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IEIT Systems Co (SZSE:000977) Gross Margin % : 7.25% (As of Dec. 2024)


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What is IEIT Systems Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. IEIT Systems Co's Gross Profit for the three months ended in Dec. 2024 was ¥2,293 Mil. IEIT Systems Co's Revenue for the three months ended in Dec. 2024 was ¥31,642 Mil. Therefore, IEIT Systems Co's Gross Margin % for the quarter that ended in Dec. 2024 was 7.25%.

Warning Sign:

IEIT Systems Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -8.9%.


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

SZSE:000977' s Gross Margin % Range Over the Past 10 Years
Min: 6.85   Med: 11.3   Max: 15.48
Current: 6.85


During the past 13 years, the highest Gross Margin % of IEIT Systems Co was 15.48%. The lowest was 6.85%. And the median was 11.30%.

SZSE:000977's Gross Margin % is ranked worse than
89.98% of 2415 companies
in the Hardware industry
Industry Median: 24.68 vs SZSE:000977: 6.85

IEIT Systems Co had a gross margin of 7.25% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for IEIT Systems Co was -8.90% per year.


IEIT Systems Co Gross Margin % Historical Data

The historical data trend for IEIT Systems 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.

IEIT Systems Co Gross Margin % Chart

IEIT Systems 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 11.70 11.44 11.16 10.04 6.85

IEIT Systems Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 11.09 8.08 7.50 5.62 7.25

Competitive Comparison of IEIT Systems Co's Gross Margin %

For the Computer Hardware subindustry, IEIT Systems 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.


IEIT Systems Co's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, IEIT Systems Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where IEIT Systems Co's Gross Margin % falls into.


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IEIT Systems Co Gross Margin % Calculation

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

IEIT Systems 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 )
=7858.7 / 114767.367
=(Revenue - Cost of Goods Sold) / Revenue
=(114767.367 - 106908.64) / 114767.367
=6.85 %

IEIT Systems Co's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=2292.9 / 31641.618
=(Revenue - Cost of Goods Sold) / Revenue
=(31641.618 - 29348.719) / 31641.618
=7.25 %

* 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.


IEIT Systems Co  (SZSE:000977) 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

IEIT Systems Co had a gross margin of 7.25% for the quarter that ended in Dec. 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.


IEIT Systems Co Gross Margin % Related Terms

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IEIT Systems Co Business Description

Traded in Other Exchanges
N/A
Address
Qunxing Plaza, Huaqiang North Road, 31st Floor, Bock A, Futian District, Guangdong, Shenzhen, CHN, 518028
IEIT Systems Co Ltd is a provider of IT infrastructure products, solutions, and services. Its business focuses on three fields: servers, storage and networks. The company is committed to the innovation of digital technology along with the application and integration of digital worlds with the physical world. It is helping enterprises embark on a path of sustainable development by driving intelligent digital transformation.
Executives
Huang Jia Ming Executives
Wu Long Directors, executives
Gong Wei Feng Executives
Chen Bin Supervisors
Pang Song Tao Director
Kong Liang Executives
Guo Ji Jun Executives
Hu Lei Jun Executives
Zhang Ai Cheng Executives

IEIT Systems Co Headlines

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