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LMPMF (Lee & Man Paper Manufacturing) Gross Margin % : 13.02% (As of Jun. 2024)


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What is Lee & Man Paper Manufacturing Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lee & Man Paper Manufacturing's Gross Profit for the six months ended in Jun. 2024 was $208 Mil. Lee & Man Paper Manufacturing's Revenue for the six months ended in Jun. 2024 was $1,601 Mil. Therefore, Lee & Man Paper Manufacturing's Gross Margin % for the quarter that ended in Jun. 2024 was 13.02%.

Warning Sign:

Lee & Man Paper Manufacturing Ltd gross margin has been in long-term decline. The average rate of decline per year is -17.1%.


The historical rank and industry rank for Lee & Man Paper Manufacturing's Gross Margin % or its related term are showing as below:

LMPMF' s Gross Margin % Range Over the Past 10 Years
Min: 9.23   Med: 19.54   Max: 29.08
Current: 12.49


During the past 13 years, the highest Gross Margin % of Lee & Man Paper Manufacturing was 29.08%. The lowest was 9.23%. And the median was 19.54%.

LMPMF's Gross Margin % is ranked worse than
74.19% of 279 companies
in the Forest Products industry
Industry Median: 19.11 vs LMPMF: 12.49

Lee & Man Paper Manufacturing had a gross margin of 13.02% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lee & Man Paper Manufacturing was -17.10% per year.


Lee & Man Paper Manufacturing Gross Margin % Historical Data

The historical data trend for Lee & Man Paper Manufacturing'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.

Lee & Man Paper Manufacturing Gross Margin % Chart

Lee & Man Paper Manufacturing 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 18.76 22.22 17.54 9.23 10.03

Lee & Man Paper Manufacturing Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 10.84 7.46 8.03 11.96 13.02

Competitive Comparison of Lee & Man Paper Manufacturing's Gross Margin %

For the Paper & Paper Products subindustry, Lee & Man Paper Manufacturing'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.


Lee & Man Paper Manufacturing's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Lee & Man Paper Manufacturing's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lee & Man Paper Manufacturing's Gross Margin % falls into.



Lee & Man Paper Manufacturing Gross Margin % Calculation

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

Lee & Man Paper Manufacturing'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 )
=320.4 / 3193.05
=(Revenue - Cost of Goods Sold) / Revenue
=(3193.05 - 2872.661) / 3193.05
=10.03 %

Lee & Man Paper Manufacturing's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=208.5 / 1601.196
=(Revenue - Cost of Goods Sold) / Revenue
=(1601.196 - 1392.708) / 1601.196
=13.02 %

* 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.


Lee & Man Paper Manufacturing  (OTCPK:LMPMF) 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

Lee & Man Paper Manufacturing had a gross margin of 13.02% for the quarter that ended in Jun. 2024 => 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.


Lee & Man Paper Manufacturing Gross Margin % Related Terms

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Lee & Man Paper Manufacturing Business Description

Traded in Other Exchanges
Address
169 Electric Road, 39/F, Lee & Man Commercial Center, North Point, Hong Kong, HKG
Lee & Man Paper Manufacturing Ltd is an investment holding company engaged in the manufacturing and trading of paper and pulp. Its segments are Packaging Paper, Pulp, and Tissue paper. The majority of the revenue is generated from the packaging paper segment that covers the production of kraft liner board, test liner board, coated duplex board, white top liner board, and strength corrugating medium. The People's Republic of China accounts for the majority of the revenue.

Lee & Man Paper Manufacturing Headlines

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