
Fil Limited 2201 Interest of corporation controlled by you
The Bank Of New York Mellon Corporation 2201 Interest of corporation controlled by you
Yu Xi International Company Limited 2201 Interest of corporation controlled by you
Chen Qiyuan 2201 Interest of corporation controlled by you
Sky Noon International Company Limited 2101 Beneficial owner
China Great Wall Amc (international) Holdings Company Limited 2201 Interest of corporation controlled by you
China Resources Company Limited 2201 Interest of corporation controlled by you
Cre Alliance Fund I L.p. 2201 Interest of corporation controlled by you
Chen Hongyu 2101 Beneficial owner
Cre Alliance Fund I Lp Limited 2201 Interest of corporation controlled by you
Cre Glory Company Limited 2101 Beneficial owner

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