DaChan Food (Asia) Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for DaChan Food (Asia)'s Gross Margin % or its related term are showing as below:
HKSE:03999'
s Gross Margin % Range Over the Past 10 Years
Min: 5.72 Med: 10.23 Max: 12.22
Current: 10.98
During the past 13 years, the highestGross Margin % of DaChan Food (Asia) was 12.22%. The lowest was 5.72%. And the median was 10.23%.
HKSE:03999's Gross Margin % is ranked worse than 81.67% of 1806
companies
in the Consumer Packaged Goods industry
Industry Median: 25.33
vs HKSE:03999: 10.98
DaChan Food (Asia) had a gross margin of 8.95% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for DaChan Food (Asia) was -1.60% per year.
DaChan Food (Asia) Gross Margin % Historical Data
The historical data trend for DaChan Food (Asia)'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 DaChan Food (Asia)'s Gross Margin %
For the Packaged Foods subindustry, DaChan Food (Asia)'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.
DaChan Food (Asia)'s Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, DaChan Food (Asia)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where DaChan Food (Asia)'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
DaChan Food (Asia) had a gross margin of 8.95% 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.
DaChan Food (Asia) Gross Margin % Related Terms
Thank you for viewing the detailed overview of DaChan Food (Asia)'s Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
DaChan Food (Asia) (HKSE:03999) Business Description
DaChan Food (Asia) Ltd is an investment holding company. It operates through three segments namely, the Chicken Meat segment which carries on a business of broiler farming, hatching of broiler breeder eggs, contract farming, processing and marketing of chilled and frozen chicken meat marketed under the brand of DaChan and Sisters' Kitchen; The Livestock feeds segment manufactures and distributes complete feed, base mix and pre-mix for swine, layer, broiler, duck, and breeder poultry under the brands of Dr. Nupak, DaChan, and Green Knight; and The Processed food segment produces and distributes pickled, pre-fried, and instant food. The geographical regions of the group are The PRC, Japan and Rest of Asia Pacific.
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