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KML Technology Group (HKSE:08065) Gross Margin % : 14.09% (As of Sep. 2023)


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What is KML Technology Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. KML Technology Group's Gross Profit for the three months ended in Sep. 2023 was HK$6.1 Mil. KML Technology Group's Revenue for the three months ended in Sep. 2023 was HK$43.6 Mil. Therefore, KML Technology Group's Gross Margin % for the quarter that ended in Sep. 2023 was 14.09%.

Warning Sign:

KML Technology Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -20.5%.


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

HKSE:08065' s Gross Margin % Range Over the Past 10 Years
Min: 5.32   Med: 30.12   Max: 39.04
Current: 5.32


During the past 8 years, the highest Gross Margin % of KML Technology Group was 39.04%. The lowest was 5.32%. And the median was 30.12%.

HKSE:08065's Gross Margin % is ranked worse than
88.71% of 1612 companies
in the Construction industry
Industry Median: 19.255 vs HKSE:08065: 5.32

KML Technology Group had a gross margin of 14.09% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for KML Technology Group was -20.50% per year.


KML Technology Group Gross Margin % Historical Data

The historical data trend for KML Technology 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.

* Premium members only.

KML Technology Group Gross Margin % Chart

KML Technology Group Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial 31.38 31.81 28.55 27.39 6.44

KML Technology Group Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 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 24.34 12.59 -29.17 22.03 14.09

Competitive Comparison of KML Technology Group's Gross Margin %

For the Infrastructure Operations subindustry, KML Technology 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.


KML Technology Group's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, KML Technology Group's Gross Margin % distribution charts can be found below:

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



KML Technology Group Gross Margin % Calculation

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

KML Technology Group's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=9.9 / 153.409
=(Revenue - Cost of Goods Sold) / Revenue
=(153.409 - 143.523) / 153.409
=6.44 %

KML Technology Group'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 )
=6.1 / 43.604
=(Revenue - Cost of Goods Sold) / Revenue
=(43.604 - 37.462) / 43.604
=14.09 %

* 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.


KML Technology Group  (HKSE:08065) 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

KML Technology Group had a gross margin of 14.09% for the quarter that ended in Sep. 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.


KML Technology Group Gross Margin % Related Terms

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KML Technology Group (HKSE:08065) Business Description

Traded in Other Exchanges
N/A
Address
Siu Lek Yuen Road, B12, Ground Floor, Shatin Industrial Centre, Shatin, New Territories, Hong Kong, HKG
KML Technology Group Ltd is an investment holding company. The company is engaged in the provision of electrical and mechanical engineering solutions and services. Its operating segment includes Transportation Mission Critical System Solutions, Mobile Ticketing and Digital Payment Solutions and Services, M&E Technology Solutions and Engineering Services and Digital Fabrication and Maintenance Services. The company generates maximum revenue from Digital Fabrication and Maintenance Service segment. Geographically, it derives a majority of its revenue from Hong Kong and also has a presence in Taiwan, Singapore, Canada, and Others Countries. It also provides security and access control systems, railway station engineering services and architectural works and others.

KML Technology Group (HKSE:08065) Headlines

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