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Prinx Chengshan Holdings (HKSE:01809) Operating Income : HK$1,478 Mil (TTM As of Dec. 2024)


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What is Prinx Chengshan Holdings Operating Income?

Prinx Chengshan Holdings's Operating Income for the six months ended in Dec. 2024 was HK$518 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was HK$1,478 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Prinx Chengshan Holdings's Operating Income for the six months ended in Dec. 2024 was HK$518 Mil. Prinx Chengshan Holdings's Revenue for the six months ended in Dec. 2024 was HK$5,990 Mil. Therefore, Prinx Chengshan Holdings's Operating Margin % for the quarter that ended in Dec. 2024 was 8.65%.

Good Sign:

Prinx Chengshan Holdings Ltd operating margin is expanding. Margin expansion is usually a good sign.

Prinx Chengshan Holdings's 5-Year average Growth Rate for Operating Margin % was 5.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Prinx Chengshan Holdings's annualized ROC % for the quarter that ended in Dec. 2024 was 12.08%. Prinx Chengshan Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 14.85%.


Prinx Chengshan Holdings Operating Income Historical Data

The historical data trend for Prinx Chengshan 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.

Prinx Chengshan Holdings Operating Income Chart

Prinx Chengshan 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 857.26 284.10 327.67 1,302.03 1,470.53

Prinx Chengshan Holdings Semi-Annual Data
Dec15 Dec16 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 151.73 431.34 870.70 960.22 518.22

Prinx Chengshan 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$1,478 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.


Prinx Chengshan Holdings  (HKSE:01809) Operating Income Explanation

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

Prinx Chengshan 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 )
=1036.43 * ( 1 - -1.68% )/( (8678.976 + 8770.998)/ 2 )
=1053.842024/8724.987
=12.08 %

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))
=11470.228 - 2325.381 - ( 465.871 - max(0, 4364.464 - 5575.959+465.871))
=8678.976

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))
=11770.771 - 2247.523 - ( 752.25 - max(0, 4173.706 - 5872.328+752.25))
=8770.998

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:

Prinx Chengshan 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 )
=1092.532/( ( (5667.174 + max(1620.747, 0)) + (5678.17 + max(1748.44, 0)) )/ 2 )
=1092.532/( ( 7287.921 + 7426.61 )/ 2 )
=1092.532/7357.2655
=14.85 %

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)
=(2113.216 + 1862.384 + 533.286) - (2325.381 + 0 + 562.758)
=1620.747

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1872.085 + 2074.358 + 645.911) - (2247.523 + 0 + 596.391)
=1748.44

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 %:

Prinx Chengshan 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 )
=518.215/5990.178
=8.65 %

* 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.


Prinx Chengshan Holdings Operating Income Related Terms

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Prinx Chengshan Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 98 Nanshan North Road, Shandong Province, Rongcheng, CHN
Prinx Chengshan Holdings Ltd is a tire manufacturer. It sells its products under the brand name Prinx, Chengshan, Austone, and Fortune. Geographically, it generates maximum revenue from Mainland China but also has a presence in the Americas, Asia, Africa, the Middle East, and Other countries.
Executives
Zhong Guo Zhong Xing Qi Che Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Li Xiuxiang 2201 Interest of corporation controlled by you
Che Baozhen 2101 Beneficial owner
Che Hongzhi
Bi Wenjing 2202 Interest of your spouse
Shang Hai Cheng Zhan Xin Xi Ke Ji Zhong Xin 2201 Interest of corporation controlled by you
Bei Jing Zhong Ming Xin Tou Zi You Xian Gong Si 2201 Interest of corporation controlled by you
Cheng Shan Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Li Xiuxiang 2201 Interest of corporation controlled by you
Che Hongzhi 2202 Interest of your spouse
Che Baozhen 2201 Interest of corporation controlled by you
Red Avenue Investment Group Limited 2201 Interest of corporation controlled by you
Sino Legend Holding Group Limited 2101 Beneficial owner
Zhang Ning 2201 Interest of corporation controlled by you
Hua Qi Zhong Guo Hua Gong You Xian Gong Si 2201 Interest of corporation controlled by you

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