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Prosperous Industrial (Holdings) (HKSE:01731) Operating Income : HK$229 Mil (TTM As of Dec. 2024)


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What is Prosperous Industrial (Holdings) Operating Income?

Prosperous Industrial (Holdings)'s Operating Income for the six months ended in Dec. 2024 was HK$92 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was HK$229 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Prosperous Industrial (Holdings)'s Operating Income for the six months ended in Dec. 2024 was HK$92 Mil. Prosperous Industrial (Holdings)'s Revenue for the six months ended in Dec. 2024 was HK$878 Mil. Therefore, Prosperous Industrial (Holdings)'s Operating Margin % for the quarter that ended in Dec. 2024 was 10.53%.

Good Sign:

Prosperous Industrial (Holdings) Ltd operating margin is expanding. Margin expansion is usually a good sign.

Prosperous Industrial (Holdings)'s 5-Year average Growth Rate for Operating Margin % was 50.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Prosperous Industrial (Holdings)'s annualized ROC % for the quarter that ended in Dec. 2024 was 20.17%. Prosperous Industrial (Holdings)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 35.58%.


Prosperous Industrial (Holdings) Operating Income Historical Data

The historical data trend for Prosperous Industrial (Holdings)'s Operating Income 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.

Prosperous Industrial (Holdings) Operating Income Chart

Prosperous Industrial (Holdings) Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.16 25.75 96.99 119.58 228.27

Prosperous Industrial (Holdings) Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Operating Income 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 27.74 69.40 50.39 136.53 92.38

Prosperous Industrial (Holdings) Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$229 Mil.

* 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.


Prosperous Industrial (Holdings)  (HKSE:01731) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Prosperous Industrial (Holdings)'s annualized ROC % for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=184.758 * ( 1 - 17.67% )/( (749.502 + 758.731)/ 2 )
=152.1112614/754.1165
=20.17 %

where

Invested Capital(Q: Jun. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1589.28 - 299.349 - ( 540.429 - max(0, 311.697 - 1264.962+540.429))
=749.502

Invested Capital(Q: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1714.47 - 356.239 - ( 599.5 - max(0, 364.922 - 1400.362+599.5))
=758.731

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Prosperous Industrial (Holdings)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=209.664/( ( (214.783 + max(385.876, 0)) + (176.021 + max(401.861, 0)) )/ 2 )
=209.664/( ( 600.659 + 577.882 )/ 2 )
=209.664/589.2705
=35.58 %

where Working Capital is:

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(474.707 + 210.519 + -0.00099999999997635) - (299.349 + 0 + 0)
=385.876

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(433.973 + 323.373 + 0.75400000000013) - (356.239 + 0 + 5.6843418860808E-14)
=401.861

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Prosperous Industrial (Holdings)'s Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 )/Revenue (Q: Dec. 2024 )
=92.379/877.562
=10.53 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Prosperous Industrial (Holdings) Operating Income Related Terms

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Prosperous Industrial (Holdings) Business Description

Traded in Other Exchanges
N/A
Address
71-75 Container Port Road, Unit 1-2, 1st Floor, Join-In Hang Sing Centre, Kwai Chung, New Territories, Hong Kong, HKG
Prosperous Industrial (Holdings) Ltd is an investment holding company principally engaged in the manufacturing and sale of sports bags, handbags and luggage bags. The company's products are categorized as outdoor and sporting bags including day packs and overnight backpacks, which are designed with larger volumes; functional bags such as camera backpacks with multiple pockets and waterproof hydration backpacks; fashion and casual bags, as well as other bags and packs. Geographically the company generates revenue from the United States of America, Belgium, Japan, Chinese Mainland, Netherlands, Italy, Hong Kong, and Others. The company generates the majority of its revenue from the United States of America.
Executives
Yeung Ming Sum Richard
Yeung Wor Foon Stella
Prosperous Holdings (overseas) Limited
Great Pacific Investment Ltd. 2101 Beneficial owner
Pou Chen Corporation 2201 Interest of corporation controlled by you
Pou Hing Industrial Co. Ltd 2201 Interest of corporation controlled by you
Wealthplus Holdings Limited 2201 Interest of corporation controlled by you
Yue Yuen Industrial (holdings) Limited 2201 Interest of corporation controlled by you

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