Shifang Holding Ltd gross margin has been in long-term decline. The average rate of decline per year is -15.2%.
The historical rank and industry rank for Shifang Holding's Gross Margin % or its related term are showing as below:
HKSE:01831'
s Gross Margin % Range Over the Past 10 Years
Min: -8.73 Med: 17.02 Max: 33.62
Current: 17.27
During the past 13 years, the highestGross Margin % of Shifang Holding was 33.62%. The lowest was -8.73%. And the median was 17.02%.
HKSE:01831's Gross Margin % is ranked worse than 82.43% of 956
companies
in the Media - Diversified industry
Industry Median: 38.44
vs HKSE:01831: 17.27
Shifang Holding had a gross margin of 14.58% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Shifang Holding was -15.20% per year.
Shifang Holding Gross Margin % Historical Data
The historical data trend for Shifang Holding'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 Shifang Holding's Gross Margin %
For the Advertising Agencies subindustry, Shifang Holding'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.
Shifang Holding's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Shifang Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shifang Holding'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
Shifang Holding had a gross margin of 14.58% for the quarter that ended in Dec. 2023 => 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.
Shifang Holding Gross Margin % Related Terms
Thank you for viewing the detailed overview of Shifang Holding's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Shifang Holding Ltd is an investment holding company engaged in the business of publishing and advertising in the People's Republic of China. The company operates in two business segments; Publishing and advertising segment includes the provision of advertising services, marketing and consulting services, printing services, and agency commission from sales of service packs, and The tourism and integrated developments segment include the provision of tourism and integrated services through its media, resort, and eco-tourism integrated development projects and sales of agricultural products, including the Yongtai Distinctive Town Project and Cooperative Project in YongFu Town. The company operates in the PRC.
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