Neway Group Holdings (HKSE:00055) Gross Margin % : 3.51% (As of Jun. 2023)

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What is Neway Group Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Neway Group Holdings's Gross Profit for the six months ended in Jun. 2023 was HK$6.5 Mil. Neway Group Holdings's Revenue for the six months ended in Jun. 2023 was HK$185.1 Mil. Therefore, Neway Group Holdings's Gross Margin % for the quarter that ended in Jun. 2023 was 3.51%.

Warning Sign:

Neway Group Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.8%.

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

HKSE:00055' s Gross Margin % Range Over the Past 10 Years
Min: 16.1 Med: 22.03 Max: 31.65
Current: 16.1

During the past 13 years, the highest Gross Margin % of Neway Group Holdings was 31.65%. The lowest was 16.10%. And the median was 22.03%.

HKSE:00055's Gross Margin % is ranked worse than
84.29% of 993 companies
in the Business Services industry
Industry Median: 34.65 vs HKSE:00055: 16.10

Neway Group Holdings had a gross margin of 3.51% for the quarter that ended in Jun. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Neway Group Holdings was -7.80% per year.

Neway Group Holdings Gross Margin % Historical Data

The historical data trend for Neway Group 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.

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Neway Group Holdings Gross Margin % Chart

Neway Group Holdings Annual Data

Trend

Mar14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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27.08

24.98

17.41

20.98

16.10

Neway Group Holdings Semi-Annual Data
	Mar14	Sep14	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															16.66	22.60	19.29	3.51	22.51

Competitive Comparison of Neway Group Holdings's Gross Margin %

For the Specialty Business Services subindustry, Neway Group 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.

Neway Group Holdings's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Neway Group Holdings's Gross Margin % distribution charts can be found below:

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

Neway Group Holdings Gross Margin % Calculation

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

Neway Group Holdings's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	94.3	/	449.403
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(449.403 - 355.117)	/	449.403
	=	20.98 %

Neway Group Holdings's Gross Margin for the quarter that ended in Jun. 2023 is calculated as

Gross Margin % (Q: Jun. 2023 )	=	Gross Profit (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	6.5	/	185.114
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(185.114 - 178.617)	/	185.114
	=	3.51 %

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.

Neway Group Holdings (HKSE:00055) 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

Neway Group Holdings had a gross margin of 3.51% for the quarter that ended in Jun. 2023 => 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.

Neway Group Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Neway Group Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Neway Group Holdings (HKSE:00055) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Neway Group Holdings Ltd (HKSE:00055) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

193 Prince Edward Road West, Units Nos 1103 and 1105-1111, Level 11, Tower 2, Grand Century Place, Mongkok, Kowloon, Hong Kong, HKG

Website

https://www.newaygroup.com.hk

Neway Group Holdings Ltd is engaged in the businesses of Lending; Manufacturing and sales; Music and entertainment; Property development; Property investment; Securities trading; and Trading of printing and other products. It derives key revenue from the Manufacturing and sales business which involves the business of manufacturing and sales of printing products, such as packaging boxes, labels, paper products and paper shopping bags, with a customer base; and the manufacturing and sales of surgical masks, with a Hong Kong customer base. The group has a business presence in Hong Kong, the PRC, Europe, the United States and other countries.

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