Shenzhen SEICHI Technologies Co (SHSE:688627) Gross Margin % : 33.44% (As of Mar. 2024)

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What is Shenzhen SEICHI Technologies Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shenzhen SEICHI Technologies Co's Gross Profit for the three months ended in Mar. 2024 was ¥27.8 Mil. Shenzhen SEICHI Technologies Co's Revenue for the three months ended in Mar. 2024 was ¥83.0 Mil. Therefore, Shenzhen SEICHI Technologies Co's Gross Margin % for the quarter that ended in Mar. 2024 was 33.44%.

Warning Sign:

Shenzhen SEICHI Technologies Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.7%.

The historical rank and industry rank for Shenzhen SEICHI Technologies Co's Gross Margin % or its related term are showing as below:

SHSE:688627' s Gross Margin % Range Over the Past 10 Years
Min: 35.31 Med: 39.07 Max: 65.43
Current: 39.8

During the past 7 years, the highest Gross Margin % of Shenzhen SEICHI Technologies Co was 65.43%. The lowest was 35.31%. And the median was 39.07%.

SHSE:688627's Gross Margin % is ranked better than
79.54% of 2942 companies
in the Industrial Products industry
Industry Median: 26.42 vs SHSE:688627: 39.80

Shenzhen SEICHI Technologies Co had a gross margin of 33.44% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Shenzhen SEICHI Technologies Co was -4.70% per year.

Shenzhen SEICHI Technologies Co Gross Margin % Historical Data

The historical data trend for Shenzhen SEICHI Technologies 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.

Shenzhen SEICHI Technologies Co Gross Margin % Chart

Shenzhen SEICHI Technologies Co Annual Data

Trend

Dec13

Dec14

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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35.31

39.07

38.83

36.78

40.37

Shenzhen SEICHI Technologies Co Quarterly Data
	Dec13	Dec14	Dec19	Dec20	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial										36.68	37.66	43.30	41.66	33.44

Competitive Comparison of Shenzhen SEICHI Technologies Co's Gross Margin %

For the Specialty Industrial Machinery subindustry, Shenzhen SEICHI Technologies 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.

Shenzhen SEICHI Technologies Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shenzhen SEICHI Technologies Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shenzhen SEICHI Technologies Co's Gross Margin % falls into.

Shenzhen SEICHI Technologies Co Gross Margin % Calculation

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

Shenzhen SEICHI Technologies 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 )
	=	261.8	/	648.563
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(648.563 - 386.741)	/	648.563
	=	40.37 %

Shenzhen SEICHI Technologies Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	27.8	/	83.047
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(83.047 - 55.273)	/	83.047
	=	33.44 %

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.

Shenzhen SEICHI Technologies Co (SHSE:688627) 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

Shenzhen SEICHI Technologies Co had a gross margin of 33.44% for the quarter that ended in Mar. 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.

Shenzhen SEICHI Technologies Co Gross Margin % Related Terms

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Shenzhen SEICHI Technologies Co (SHSE:688627) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Shenzhen SEICHI Technologies Co Ltd (SHSE:688627) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Longhua Street, East of 1st Floor, Building D, 101 Industrial Park, No. 1 Fuanna Company, Qinghu Village, Longhua, Qinghu, Guangdong, Shenzhen, CHN, 518110

Website

http://www.seichitech.com

Shenzhen SEICHI Technologies Co Ltd is a provider of testing equipment and system solution. It is mainly engaged in research, development, production and sales of new display device testing equipment. Detection and calibration repair, and gradually extended to the field of semiconductor storage device testing equipment, related products are used in wafer testing, packaging testing and aging repair of semiconductor storage devices represented by DRAM.

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