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Sinopharm Group Co (HKSE:01099) Operating Margin % : 3.29% (As of Jun. 2024)


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What is Sinopharm Group Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Sinopharm Group Co's Operating Income for the six months ended in Jun. 2024 was HK$10,450 Mil. Sinopharm Group Co's Revenue for the six months ended in Jun. 2024 was HK$317,286 Mil. Therefore, Sinopharm Group Co's Operating Margin % for the quarter that ended in Jun. 2024 was 3.29%.

Warning Sign:

Sinopharm Group Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.5%.

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

HKSE:01099' s Operating Margin % Range Over the Past 10 Years
Min: 3.27   Med: 4.07   Max: 4.57
Current: 3.27


HKSE:01099's Operating Margin % is ranked better than
54.46% of 112 companies
in the Medical Distribution industry
Industry Median: 2.99 vs HKSE:01099: 3.27

Sinopharm Group Co's 5-Year Average Operating Margin % Growth Rate was -3.50% per year.

Sinopharm Group Co's Operating Income for the six months ended in Jun. 2024 was HK$10,450 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was HK$20,463 Mil.


Sinopharm Group Co Operating Margin % Historical Data

The historical data trend for Sinopharm Group 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.

Sinopharm Group Co Operating Margin % Chart

Sinopharm Group Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.33 4.12 4.08 3.73 3.04

Sinopharm Group Co Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 4.50 3.69 3.77 3.29 3.24

Competitive Comparison of Sinopharm Group Co's Operating Margin %

For the Medical Distribution subindustry, Sinopharm Group 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.


Sinopharm Group Co's Operating Margin % Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Sinopharm Group Co's Operating Margin % distribution charts can be found below:

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



Sinopharm Group 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.

Sinopharm Group 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 )
=24366.067 / 652515.194
=3.73 %

Sinopharm Group Co's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=10450.346 / 317286.226
=3.29 %

* 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.


Sinopharm Group Co  (HKSE:01099) 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.


Sinopharm Group Co Operating Margin % Related Terms

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Sinopharm Group Co Business Description

Traded in Other Exchanges
Address
No. 385, East Longhua Road, Sinopharm Group Building, Huangpu District, Shanghai, CHN, 200023
Founded in 2003, Sinopharm is the largest wholesaler and retailer of drugs and medical devices in China and listed on the Hong Kong Stock Exchange in 2009. It is a core subsidiary of China National Pharmaceutical Group. Sinopharm's largest operating segment is pharmaceutical distribution, making up over 70% of its total revenue by the end of 2023. In 2018, Sinopharm acquired the largest Chinese medical device distributor, China National Scientific Instruments and Materials. Now, medical device distribution accounts for over 20% of Sinopharm's total revenue. Sinopharm's downstream customers range from hospitals and other health services institutions to end-customers.
Executives
Lazard Asset Management Llc 2102 Investment manager
Jpmorgan Chase & Co. 2201 Interest of corporation controlled by you
Zhong Xin Zheng Quan Yun Fan Dan Yi Zi Chan Guan Li Ji Hua 2501 Other
Zhong Xin Zheng Quan Zi Chan Guan Li You Xian Gong Si 2102 Investment manager
Citic Securities Company Limited 2201 Interest of corporation controlled by you
Citigroup Inc. 2502 Approved lending agent
Fmr Llc 2201 Interest of corporation controlled by you
Blackrock, Inc. 2201 Interest of corporation controlled by you

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