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Hup Seng Industries Bhd (XKLS:5024) Operating Income : RM62.1 Mil (TTM As of Mar. 2024)


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What is Hup Seng Industries Bhd Operating Income?

Hup Seng Industries Bhd's Operating Income for the three months ended in Mar. 2024 was RM18.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was RM62.1 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hup Seng Industries Bhd's Operating Income for the three months ended in Mar. 2024 was RM18.7 Mil. Hup Seng Industries Bhd's Revenue for the three months ended in Mar. 2024 was RM93.6 Mil. Therefore, Hup Seng Industries Bhd's Operating Margin % for the quarter that ended in Mar. 2024 was 19.95%.

Warning Sign:

Hup Seng Industries Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -6.4%.

Hup Seng Industries Bhd's 5-Year average Growth Rate for Operating Margin % was -6.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hup Seng Industries Bhd's annualized ROC % for the quarter that ended in Mar. 2024 was 57.50%. Hup Seng Industries Bhd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 93.99%.


Hup Seng Industries Bhd Operating Income Historical Data

The historical data trend for Hup Seng Industries Bhd'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.

Hup Seng Industries Bhd Operating Income Chart

Hup Seng Industries Bhd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 50.81 52.07 34.77 32.54 56.51

Hup Seng Industries Bhd Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 13.09 11.64 17.39 14.38 18.67

Hup Seng Industries Bhd 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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was RM62.1 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.


Hup Seng Industries Bhd  (XKLS:5024) Operating Income Explanation

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

Hup Seng Industries Bhd's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=74.66 * ( 1 - 25.13% )/( (104.717 + 89.7)/ 2 )
=55.897942/97.2085
=57.50 %

where

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

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

Hup Seng Industries Bhd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=74.66/( ( (73.883 + max(-2.044, 0)) + (84.978 + max(-8.268, 0)) )/ 2 )
=74.66/( ( 73.883 + 84.978 )/ 2 )
=74.66/79.4305
=93.99 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(36.723 + 30.126 + 0.84200000000001) - (45.398 + 0 + 24.337)
=-2.044

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(35.563 + 29.314 + 0.94) - (71.296 + 0 + 2.789)
=-8.268

When net working capital is negative, 0 is used.

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

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

Hup Seng Industries Bhd's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=18.665/93.565
=19.95 %

* 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.


Hup Seng Industries Bhd Operating Income Related Terms

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Hup Seng Industries Bhd (XKLS:5024) Business Description

Traded in Other Exchanges
N/A
Address
14 Jalan Kilang, Kawasan Perindustrian, Batu Pahat, Tongkang Pecah, JHR, MYS, 83010
Hup Seng Industries Bhd is engaged in the business of manufacturing biscuits. Principally, it is involved in the production and sale of biscuits and confectionery food items as well as beverages. The company operates through three segments. It's Biscuit manufacturing segment manufacture and sells biscuits. The Beverage segment consists of wholesale of coffee mix and all kinds of foodstuff. It's Trading division segment markets and distributes biscuits, confectionery, and other foodstuffs. The company offers special cream crackers, cookies, cream sandwich biscuits, peanut butter sandwich, and many more.

Hup Seng Industries Bhd (XKLS:5024) Headlines

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