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Trendzon Holdings Group (HKSE:01865) Gross Margin % : 11.02% (As of Sep. 2023)


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What is Trendzon Holdings Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Trendzon Holdings Group's Gross Profit for the six months ended in Sep. 2023 was HK$18.5 Mil. Trendzon Holdings Group's Revenue for the six months ended in Sep. 2023 was HK$168.3 Mil. Therefore, Trendzon Holdings Group's Gross Margin % for the quarter that ended in Sep. 2023 was 11.02%.

Warning Sign:

Trendzon Holdings Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -14.9%.


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

HKSE:01865' s Gross Margin % Range Over the Past 10 Years
Min: 12.34   Med: 21.55   Max: 31.59
Current: 13.83


During the past 8 years, the highest Gross Margin % of Trendzon Holdings Group was 31.59%. The lowest was 12.34%. And the median was 21.55%.

HKSE:01865's Gross Margin % is ranked worse than
64.06% of 1614 companies
in the Construction industry
Industry Median: 19.495 vs HKSE:01865: 13.83

Trendzon Holdings Group had a gross margin of 11.02% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Trendzon Holdings Group was -14.90% per year.


Trendzon Holdings Group Gross Margin % Historical Data

The historical data trend for Trendzon Holdings 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.

Trendzon Holdings Group Gross Margin % Chart

Trendzon Holdings Group Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial 25.74 16.21 22.97 16.69 12.34

Trendzon Holdings Group Semi-Annual Data
Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 2.27 29.22 5.90 15.92 11.02

Competitive Comparison of Trendzon Holdings Group's Gross Margin %

For the Engineering & Construction subindustry, Trendzon Holdings 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.


Trendzon Holdings Group's Gross Margin % Distribution in the Construction Industry

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

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



Trendzon Holdings Group Gross Margin % Calculation

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

Trendzon Holdings Group's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=43.4 / 351.906
=(Revenue - Cost of Goods Sold) / Revenue
=(351.906 - 308.467) / 351.906
=12.34 %

Trendzon Holdings Group's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=18.5 / 168.298
=(Revenue - Cost of Goods Sold) / Revenue
=(168.298 - 149.756) / 168.298
=11.02 %

* 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.


Trendzon Holdings Group  (HKSE:01865) 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

Trendzon Holdings Group had a gross margin of 11.02% for the quarter that ended in Sep. 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.


Trendzon Holdings Group Gross Margin % Related Terms

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Trendzon Holdings Group (HKSE:01865) Business Description

Traded in Other Exchanges
N/A
Address
The Gateway, Suite 2108, Prudential Tower, Harbour City, Hong Kong, HKG, 758110
Trendzon Holdings Group Ltd is an investment holding company. It is engaged in the provision of infrastructural pipeline construction and related engineering services mainly to private and public utilities companies in the gas, water, telecommunications, and power industries, trading of building materials, brokerage, placing and margin financing services. The company's operating segment includes Construction services, Brokerage, placing and margin financing services, and Trading of building materials. It generates maximum revenue from the Construction contracts segment. Geographically, it derives a majority of its revenue from Singapore.
Executives
Zhang Jiancheng 2201 Interest of corporation controlled by you
Zhong Bei Zi Ben You Xian Gong Si 2101 Beneficial owner
Shang Hai He Ri Tou Zi You Xian Gong Si 2101 Beneficial owner

Trendzon Holdings Group (HKSE:01865) Headlines

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