ICT Zone Asia Bhd (XKLS:03038) Gross Margin % : 23.89% (As of Jul. 2024)

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What is ICT Zone Asia Bhd Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ICT Zone Asia Bhd's Gross Profit for the six months ended in Jul. 2024 was RM13.8 Mil. ICT Zone Asia Bhd's Revenue for the six months ended in Jul. 2024 was RM57.7 Mil. Therefore, ICT Zone Asia Bhd's Gross Margin % for the quarter that ended in Jul. 2024 was 23.89%.

Warning Sign:

ICT Zone Asia Bhd gross margin has been in long-term decline. The average rate of decline per year is -1.4%.

The historical rank and industry rank for ICT Zone Asia Bhd's Gross Margin % or its related term are showing as below:

XKLS:03038' s Gross Margin % Range Over the Past 10 Years
Min: 18.27 Med: 21.95 Max: 24.68
Current: 23.86

During the past 6 years, the highest Gross Margin % of ICT Zone Asia Bhd was 24.68%. The lowest was 18.27%. And the median was 21.95%.

XKLS:03038's Gross Margin % is ranked worse than
74.82% of 2649 companies
in the Software industry
Industry Median: 41.43 vs XKLS:03038: 23.86

ICT Zone Asia Bhd had a gross margin of 23.89% for the quarter that ended in Jul. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for ICT Zone Asia Bhd was -1.40% per year.

ICT Zone Asia Bhd Gross Margin % Historical Data

The historical data trend for ICT Zone Asia Bhd'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.

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ICT Zone Asia Bhd Gross Margin % Chart

ICT Zone Asia Bhd Annual Data

Trend

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Gross Margin %

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22.84

24.68

23.32

21.05

18.27

ICT Zone Asia Bhd Semi-Annual Data
	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24	Jul24
Gross Margin %	Get a 7-Day Free Trial							20.65	21.36	12.90	23.83	23.89

Competitive Comparison of ICT Zone Asia Bhd's Gross Margin %

For the Information Technology Services subindustry, ICT Zone Asia Bhd'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.

ICT Zone Asia Bhd's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, ICT Zone Asia Bhd's Gross Margin % distribution charts can be found below:

* The bar in red indicates where ICT Zone Asia Bhd's Gross Margin % falls into.

ICT Zone Asia Bhd Gross Margin % Calculation

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

ICT Zone Asia Bhd's Gross Margin for the fiscal year that ended in Jan. 2024 is calculated as

Gross Margin % (A: Jan. 2024 )	=	Gross Profit (A: Jan. 2024 )	/	Revenue (A: Jan. 2024 )
	=	20.9	/	114.428
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(114.428 - 93.527)	/	114.428
	=	18.27 %

ICT Zone Asia Bhd's Gross Margin for the quarter that ended in Jul. 2024 is calculated as

Gross Margin % (Q: Jul. 2024 )	=	Gross Profit (Q: Jul. 2024 )	/	Revenue (Q: Jul. 2024 )
	=	13.8	/	57.653
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(57.653 - 43.881)	/	57.653
	=	23.89 %

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.

ICT Zone Asia Bhd (XKLS:03038) 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

ICT Zone Asia Bhd had a gross margin of 23.89% for the quarter that ended in Jul. 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.

ICT Zone Asia Bhd Gross Margin % Related Terms

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ICT Zone Asia Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » ICT Zone Asia Bhd (XKLS:03038) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

03038P.PFD:Malaysia

Address

Jalan Ampang Putra, Ground Floor, Block H, Excella Business Park, Wilayah Persekutuan, Ampang, Kuala Lumpur, SGR, MYS, 55100

Website

https://www.ictzone.asia

ICT Zone Asia Bhd is an investment holding company. It operates in the following segments: Leasing, which involves the operating lease of ICT hardware and software without services as well as disposal of assets returned at the end of the operating lease; Trading includes outright sales of ICT hardware and software; Service segment includes the provision of ICT services that comprise of corrective and preventative maintenance; Rental segment includes rental of ICT hardware and software inclusive of corrective and preventative maintenance; and Cloud solution and service.

ICT Zone Asia Bhd Headlines

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