Ching Lee Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -8.4%.
The historical rank and industry rank for Ching Lee Holdings's Gross Margin % or its related term are showing as below:
HKSE:03728'
s Gross Margin % Range Over the Past 10 Years
Min: 4.52 Med: 10.65 Max: 17.24
Current: 9.17
During the past 10 years, the highestGross Margin % of Ching Lee Holdings was 17.24%. The lowest was 4.52%. And the median was 10.65%.
HKSE:03728's Gross Margin % is ranked worse than 78.13% of 1614
companies
in the Construction industry
Industry Median: 19.255
vs HKSE:03728: 9.17
Ching Lee Holdings had a gross margin of 7.85% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ching Lee Holdings was -8.40% per year.
Ching Lee Holdings Gross Margin % Historical Data
The historical data trend for Ching Lee 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.
Competitive Comparison of Ching Lee Holdings's Gross Margin %
For the Engineering & Construction subindustry, Ching Lee 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.
Ching Lee Holdings's Gross Margin % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Ching Lee Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ching Lee Holdings'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.
Ching Lee Holdings (HKSE:03728) 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
Ching Lee Holdings had a gross margin of 7.85% for the quarter that ended in Sep. 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.
Ching Lee Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ching Lee Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ching Lee Holdings (HKSE:03728) Business Description
Ching Lee Holdings Ltd is an investment holding company. It is engaged in providing substructure building works services, superstructure building works services and repair, maintenance, alteration and addition works services. Substructure building works refer to building works in relation to the parts of the structure below or above the ground level respectively while repair, maintenance, alteration and addition work services segment accounts for existing structing. The superstructure works projects consist of demolition and hoarding, site formation and foundation works and RMAA works services segment. Majority of the company's revenue comes from the superstructure building work services. The group is based in Hong Kong.
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