Binhai Investment Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.9%.
The historical rank and industry rank for Binhai Investment Co's Gross Margin % or its related term are showing as below:
HKSE:02886'
s Gross Margin % Range Over the Past 10 Years
Min: 10.09 Med: 17.98 Max: 25.19
Current: 10.09
During the past 13 years, the highestGross Margin % of Binhai Investment Co was 25.19%. The lowest was 10.09%. And the median was 17.98%.
HKSE:02886's Gross Margin % is ranked worse than 88.39% of 491
companies
in the Utilities - Regulated industry
Industry Median: 30.34
vs HKSE:02886: 10.09
Binhai Investment Co had a gross margin of 9.14% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Binhai Investment Co was -7.90% per year.
Binhai Investment Co Gross Margin % Historical Data
The historical data trend for Binhai Investment 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 Binhai Investment Co's Gross Margin %
For the Utilities - Regulated Gas subindustry, Binhai Investment 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.
Binhai Investment Co's Gross Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Binhai Investment Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Binhai Investment 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.
Binhai Investment Co (HKSE:02886) 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
Binhai Investment Co had a gross margin of 9.14% for the quarter that ended in Jun. 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.
Binhai Investment Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Binhai Investment Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Binhai Investment Co Ltd is an investment holding company engaged in the sales of piped natural gas, construction, and gas pipeline installation service, gas passing through service, and sales of bottled natural gas. It derives a majority of its revenue from construction, and gas pipeline installation services in which the group constructs gas pipelines for its clients and connects such pipelines to the group's main gas pipeline networks and charges construction and gas pipeline installation service fees from industrial and commercial customers, property developers and property management companies.
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