ESR Group (HKSE:01821) Gross Margin % : 88.67% (As of Dec. 2023)

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What is ESR Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ESR Group's Gross Profit for the six months ended in Dec. 2023 was HK$2,880 Mil. ESR Group's Revenue for the six months ended in Dec. 2023 was HK$3,248 Mil. Therefore, ESR Group's Gross Margin % for the quarter that ended in Dec. 2023 was 88.67%.

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

HKSE:01821' s Gross Margin % Range Over the Past 10 Years
Min: 73.37 Med: 89.9 Max: 97.73
Current: 93.14

During the past 8 years, the highest Gross Margin % of ESR Group was 97.73%. The lowest was 73.37%. And the median was 89.90%.

HKSE:01821's Gross Margin % is ranked better than
95.41% of 1655 companies
in the Real Estate industry
Industry Median: 36.78 vs HKSE:01821: 93.14

ESR Group had a gross margin of 88.67% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for ESR Group was 4.10% per year.

ESR Group Gross Margin % Historical Data

The historical data trend for ESR Group'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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ESR Group Gross Margin % Chart

ESR Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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77.29

73.37

86.66

96.44

93.14

ESR Group Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial								88.45	97.85	94.88	97.21	88.67

Competitive Comparison of ESR Group's Gross Margin %

For the Real Estate Services subindustry, ESR Group'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.

ESR Group's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, ESR Group's Gross Margin % distribution charts can be found below:

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

ESR Group Gross Margin % Calculation

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

ESR Group'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 )
	=	6337.9	/	6804.882
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6804.882 - 466.995)	/	6804.882
	=	93.14 %

ESR Group'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 )
	=	2880.3	/	3248.244
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3248.244 - 367.935)	/	3248.244
	=	88.67 %

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.

ESR Group (HKSE:01821) 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

ESR Group had a gross margin of 88.67% for the quarter that ended in Dec. 2023 => Durable 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.

ESR Group Gross Margin % Related Terms

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ESR Group (HKSE:01821) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » ESR Group Ltd (HKSE:01821) » Definitions » Gross Margin %

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Traded in Other Exchanges

ESRCF:USA

Address

Two Exchange Square, Suites 2905-06, 8 Connaught Place, Central, Hong Kong, HKG

Website

https://www.esr.com

ESR Group, or ESR, is one of the largest real asset managers in the Asia-Pacific, with USD 145 billion in total assets under management as of Dec. 31, 2022. Most of its earnings are derived from fund management, where it manages underlying assets in investment vehicles such as a fund or REIT for fee income and a share of profits. It also develops and holds investment properties on its balance sheet for rental income and capital appreciation and will divest them into its managed funds and REITs over time to unlock and recycle the capital into other investment opportunities. In addition, to align its interest with its capital partners, ESR coinvests in the funds and REITs that it manages where it generates dividend income, pro rata earnings and value appreciation.

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