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Geotech Holdings (HKSE:01707) Operating Margin % : -17.99% (As of Dec. 2024)


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What is Geotech Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Geotech Holdings's Operating Income for the six months ended in Dec. 2024 was HK$-8.58 Mil. Geotech Holdings's Revenue for the six months ended in Dec. 2024 was HK$47.71 Mil. Therefore, Geotech Holdings's Operating Margin % for the quarter that ended in Dec. 2024 was -17.99%.

Warning Sign:

Geotech Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -37.7%.

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

HKSE:01707' s Operating Margin % Range Over the Past 10 Years
Min: -23.76   Med: -5.11   Max: 10.91
Current: -23.76


HKSE:01707's Operating Margin % is ranked worse than
93.29% of 1729 companies
in the Construction industry
Industry Median: 5.43 vs HKSE:01707: -23.76

Geotech Holdings's 5-Year Average Operating Margin % Growth Rate was -37.70% per year.

Geotech Holdings's Operating Income for the six months ended in Dec. 2024 was HK$-8.58 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was HK$-19.13 Mil.


Geotech Holdings Operating Margin % Historical Data

The historical data trend for Geotech 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.

Geotech Holdings Operating Margin % Chart

Geotech Holdings 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 -5.31 -6.34 -6.39 -15.95 -23.76

Geotech Holdings Semi-Annual Data
Dec14 Dec15 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 -9.32 -15.10 -16.70 -32.15 -17.99

Competitive Comparison of Geotech Holdings's Operating Margin %

For the Engineering & Construction subindustry, Geotech 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.


Geotech Holdings's Operating Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Geotech Holdings's Operating Margin % distribution charts can be found below:

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


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Geotech 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.

Geotech Holdings's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=-19.125 / 80.501
=-23.76 %

Geotech Holdings's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=-8.583 / 47.711
=-17.99 %

* 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.


Geotech Holdings  (HKSE:01707) 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.


Geotech Holdings Operating Margin % Related Terms

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


Geotech Holdings Business Description

Traded in Other Exchanges
N/A
Address
223 Hing Fong Road, Unit 706-708, 7th Floor, Tower II, Metroplaza, Kwai Chung, New Territories, Hong Kong, HKG
Geotech Holdings Ltd is an investment holding company. The firm is engaged in the provision of construction and engineering services and property-related services sales of luxury products. It is principally engaged in the slope works in Hong Kong as the main contractor. It mainly operates in three segments; Construction and engineering services; Property-related services; and Sales of luxury products. The group undertakes slope works as the main contractor and undertakes ground investigation field works as a subcontractor. It derives the majority of its revenue from Hong Kong. The Construction and engineering services segment derives key revenue for the firm.
Executives
Chen Zhi 2201 Interest of corporation controlled by you
Star Merit Global Limited 2101 Beneficial owner
Cheung Ting Kam 2201 Interest of corporation controlled by you

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