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Avic Heavy Machinery Co (SHSE:600765) Gross Margin % : 33.80% (As of Mar. 2025)


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What is Avic Heavy Machinery Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Avic Heavy Machinery Co's Gross Profit for the three months ended in Mar. 2025 was ¥780 Mil. Avic Heavy Machinery Co's Revenue for the three months ended in Mar. 2025 was ¥2,306 Mil. Therefore, Avic Heavy Machinery Co's Gross Margin % for the quarter that ended in Mar. 2025 was 33.80%.


The historical rank and industry rank for Avic Heavy Machinery Co's Gross Margin % or its related term are showing as below:

SHSE:600765' s Gross Margin % Range Over the Past 10 Years
Min: 22.52   Med: 26.08   Max: 31.2
Current: 24.29


During the past 13 years, the highest Gross Margin % of Avic Heavy Machinery Co was 31.20%. The lowest was 22.52%. And the median was 26.08%.

SHSE:600765's Gross Margin % is ranked worse than
56.31% of 2950 companies
in the Industrial Products industry
Industry Median: 26.645 vs SHSE:600765: 24.29

Avic Heavy Machinery Co had a gross margin of 33.80% for the quarter that ended in Mar. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Avic Heavy Machinery Co was 0.00% per year.


Avic Heavy Machinery Co Gross Margin % Historical Data

The historical data trend for Avic Heavy Machinery 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.

Avic Heavy Machinery Co Gross Margin % Chart

Avic Heavy Machinery Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.64 28.33 29.24 31.20 23.69

Avic Heavy Machinery Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 29.66 31.78 33.72 2.97 33.80

Competitive Comparison of Avic Heavy Machinery Co's Gross Margin %

For the Specialty Industrial Machinery subindustry, Avic Heavy Machinery 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.


Avic Heavy Machinery Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Avic Heavy Machinery Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Avic Heavy Machinery Co's Gross Margin % falls into.


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Avic Heavy Machinery Co Gross Margin % Calculation

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

Avic Heavy Machinery Co's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=2453.2 / 10355.176
=(Revenue - Cost of Goods Sold) / Revenue
=(10355.176 - 7901.952) / 10355.176
=23.69 %

Avic Heavy Machinery Co's Gross Margin for the quarter that ended in Mar. 2025 is calculated as


Gross Margin % (Q: Mar. 2025 )=Gross Profit (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=779.6 / 2306.302
=(Revenue - Cost of Goods Sold) / Revenue
=(2306.302 - 1526.704) / 2306.302
=33.80 %

* 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.


Avic Heavy Machinery Co  (SHSE:600765) 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

Avic Heavy Machinery Co had a gross margin of 33.80% for the quarter that ended in Mar. 2025 => 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.


Avic Heavy Machinery Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Avic Heavy Machinery Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Avic Heavy Machinery Co Business Description

Traded in Other Exchanges
N/A
Address
No. 501, Beitun Road, Xintian Village, Wudang District, Guizhou Province, Guiyang, CHN, 550018
Avic Heavy Machinery Co Ltd is a China-based company engaged in the development, production, and sale of both military and civilian-used high-end equipment. It manufactures hydraulic parts, hydraulic systems, forging products, heat exchangers and gas turbines in China. The company operates in the business areas of Forging business, Hydraulic business, and New energy business. In the Forging business, the company mainly produces die forgings, free forgings, isothermal forgings and rings of different materials. In Hydraulic business, the main products are various types of heat exchangers, high-speed rotating machinery (turbine, pumps, fans), oil tanks, cooling devices, high-temperature insulation components.
Executives
Li Yang senior management
Hu Ling Hong Directors, senior managers
Ji Sheng Li senior management
Zhang Zheng Yuan senior management
Mao Yuan Supervisors
Ran Xing Director
Wang Zhi Hong senior management
Qiao Kun senior management
Liu Zhong Wen senior management
Sun Ji Bing senior management
Li Xue Qin Director
Jiang Chao Director
Ji Su Chun senior management
Huang Yun Director
Hu Hai Yin senior management

Avic Heavy Machinery Co Headlines

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