Cathay Media And Education Group (HKSE:01981) Gross Margin % : 33.02% (As of Dec. 2023)

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What is Cathay Media And Education Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cathay Media And Education Group's Gross Profit for the six months ended in Dec. 2023 was HK$138.1 Mil. Cathay Media And Education Group's Revenue for the six months ended in Dec. 2023 was HK$418.1 Mil. Therefore, Cathay Media And Education Group's Gross Margin % for the quarter that ended in Dec. 2023 was 33.02%.

Warning Sign:

Cathay Media And Education Group Inc gross margin has been in long-term decline. The average rate of decline per year is -5.9%.

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

HKSE:01981' s Gross Margin % Range Over the Past 10 Years
Min: 36.6 Med: 48.29 Max: 55.64
Current: 36.6

During the past 7 years, the highest Gross Margin % of Cathay Media And Education Group was 55.64%. The lowest was 36.60%. And the median was 48.29%.

HKSE:01981's Gross Margin % is ranked worse than
69.23% of 247 companies
in the Education industry
Industry Median: 47.11 vs HKSE:01981: 36.60

Cathay Media And Education Group had a gross margin of 33.02% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Cathay Media And Education Group was -5.90% per year.

Cathay Media And Education Group Gross Margin % Historical Data

The historical data trend for Cathay Media And 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.

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Cathay Media And Education Group Gross Margin % Chart

Cathay Media And Education Group Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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49.90

44.73

47.78

48.29

36.60

Cathay Media And Education Group Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial							37.86	43.74	54.46	40.23	33.02

Competitive Comparison of Cathay Media And Education Group's Gross Margin %

For the Education & Training Services subindustry, Cathay Media And 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.

Cathay Media And Education Group's Gross Margin % Distribution in the Education Industry

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

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

Cathay Media And Education Group Gross Margin % Calculation

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

Cathay Media And 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 )
	=	303.9	/	830.222
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(830.222 - 526.372)	/	830.222
	=	36.60 %

Cathay Media And Education Group'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 )
	=	138.1	/	418.099
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(418.099 - 280.027)	/	418.099
	=	33.02 %

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.

Cathay Media And Education Group (HKSE:01981) 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

Cathay Media And Education Group had a gross margin of 33.02% for the quarter that ended in Dec. 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.

Cathay Media And Education Group Gross Margin % Related Terms

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Cathay Media And Education Group (HKSE:01981) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Cathay Media And Education Group Inc (HKSE:01981) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 93 Jianguo Road, 22nd Floor, Block 12, Wanda Plaza, Chaoyang District, Beijing, CHN

Website

http://www.cathaymedia.com

Cathay Media And Education Group Inc is a media group, engaged in TV/film production business and higher education business focused on media and arts. The company produces films, TV shows, Web films, and TV series. Its segments include TV/Film production and investment, and Education and training. The majority of the revenue is derived from the higher education segment.

Executives

Pu Shulin	2307 Founder of a discretionary trust who can infl
Luo Jacqueline	2202 Interest of your spouse
Cathay Media Holding Inc.	2101 Beneficial owner
Media One International (ptc) Limited	2301 Trustee
Winning Global Ventures Limited	2201 Interest of corporation controlled by you
Areo Holdings Limited	2201 Interest of corporation controlled by you
Highland Pines Limited	2101 Beneficial owner
Lam Lai Ming	2201 Interest of corporation controlled by you
Li Gabriel	2201 Interest of corporation controlled by you

Cathay Media And Education Group (HKSE:01981) Headlines

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