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Transtech Optelecom Science Holdings (HKSE:09963) Gross Margin % : 3.30% (As of Dec. 2024)


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What is Transtech Optelecom Science Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Transtech Optelecom Science Holdings's Gross Profit for the six months ended in Dec. 2024 was HK$2.5 Mil. Transtech Optelecom Science Holdings's Revenue for the six months ended in Dec. 2024 was HK$75.2 Mil. Therefore, Transtech Optelecom Science Holdings's Gross Margin % for the quarter that ended in Dec. 2024 was 3.30%.


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

HKSE:09963' s Gross Margin % Range Over the Past 10 Years
Min: -0.19   Med: 14.53   Max: 25.68
Current: -0.19


During the past 11 years, the highest Gross Margin % of Transtech Optelecom Science Holdings was 25.68%. The lowest was -0.19%. And the median was 14.53%.

HKSE:09963's Gross Margin % is ranked worse than
97.1% of 2417 companies
in the Hardware industry
Industry Median: 24.53 vs HKSE:09963: -0.19

Transtech Optelecom Science Holdings had a gross margin of 3.30% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Transtech Optelecom Science Holdings was 0.00% per year.


Transtech Optelecom Science Holdings Gross Margin % Historical Data

The historical data trend for Transtech Optelecom Science 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.

Transtech Optelecom Science Holdings Gross Margin % Chart

Transtech Optelecom Science Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.22 12.50 12.83 10.03 -0.19

Transtech Optelecom Science Holdings Semi-Annual Data
Dec14 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 13.45 14.82 3.09 -3.79 3.30

Competitive Comparison of Transtech Optelecom Science Holdings's Gross Margin %

For the Communication Equipment subindustry, Transtech Optelecom Science 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.


Transtech Optelecom Science Holdings's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Transtech Optelecom Science Holdings's Gross Margin % distribution charts can be found below:

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


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Transtech Optelecom Science Holdings Gross Margin % Calculation

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

Transtech Optelecom Science Holdings's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=-0.3 / 148.017
=(Revenue - Cost of Goods Sold) / Revenue
=(148.017 - 148.292) / 148.017
=-0.19 %

Transtech Optelecom Science Holdings's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=2.5 / 75.165
=(Revenue - Cost of Goods Sold) / Revenue
=(75.165 - 72.682) / 75.165
=3.30 %

* 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.


Transtech Optelecom Science Holdings  (HKSE:09963) 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

Transtech Optelecom Science Holdings had a gross margin of 3.30% for the quarter that ended in Dec. 2024 => 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.


Transtech Optelecom Science Holdings Gross Margin % Related Terms

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Transtech Optelecom Science Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 3 Dai Kwai Street, Tai Po Industrial Estate, Tai Po, New Territories, Hong Kong, HKG
Transtech Optelecom Science Holdings Ltd is engaged in the manufacturing and sale of optical fibre in Hong Kong and optical fibre cable, flame-retardant optical fibre cable and non-metallic optical fibre cable and related products in Thailand. The company has two segments, namely Optical fibre cables, optical cable cores and other related products, which is located in Thailand; and Optical fibres, which is located in Hong Kong. The maximum revenue is earned from Thailand.
Executives
Wang Jianyi
Fu Tong Guang Xian Xiang Gang You Xian Gong Si
Fu Tong Ji Tuan You Xian Gong Si
Hang Zhou Fu Tong Guang Tong Xin Tou Zi You Xian Gong Si
Hang Zhou Fu Tong Tou Zi You Xian Gong Si

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