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Hangzhou Hota M&E Holdings Co (SZSE:001225) Gross Margin % : 34.19% (As of Mar. 2024)


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What is Hangzhou Hota M&E Holdings Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hangzhou Hota M&E Holdings Co's Gross Profit for the three months ended in Mar. 2024 was ¥28.5 Mil. Hangzhou Hota M&E Holdings Co's Revenue for the three months ended in Mar. 2024 was ¥83.3 Mil. Therefore, Hangzhou Hota M&E Holdings Co's Gross Margin % for the quarter that ended in Mar. 2024 was 34.19%.

Warning Sign:

Hangzhou Hota M&E Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2%.


The historical rank and industry rank for Hangzhou Hota M&E Holdings Co's Gross Margin % or its related term are showing as below:

SZSE:001225' s Gross Margin % Range Over the Past 10 Years
Min: 38.18   Med: 43.29   Max: 45.97
Current: 38.18


During the past 6 years, the highest Gross Margin % of Hangzhou Hota M&E Holdings Co was 45.97%. The lowest was 38.18%. And the median was 43.29%.

SZSE:001225's Gross Margin % is ranked better than
76.68% of 2942 companies
in the Industrial Products industry
Industry Median: 26.47 vs SZSE:001225: 38.18

Hangzhou Hota M&E Holdings Co had a gross margin of 34.19% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Hangzhou Hota M&E Holdings Co was -2.00% per year.


Hangzhou Hota M&E Holdings Co Gross Margin % Historical Data

The historical data trend for Hangzhou Hota M&E Holdings 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.

Hangzhou Hota M&E Holdings Co Gross Margin % Chart

Hangzhou Hota M&E Holdings Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 44.92 42.96 45.97 41.38 39.33

Hangzhou Hota M&E Holdings Co Quarterly Data
Dec18 Dec19 Dec20 Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 39.15 38.08 44.69 36.92 34.19

Competitive Comparison of Hangzhou Hota M&E Holdings Co's Gross Margin %

For the Specialty Industrial Machinery subindustry, Hangzhou Hota M&E Holdings 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.


Hangzhou Hota M&E Holdings Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hangzhou Hota M&E Holdings Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hangzhou Hota M&E Holdings Co's Gross Margin % falls into.



Hangzhou Hota M&E Holdings Co Gross Margin % Calculation

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

Hangzhou Hota M&E Holdings 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 )
=151.7 / 385.622
=(Revenue - Cost of Goods Sold) / Revenue
=(385.622 - 233.956) / 385.622
=39.33 %

Hangzhou Hota M&E Holdings 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 )
=28.5 / 83.297
=(Revenue - Cost of Goods Sold) / Revenue
=(83.297 - 54.814) / 83.297
=34.19 %

* 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.


Hangzhou Hota M&E Holdings Co  (SZSE:001225) 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

Hangzhou Hota M&E Holdings Co had a gross margin of 34.19% 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.


Hangzhou Hota M&E Holdings Co Gross Margin % Related Terms

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Hangzhou Hota M&E Holdings Co (SZSE:001225) Business Description

Traded in Other Exchanges
N/A
Address
No. 1201, Tonghui North Road, Ningwei Street, Xiaoshan District, Zhejiang Province, Hangzhou, CHN, 311215
Hangzhou Hota M&E Holdings Co Ltd is engaged in the research and development, design, manufacture and sales of material handling equipment. The company's main products include plate chain bucket elevators, belt bucket elevators and other series of conveying equipment and accessories, which are widely used in cement building materials, ports, steel, chemical and other industries, providing customers with environmentally friendly and efficient bulk materials Handling solutions.

Hangzhou Hota M&E Holdings Co (SZSE:001225) Headlines

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