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Shenzhen SEICHI Technologies Co (SHSE:688627) Operating Income : ¥137.5 Mil (TTM As of Sep. 2024)


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What is Shenzhen SEICHI Technologies Co Operating Income?

Shenzhen SEICHI Technologies Co's Operating Income for the three months ended in Sep. 2024 was ¥13.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was ¥137.5 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shenzhen SEICHI Technologies Co's Operating Income for the three months ended in Sep. 2024 was ¥13.9 Mil. Shenzhen SEICHI Technologies Co's Revenue for the three months ended in Sep. 2024 was ¥204.6 Mil. Therefore, Shenzhen SEICHI Technologies Co's Operating Margin % for the quarter that ended in Sep. 2024 was 6.77%.

Good Sign:

Shenzhen SEICHI Technologies Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

Shenzhen SEICHI Technologies Co's 5-Year average Growth Rate for Operating Margin % was 41.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Shenzhen SEICHI Technologies Co's annualized ROC % for the quarter that ended in Sep. 2024 was 7.14%. Shenzhen SEICHI Technologies Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 16.99%.


Shenzhen SEICHI Technologies Co Operating Income Historical Data

The historical data trend for Shenzhen SEICHI Technologies Co'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.

Shenzhen SEICHI Technologies Co Operating Income Chart

Shenzhen SEICHI Technologies Co Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.57 42.71 75.56 80.01 120.41

Shenzhen SEICHI Technologies Co Quarterly Data
Dec14 Dec15 Jun16 Dec16 Jun17 Dec17 Dec19 Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 Premium Member Only Premium Member Only 15.31 71.42 -14.14 66.36 13.85

Shenzhen SEICHI Technologies Co 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 Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥137.5 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.


Shenzhen SEICHI Technologies Co  (SHSE:688627) Operating Income Explanation

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

Shenzhen SEICHI Technologies Co's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=55.404 * ( 1 - 3.93% )/( (733.256 + 757.193)/ 2 )
=53.2266228/745.2245
=7.14 %

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))
=1989.761 - 233.881 - ( 1022.624 - max(0, 263.646 - 1841.313+1022.624))
=733.256

Invested Capital(Q: Sep. 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))
=1917.831 - 190.804 - ( 969.834 - max(0, 206.23 - 1775.32+969.834))
=757.193

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

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

Shenzhen SEICHI Technologies Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=92.44/( ( (47.413 + max(472.994, 0)) + (44.677 + max(522.801, 0)) )/ 2 )
=92.44/( ( 520.407 + 567.478 )/ 2 )
=92.44/543.9425
=16.99 %

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)
=(344.263 + 230.615 + 153.565) - (233.881 + 0 + 21.568)
=472.994

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(414.735 + 156.256 + 149.585) - (190.804 + 0 + 6.971)
=522.801

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

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

Shenzhen SEICHI Technologies Co's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2024 )/Revenue (Q: Sep. 2024 )
=13.851/204.594
=6.77 %

* 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.


Shenzhen SEICHI Technologies Co Operating Income Related Terms

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Shenzhen SEICHI Technologies Co Business Description

Traded in Other Exchanges
N/A
Address
Longhua Street, East of 1st Floor, Building D, 101 Industrial Park, No. 1 Fuanna Company, Qinghu Village, Longhua, Qinghu, Guangdong, Shenzhen, CHN, 518110
Shenzhen SEICHI Technologies Co Ltd is a provider of testing equipment and system solution. It is mainly engaged in research, development, production and sales of new display device testing equipment. Detection and calibration repair, and gradually extended to the field of semiconductor storage device testing equipment, related products are used in wafer testing, packaging testing and aging repair of semiconductor storage devices represented by DRAM.

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