Brainhole Technology Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.2%.
The historical rank and industry rank for Brainhole Technology's Gross Margin % or its related term are showing as below:
HKSE:02203'
s Gross Margin % Range Over the Past 10 Years
Min: 12.51 Med: 22.6 Max: 38.25
Current: 12.51
During the past 10 years, the highestGross Margin % of Brainhole Technology was 38.25%. The lowest was 12.51%. And the median was 22.60%.
HKSE:02203's Gross Margin % is ranked worse than 81.6% of 973
companies
in the Semiconductors industry
Industry Median: 28.7
vs HKSE:02203: 12.51
Brainhole Technology had a gross margin of 4.60% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Brainhole Technology was -9.20% per year.
Brainhole Technology Gross Margin % Historical Data
The historical data trend for Brainhole Technology'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 Brainhole Technology's Gross Margin %
For the Semiconductors subindustry, Brainhole Technology'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.
Brainhole Technology's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Brainhole Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Brainhole Technology'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
Brainhole Technology had a gross margin of 4.60% 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.
Brainhole Technology Gross Margin % Related Terms
Thank you for viewing the detailed overview of Brainhole Technology's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Brainhole Technology (HKSE:02203) Business Description
Brainhole Technology Ltd is an investment holding company. The reportable segments of the company are as follows, 1) Manufacturing segment engages in selling electronic goods and electrical parts and components manufactured by the Group. 2) Trading segment engages in trading of electronic goods and electrical parts and components sourced from third-party suppliers. 3) Broadband infrastructure and smart domain segment engages in the provision of broadband infrastructure construction services, promotion of broadband services, smart domain solution services and operating leases for broadband infrastructure. 4) Strategic investments segment engages in trading of digital assets and listed equity securities.
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