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Genes Tech Group Holdings Co (HKSE:08257) Gross Margin % : 27.91% (As of Dec. 2023)


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What is Genes Tech Group Holdings Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Genes Tech Group Holdings Co's Gross Profit for the three months ended in Dec. 2023 was HK$15.7 Mil. Genes Tech Group Holdings Co's Revenue for the three months ended in Dec. 2023 was HK$56.2 Mil. Therefore, Genes Tech Group Holdings Co's Gross Margin % for the quarter that ended in Dec. 2023 was 27.91%.

Warning Sign:

Genes Tech Group Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -10.4%.


The historical rank and industry rank for Genes Tech Group Holdings Co's Gross Margin % or its related term are showing as below:

HKSE:08257' s Gross Margin % Range Over the Past 10 Years
Min: 6.72   Med: 22.84   Max: 26.7
Current: 24.56


During the past 10 years, the highest Gross Margin % of Genes Tech Group Holdings Co was 26.70%. The lowest was 6.72%. And the median was 22.84%.

HKSE:08257's Gross Margin % is ranked worse than
57.19% of 974 companies
in the Semiconductors industry
Industry Median: 28.49 vs HKSE:08257: 24.56

Genes Tech Group Holdings Co had a gross margin of 27.91% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Genes Tech Group Holdings Co was -10.40% per year.


Genes Tech Group Holdings Co Gross Margin % Historical Data

The historical data trend for Genes Tech Group Holdings 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.

* Premium members only.

Genes Tech Group Holdings Co Gross Margin % Chart

Genes Tech Group Holdings Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.61 26.70 22.85 6.72 24.46

Genes Tech Group Holdings Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -43.41 30.23 26.28 14.95 27.91

Competitive Comparison of Genes Tech Group Holdings Co's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, Genes Tech Group Holdings 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.


Genes Tech Group Holdings Co's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Genes Tech Group Holdings Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Genes Tech Group Holdings Co's Gross Margin % falls into.



Genes Tech Group Holdings Co Gross Margin % Calculation

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

Genes Tech Group Holdings Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=81.5 / 333.076
=(Revenue - Cost of Goods Sold) / Revenue
=(333.076 - 251.618) / 333.076
=24.46 %

Genes Tech Group Holdings Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=15.7 / 56.223
=(Revenue - Cost of Goods Sold) / Revenue
=(56.223 - 40.532) / 56.223
=27.91 %

* 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.


Genes Tech Group Holdings Co  (HKSE:08257) 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

Genes Tech Group Holdings Co had a gross margin of 27.91% for the quarter that ended in Dec. 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.


Genes Tech Group Holdings Co Gross Margin % Related Terms

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Genes Tech Group Holdings Co (HKSE:08257) Business Description

Traded in Other Exchanges
N/A
Address
No. 80, Baotai 3rd Road, Hsinchu County, Zhubei City, TWN, 30244
Genes Tech Group Holdings Co Ltd is engaged in the business of Provision of turnkey solution and Trading of used semiconductor manufacturing equipment and parts. It generates prime revenue from the Provision of turnkey solution segment. The company offers turnkey solution of used SME and Parts to customers who need to alter and upgrade the semiconductors of production systems from time to time. The SME and parts supplied by the group include furnaces, clean tracks, and other related items, which are used at the front-end of the semiconductor manufacturing process, wafer fabrication, such as deposition, photoresist coating, and development. It has a business presence in Taiwan, the PRC, Singapore, the United States, Japan and other countries.

Genes Tech Group Holdings Co (HKSE:08257) Headlines

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