HKSE:02025's Gross Margin % is ranked worse than 83.27% of 1291
companies
in the Vehicles & Parts industry
Industry Median: 19.82
vs HKSE:02025: 10.59
Ruifeng Power Group Co had a gross margin of 9.54% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ruifeng Power Group Co was -16.30% per year.
Ruifeng Power Group Co Gross Margin % Historical Data
The historical data trend for Ruifeng Power Group Co'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 Ruifeng Power Group Co's Gross Margin %
For the Auto Parts subindustry, Ruifeng Power Group Co'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.
Ruifeng Power Group Co's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Ruifeng Power Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ruifeng Power Group Co'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.
Ruifeng Power Group Co (HKSE:02025) 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
Ruifeng Power Group Co had a gross margin of 9.54% for the quarter that ended in Dec. 2024 => 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.
Ruifeng Power Group Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ruifeng Power Group Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ruifeng Power Group Co Ltd, along with its subsidiaries, is principally engaged in the design, manufacture, and sale of cylinder blocks and cylinder heads. The group operates in the business segments of Cylinder blocks; Cylinder heads and Ancillary cylinder block components. It derives a majority of the revenue from the Cylinder blocks segment which includes mainly the research, development, manufacture, and sale of cylinder blocks. It offers cylinder blocks for passenger vehicles, commercial vehicles, and industrial vehicles. The group's revenue is majorly generated from sales to customers in the PRC.
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