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TBK & Sons Holdings (HKSE:01960) Gross Margin % : 4.07% (As of Dec. 2023)


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What is TBK & Sons Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. TBK & Sons Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$4.4 Mil. TBK & Sons Holdings's Revenue for the six months ended in Dec. 2023 was HK$108.5 Mil. Therefore, TBK & Sons Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 4.07%.

Warning Sign:

TBK & Sons Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -35%.


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

HKSE:01960' s Gross Margin % Range Over the Past 10 Years
Min: 3.53   Med: 20.96   Max: 27.12
Current: 3.53


During the past 8 years, the highest Gross Margin % of TBK & Sons Holdings was 27.12%. The lowest was 3.53%. And the median was 20.96%.

HKSE:01960's Gross Margin % is ranked worse than
91.39% of 1614 companies
in the Construction industry
Industry Median: 19.295 vs HKSE:01960: 3.53

TBK & Sons Holdings had a gross margin of 4.07% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for TBK & Sons Holdings was -35.00% per year.


TBK & Sons Holdings Gross Margin % Historical Data

The historical data trend for TBK & Sons Holdings'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.

TBK & Sons Holdings Gross Margin % Chart

TBK & Sons Holdings Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial 21.31 22.52 7.03 3.74 3.87

TBK & Sons Holdings Semi-Annual Data
Jun16 Jun17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 4.12 3.49 4.05 3.01 4.07

Competitive Comparison of TBK & Sons Holdings's Gross Margin %

For the Engineering & Construction subindustry, TBK & Sons 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.


TBK & Sons Holdings's Gross Margin % Distribution in the Construction Industry

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

* The bar in red indicates where TBK & Sons Holdings's Gross Margin % falls into.



TBK & Sons Holdings Gross Margin % Calculation

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

TBK & Sons Holdings's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=24.1 / 622.465
=(Revenue - Cost of Goods Sold) / Revenue
=(622.465 - 598.401) / 622.465
=3.87 %

TBK & Sons Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=4.4 / 108.477
=(Revenue - Cost of Goods Sold) / Revenue
=(108.477 - 104.064) / 108.477
=4.07 %

* 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.


TBK & Sons Holdings  (HKSE:01960) 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

TBK & Sons Holdings had a gross margin of 4.07% 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.


TBK & Sons Holdings Gross Margin % Related Terms

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TBK & Sons Holdings (HKSE:01960) Business Description

Traded in Other Exchanges
N/A
Address
Batu 2 Jalan Seremban, Lot 333, Kampung Paya, Port Dickson, NSN, MYS, 71000
TBK & Sons Holdings Ltd is an investment holding company. Its operating segments are: Site preparation works projects, Construction and renovation works projects, Civil works projects, Building works projects, and Trading of oil and related products. The company generates a majority of its revenue from the trading of oil and related products. The civil works projects segment deals in site preparation work such as earthwork, demolition works, and temporary facilities infrastructure construction, including building temporary site offices, canteens, warehouses, and other civil works. Geographically, it operates in Hong Kong, Malaysia, and the PRC, with the maximum revenue generated from the People's Republic of China.
Executives
Fuji Investment Spc 2201 Interest of corporation controlled by you
Victory Lead Ventures Limited 2101 Beneficial owner
Tan Han Peng 2201 Interest of corporation controlled by you
Tan Hun Tiong 2201 Interest of corporation controlled by you
Tan Siew Hong 2202 Interest of your spouse
Tbk & Sons International Limited 2101 Beneficial owner
Yang Dunwei 2201 Interest of corporation controlled by you
Hong Hui Guo Ji You Xian Gong Si 2106 Person having a security interest in shares

TBK & Sons Holdings (HKSE:01960) Headlines

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