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Tsingtao Brewery Co (HKSE:00168) Operating Margin % : 18.31% (As of Sep. 2024)


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What is Tsingtao Brewery Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Tsingtao Brewery Co's Operating Income for the three months ended in Sep. 2024 was HK$1,792 Mil. Tsingtao Brewery Co's Revenue for the three months ended in Sep. 2024 was HK$9,789 Mil. Therefore, Tsingtao Brewery Co's Operating Margin % for the quarter that ended in Sep. 2024 was 18.31%.

Good Sign:

Tsingtao Brewery Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Tsingtao Brewery Co's Operating Margin % or its related term are showing as below:

HKSE:00168' s Operating Margin % Range Over the Past 10 Years
Min: 3.96   Med: 7.56   Max: 15.4
Current: 15.4


HKSE:00168's Operating Margin % is ranked better than
73.46% of 211 companies
in the Beverages - Alcoholic industry
Industry Median: 7.68 vs HKSE:00168: 15.40

Tsingtao Brewery Co's 5-Year Average Operating Margin % Growth Rate was 15.40% per year.

Tsingtao Brewery Co's Operating Income for the three months ended in Sep. 2024 was HK$1,792 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was HK$5,329 Mil.


Tsingtao Brewery Co Operating Margin % Historical Data

The historical data trend for Tsingtao Brewery Co'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.

Tsingtao Brewery Co Operating Margin % Chart

Tsingtao Brewery Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.82 10.21 11.58 13.27 14.13

Tsingtao Brewery Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 19.04 -38.51 18.98 25.20 18.31

Competitive Comparison of Tsingtao Brewery Co's Operating Margin %

For the Beverages - Brewers subindustry, Tsingtao Brewery Co'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.


Tsingtao Brewery Co's Operating Margin % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Tsingtao Brewery Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Tsingtao Brewery Co's Operating Margin % falls into.



Tsingtao Brewery Co 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.

Tsingtao Brewery Co's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=5245.747 / 37119.052
=14.13 %

Tsingtao Brewery 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 )
=1791.956 / 9789.377
=18.31 %

* 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.


Tsingtao Brewery Co  (HKSE:00168) 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.


Tsingtao Brewery Co Operating Margin % Related Terms

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Tsingtao Brewery Co Business Description

Address
No. 35, Donghai West Road, Tsingtao Beer Tower, Shandong Province, Qingdao, CHN, 266071
With over 100 years of history, Tsingtao Brewery has become one of the leading brewers in China with its namesake Tsingtao brand. The company has a dominant position in its core market, Shandong province, which contributed close to 60% of its revenue and net profit in 2023. Unlike other major brewers, Tsingtao Brewery's brand umbrellas consist entirely of domestic brands. The Tsingtao brand has a mid-range to high-end market positioning and contributed over half of its volume whereas the mass market Laoshan brand targets the mainstream segment, with a declining volume mix as the company sought to premiumize its portfolio.
Executives
Jpmorgan Chase & Co.
Fil Limited 2201 Interest of corporation controlled by you
Pandanus Associates Inc. 2201 Interest of corporation controlled by you
Pandanus Partners L.p. 2201 Interest of corporation controlled by you
Blackrock, Inc. 2201 Interest of corporation controlled by you
Fmr Llc 2201 Interest of corporation controlled by you
Citigroup Inc. 2502 Approved lending agent
T. Rowe Price Associates, Inc. And Its Affiliates 2101 Beneficial owner
Qing Dao Pi Jiu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Qing Dao Shi Ren Min Zheng Fu Guo You Zi Chan Jian Du Guan Li Wei Yuan Hui 2201 Interest of corporation controlled by you
Xiang Gang Xin Hai Sheng Tou Zi Fa Zhan You Xian Gong Si 2101 Beneficial owner

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