GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Infinity Development Holdings Company Ltd (HKSE:00640) » Definitions » Gross Margin %

Infinity Development Holdings Company (HKSE:00640) Gross Margin % : 32.94% (As of Sep. 2023)


View and export this data going back to 2010. Start your Free Trial

What is Infinity Development Holdings Company Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Infinity Development Holdings Company's Gross Profit for the six months ended in Sep. 2023 was HK$103.1 Mil. Infinity Development Holdings Company's Revenue for the six months ended in Sep. 2023 was HK$313.1 Mil. Therefore, Infinity Development Holdings Company's Gross Margin % for the quarter that ended in Sep. 2023 was 32.94%.

Warning Sign:

Infinity Development Holdings Company Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


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

HKSE:00640' s Gross Margin % Range Over the Past 10 Years
Min: 25.89   Med: 32.07   Max: 35.43
Current: 31.13


During the past 13 years, the highest Gross Margin % of Infinity Development Holdings Company was 35.43%. The lowest was 25.89%. And the median was 32.07%.

HKSE:00640's Gross Margin % is ranked better than
70.25% of 1509 companies
in the Chemicals industry
Industry Median: 22.32 vs HKSE:00640: 31.13

Infinity Development Holdings Company had a gross margin of 32.94% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Infinity Development Holdings Company was -1.60% per year.


Infinity Development Holdings Company Gross Margin % Historical Data

The historical data trend for Infinity Development Holdings Company'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.

Infinity Development Holdings Company Gross Margin % Chart

Infinity Development Holdings Company Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.00 35.05 30.57 25.89 31.13

Infinity Development Holdings Company Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 26.71 24.04 27.33 29.55 32.94

Competitive Comparison of Infinity Development Holdings Company's Gross Margin %

For the Specialty Chemicals subindustry, Infinity Development Holdings Company'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.


Infinity Development Holdings Company's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Infinity Development Holdings Company's Gross Margin % distribution charts can be found below:

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



Infinity Development Holdings Company Gross Margin % Calculation

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

Infinity Development Holdings Company's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=209.1 / 671.75
=(Revenue - Cost of Goods Sold) / Revenue
=(671.75 - 462.644) / 671.75
=31.13 %

Infinity Development Holdings Company's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=103.1 / 313.094
=(Revenue - Cost of Goods Sold) / Revenue
=(313.094 - 209.953) / 313.094
=32.94 %

* 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.


Infinity Development Holdings Company  (HKSE:00640) 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

Infinity Development Holdings Company had a gross margin of 32.94% for the quarter that ended in Sep. 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.


Infinity Development Holdings Company Gross Margin % Related Terms

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


Infinity Development Holdings Company (HKSE:00640) Business Description

Traded in Other Exchanges
N/A
Address
16 Andar A-D, Macau Finance Centre, Rua de Pequim No. 202A-246, Macau, MAC
Infinity Development Holdings Company Ltd is an investment holding company. The company focuses on manufacturing and selling adhesives, primers, hardeners, vulcanized shoes, and adhesive related products for the footwear industry. Its geographical segments include China, Singapore, India, Regions of Hong Kong, Macau and Taiwan, Vietnam and Cambodia, Indonesia, and Bangladesh, of which the vast majority of its revenue is generated from Vietnam and Cambodia.

Infinity Development Holdings Company (HKSE:00640) Headlines

No Headlines