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Telecom Service One Holdings (HKSE:03997) Gross Margin % : 28.11% (As of Sep. 2023)


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What is Telecom Service One Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Telecom Service One Holdings's Gross Profit for the six months ended in Sep. 2023 was HK$7.59 Mil. Telecom Service One Holdings's Revenue for the six months ended in Sep. 2023 was HK$27.00 Mil. Therefore, Telecom Service One Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 28.11%.

Warning Sign:

Telecom Service One Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -12.1%.


The historical rank and industry rank for Telecom Service One Holdings's Gross Margin % or its related term are showing as below:

HKSE:03997' s Gross Margin % Range Over the Past 10 Years
Min: 22.16   Med: 44.53   Max: 50.65
Current: 24.95


During the past 12 years, the highest Gross Margin % of Telecom Service One Holdings was 50.65%. The lowest was 22.16%. And the median was 44.53%.

HKSE:03997's Gross Margin % is ranked worse than
78.43% of 102 companies
in the Personal Services industry
Industry Median: 45.165 vs HKSE:03997: 24.95

Telecom Service One Holdings had a gross margin of 28.11% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Telecom Service One Holdings was -12.10% per year.


Telecom Service One Holdings Gross Margin % Historical Data

The historical data trend for Telecom Service One 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.

* Premium members only.

Telecom Service One Holdings Gross Margin % Chart

Telecom Service One Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 44.97 37.72 39.96 38.65 22.16

Telecom Service One Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.43 33.70 22.76 21.51 28.11

Competitive Comparison of Telecom Service One Holdings's Gross Margin %

For the Personal Services subindustry, Telecom Service One 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.


Telecom Service One Holdings's Gross Margin % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Telecom Service One Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Telecom Service One Holdings's Gross Margin % falls into.



Telecom Service One Holdings Gross Margin % Calculation

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

Telecom Service One Holdings's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=11.4 / 51.381
=(Revenue - Cost of Goods Sold) / Revenue
=(51.381 - 39.996) / 51.381
=22.16 %

Telecom Service One Holdings's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=7.6 / 26.998
=(Revenue - Cost of Goods Sold) / Revenue
=(26.998 - 19.41) / 26.998
=28.11 %

* 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.


Telecom Service One Holdings  (HKSE:03997) 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

Telecom Service One Holdings had a gross margin of 28.11% for the quarter that ended in Sep. 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.


Telecom Service One Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Telecom Service One Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Telecom Service One Holdings (HKSE:03997) Business Description

Traded in Other Exchanges
N/A
Address
59 Tai Yip Street, Unit C, 3/F, Sunshine Kowloon Bay Cargo Centre, Kowloon Bay, Kowloon, Hong Kong, HKG
Telecom Service One Holdings Ltd is an investment holding company. The company is engaged in the provision of repair and refurbishment services for mobile phones and other personal electronic products as well as the sales of related accessories and provision of supportive services. Geographically, it derives all of its revenue from Hong Kong and also has a presence in PRC and Macau. Repairing service generates maximum revenue for the company.
Executives
Cheung King Shan 2101 Beneficial owner
Tang Fung Yin Anita 2202 Interest of your spouse
Cheung King Fung Sunny 2101 Beneficial owner
Yeung Ho Ki 2202 Interest of your spouse
Cheung King Shek 2101 Beneficial owner
Cheung King Chuen Bobby 2101 Beneficial owner

Telecom Service One Holdings (HKSE:03997) Headlines

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