CLP Holdings (HKSE:00002) Gross Margin % : 37.80% (As of Dec. 2023)

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What is CLP Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. CLP Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$16,582 Mil. CLP Holdings's Revenue for the six months ended in Dec. 2023 was HK$43,867 Mil. Therefore, CLP Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 37.80%.

Warning Sign:

CLP Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.9%.

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

HKSE:00002' s Gross Margin % Range Over the Past 10 Years
Min: 18.73 Med: 32.22 Max: 35.23
Current: 32.73

During the past 13 years, the highest Gross Margin % of CLP Holdings was 35.23%. The lowest was 18.73%. And the median was 32.22%.

HKSE:00002's Gross Margin % is ranked better than
56.86% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs HKSE:00002: 32.73

CLP Holdings had a gross margin of 37.80% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for CLP Holdings was -4.90% per year.

CLP Holdings Gross Margin % Historical Data

The historical data trend for CLP Holdings'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.

CLP Holdings Gross Margin % Chart

CLP Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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31.14

35.23

31.71

18.73

32.73

CLP Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															28.68	1.53	34.16	27.59	37.80

Competitive Comparison of CLP Holdings's Gross Margin %

For the Utilities - Regulated Electric subindustry, CLP Holdings'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.

CLP Holdings's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, CLP Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where CLP Holdings's Gross Margin % falls into.

CLP Holdings Gross Margin % Calculation

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

CLP Holdings'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 )
	=	28527	/	87169
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(87169 - 58642)	/	87169
	=	32.73 %

CLP Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	16582	/	43867
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(43867 - 27285)	/	43867
	=	37.80 %

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.

CLP Holdings (HKSE:00002) 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

CLP Holdings had a gross margin of 37.80% for the quarter that ended in Dec. 2023 => 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.

CLP Holdings Gross Margin % Related Terms

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CLP Holdings (HKSE:00002) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » CLP Holdings Ltd (HKSE:00002) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

CLPHY:USA CLPHF:USA CLP:Germany

Address

8 Laguna Verde Avenue, Hung Hom, Kowloon, Hong Kong, HKG

Website

https://www.clpgroup.com

CLP Holdings is the larger of the two electric utility companies in Hong Kong, serving 80% of the city population. It generates, transmits and distributes electricity to about 2.6 million customers in Kowloon and the New Territories through its wholly owned network. The business is regulated by the Hong Kong government with a permitted return on net fixed asset of 8.00%. Besides Hong Kong, the company has expanded its reach overseas, with generation and retail assets in Australia and generation assets in China, India, Taiwan, and Southeast Asia. Its Hong Kong activities made up more than 80% of recurring net profit in 2021.

CLP Holdings (HKSE:00002) Headlines

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