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DAHCY (Dah Chong Hong Holdings) Operating Margin % : 2.63% (As of Jun. 2019)


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What is Dah Chong Hong Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Dah Chong Hong Holdings's Operating Income for the six months ended in Jun. 2019 was $80 Mil. Dah Chong Hong Holdings's Revenue for the six months ended in Jun. 2019 was $3,044 Mil. Therefore, Dah Chong Hong Holdings's Operating Margin % for the quarter that ended in Jun. 2019 was 2.63%.

Warning Sign:

Dah Chong Hong Holdings Ltd operating margin has been in 5-year decline. The average rate of decline per year is -5.7%.

The historical rank and industry rank for Dah Chong Hong Holdings's Operating Margin % or its related term are showing as below:

DAHCY' s Operating Margin % Range Over the Past 10 Years
Min: 1.56   Med: 2.93   Max: 4.55
Current: 2.25


DAHCY's Operating Margin % is not ranked
in the Vehicles & Parts industry.
Industry Median: 5.14 vs DAHCY: 2.25

Dah Chong Hong Holdings's 5-Year Average Operating Margin % Growth Rate was -5.70% per year.

Dah Chong Hong Holdings's Operating Income for the six months ended in Jun. 2019 was $80 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2019 was $144 Mil.


Dah Chong Hong Holdings Operating Margin % Historical Data

The historical data trend for Dah Chong Hong Holdings's Operating 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.

Dah Chong Hong Holdings Operating Margin % Chart

Dah Chong Hong Holdings Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.49 2.39 1.56 2.64 2.24

Dah Chong Hong Holdings Semi-Annual Data
Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19
Operating 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 2.06 3.13 2.61 1.90 2.63

Competitive Comparison of Dah Chong Hong Holdings's Operating Margin %

For the Auto & Truck Dealerships subindustry, Dah Chong Hong Holdings's Operating Margin %, along with its competitors' market caps and Operating 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.


Dah Chong Hong Holdings's Operating Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Dah Chong Hong Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Dah Chong Hong Holdings's Operating Margin % falls into.



Dah Chong Hong Holdings Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Dah Chong Hong Holdings's Operating Margin % for the fiscal year that ended in Dec. 2018 is calculated as

Operating Margin %=Operating Income (A: Dec. 2018 ) / Revenue (A: Dec. 2018 )
=145.791 / 6506.637
=2.24 %

Dah Chong Hong Holdings's Operating Margin % for the quarter that ended in Jun. 2019 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2019 ) / Revenue (Q: Jun. 2019 )
=79.99 / 3043.828
=2.63 %

* 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.


Dah Chong Hong Holdings  (OTCPK:DAHCY) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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.


Dah Chong Hong Holdings Operating Margin % Related Terms

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Dah Chong Hong Holdings Business Description

Traded in Other Exchanges
N/A
Address
20 Kai Cheung Road, 8th Floor, DCH Building, Kowloon Bay, HKG
Dah Chong Hong Holdings Ltd (DCH) is a business conglomerate that operates in the consumer market of Greater China, Singapore and Japan. DCH operates a diversified portfolio of business including motor and motor-related business, as well as food and consumer products business with its logistics services activities. DCH's majority of the revenue is earned from the motor and motor related business that includes distribution and dealership of motor vehicle, and it's other motor related business includes an operation of independent service outlets, trading of equipment parts & used car, motor leasing, and selling of yachts. It also operates other small business including property, advertising, insurance and other investments.

Dah Chong Hong Holdings Headlines

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