HKSE:06958's Gross Margin % is ranked worse than 79.23% of 1642
companies
in the Real Estate industry
Industry Median: 36.125
vs HKSE:06958: 18.32
Zhenro Services Group had a gross margin of 20.28% for the quarter that ended in Jun. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Zhenro Services Group was -6.80% per year.
Zhenro Services Group Gross Margin % Historical Data
The historical data trend for Zhenro Services Group'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 Zhenro Services Group's Gross Margin %
For the Real Estate Services subindustry, Zhenro Services Group'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.
Zhenro Services Group's Gross Margin % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Zhenro Services Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhenro Services Group'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.
Zhenro Services Group (HKSE:06958) 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
Zhenro Services Group had a gross margin of 20.28% for the quarter that ended in Jun. 2024 => 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.
Zhenro Services Group Gross Margin % Related Terms
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Zhenro Services Group Ltd is a property management service provider in China, offering diversified property management services for residential and non-residential properties. The group is principally engaged in the provision of property management services, value-added services to non-property owners, community value-added services, and commercial operational management services. The majority of revenue is derived from the property management services. Geographically it operates in Mainland China.
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