The historical rank and industry rank for Adicon Holdings's Gross Margin % or its related term are showing as below:
HKSE:09860'
s Gross Margin % Range Over the Past 10 Years
Min: 37.7 Med: 41.71 Max: 43.49
Current: 37.7
During the past 5 years, the highestGross Margin % of Adicon Holdings was 43.49%. The lowest was 37.70%. And the median was 41.71%.
HKSE:09860's Gross Margin % is ranked worse than 63.24% of 204
companies
in the Medical Diagnostics & Research industry
Industry Median: 47.58
vs HKSE:09860: 37.70
Adicon Holdings had a gross margin of 37.21% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Adicon Holdings was 0.00% per year.
Adicon Holdings Gross Margin % Historical Data
The historical data trend for Adicon 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 Adicon Holdings's Gross Margin %
For the Diagnostics & Research subindustry, Adicon 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.
Adicon Holdings's Gross Margin % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Adicon Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Adicon 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.
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
Adicon Holdings had a gross margin of 37.21% for the quarter that ended in Dec. 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.
Adicon Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Adicon Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 2004 and listing on the Hong Kong Exchange in 2023, Adicon is one of the largest independent clinical laboratories in China. In October 2018, private equity Carlyle Group completed its investment in Adicon and has since been the largest single shareholder. Following Carlyle's investment, Adicon quickly stepped up its footprint. It has a testing portfolio of over 4,000 medical diagnostic tests with 34 self-operated laboratories in 2024, compared with 1,800 items and 21 labs in 2018. Currently, esoteric tests account for nearly 60% of its testing portfolio. Esoteric tests require more specialized technologies and/or equipment.
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