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Risecomm Group Holdings (HKSE:01679) Operating Margin % : -54.26% (As of Dec. 2023)


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What is Risecomm Group Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Risecomm Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$-35.5 Mil. Risecomm Group Holdings's Revenue for the six months ended in Dec. 2023 was HK$65.4 Mil. Therefore, Risecomm Group Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was -54.26%.

Warning Sign:

Risecomm Group Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -120.9%.

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

HKSE:01679' s Operating Margin % Range Over the Past 10 Years
Min: -64.37   Med: -11.7   Max: 25.31
Current: -64.37


HKSE:01679's Operating Margin % is ranked worse than
92.81% of 987 companies
in the Semiconductors industry
Industry Median: 5.09 vs HKSE:01679: -64.37

Risecomm Group Holdings's 5-Year Average Operating Margin % Growth Rate was -120.90% per year.

Risecomm Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$-35.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$-66.8 Mil.

Warning Sign:

Risecomm Group Holdings Ltd has never been profitable in the past 3 years. It lost money every year.


Risecomm Group Holdings Operating Margin % Historical Data

The historical data trend for Risecomm Group 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.

Risecomm Group Holdings Operating Margin % Chart

Risecomm Group Holdings 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 -28.20 -37.45 -23.14 -35.20 -64.37

Risecomm Group Holdings Semi-Annual Data
Dec14 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 -16.84 -37.15 -33.85 -81.58 -54.26

Competitive Comparison of Risecomm Group Holdings's Operating Margin %

For the Semiconductors subindustry, Risecomm Group 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.


Risecomm Group Holdings's Operating Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Risecomm Group Holdings's Operating Margin % distribution charts can be found below:

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



Risecomm Group 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.

Risecomm Group Holdings'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 )
=-66.794 / 103.765
=-64.37 %

Risecomm Group Holdings's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-35.467 / 65.366
=-54.26 %

* 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.


Risecomm Group Holdings  (HKSE:01679) 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.


Risecomm Group Holdings Operating Margin % Related Terms

Thank you for viewing the detailed overview of Risecomm Group Holdings's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Risecomm Group Holdings (HKSE:01679) Business Description

Traded in Other Exchanges
N/A
Address
Xili Street, 41st Floor, Block A, Building 8, Shenzhen International Innovation Valley, Nanshan Distric, Shenzhen, CHN, 518055
Risecomm Group Holdings Ltd is an investment holding company. It operates in two business segments namely, Automated Meter Reading (AMR) and other includes design, development, and sale of power line communication products and energy-saving and environmental protection products and solutions used in streetlight control, building energy management, photovoltaic power management, and providing maintenance services in connections with the deployment and upgrading of AMR systems in PRC; and Smart manufacturing & industrial automation (SMIA) business segment includes the sales of the software license, safety products as well as the provision of software post-contract customers support services. It generates revenue from AMR business. Geographically, it derives revenue from the PRC.
Executives
Fu Xiaoqin 2101 Beneficial owner
Xindaxin Group Company Limited 2101 Beneficial owner
Silver Castle International Limited 2201 Interest of corporation controlled by you
Yan Andrew Y 2201 Interest of corporation controlled by you
Wu Yueshi 2201 Interest of corporation controlled by you
Sb Asia Investment Fund Ii L.p. 2101 Beneficial owner
Saif Partners Ii Lp 2201 Interest of corporation controlled by you
Saif Ii Gp Lp 2201 Interest of corporation controlled by you
Saif Ii Gp Capital Ltd. 2201 Interest of corporation controlled by you
Cisco Systems, Inc. 2201 Interest of corporation controlled by you
Liu Bei Bei 2101 Beneficial owner
Yu Lu 2101 Beneficial owner
Ding Zhigang 2101 Beneficial owner
Ning Jun 2101 Beneficial owner
Spitzer Fund Vi L.p.

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