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AM Group Holdings (HKSE:01849) Operating Margin % : -1.94% (As of Dec. 2023)


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What is AM Group Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. AM Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$-1.7 Mil. AM Group Holdings's Revenue for the six months ended in Dec. 2023 was HK$88.7 Mil. Therefore, AM Group Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was -1.94%.

Warning Sign:

AM Group Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -15.6%.

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

HKSE:01849' s Operating Margin % Range Over the Past 10 Years
Min: 1.58   Med: 15.3   Max: 19.27
Current: 1.58


HKSE:01849's Operating Margin % is ranked worse than
55.43% of 1032 companies
in the Media - Diversified industry
Industry Median: 3.35 vs HKSE:01849: 1.58

AM Group Holdings's 5-Year Average Operating Margin % Growth Rate was -15.60% per year.

AM Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$-1.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$3.7 Mil.


AM Group Holdings Operating Margin % Historical Data

The historical data trend for AM 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.

AM Group Holdings Operating Margin % Chart

AM Group Holdings Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial 13.20 12.78 17.39 9.99 6.40

AM Group Holdings Semi-Annual Data
Jun16 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 18.53 -10.47 9.11 3.78 -1.94

Competitive Comparison of AM Group Holdings's Operating Margin %

For the Advertising Agencies subindustry, AM 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.


AM Group Holdings's Operating Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, AM Group Holdings's Operating Margin % distribution charts can be found below:

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



AM 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.

AM Group Holdings's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=17.956 / 280.462
=6.40 %

AM 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 )
=-1.718 / 88.692
=-1.94 %

* 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.


AM Group Holdings  (HKSE:01849) 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.


AM Group Holdings Operating Margin % Related Terms

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


AM Group Holdings (HKSE:01849) Business Description

Traded in Other Exchanges
N/A
Address
60 Paya Lebar Road, No.12 - 51/52, Paya Lebar Square, Singapore City, SGP, 409051
AM Group Holdings Ltd is engaged in providing online marketing services in Singapore. The company's segment consists of Search engine marketing services, Creative and technology services, Social media marketing services, and Online e-commerce platform operations. The company generates the majority of its revenue from the Online e-commerce platform operation segment which is engaged in technical services, commission for transaction proceeds, and marketing services on the online e-commerce platform in the PRC.
Executives
Yeung Kelvin 2101 Beneficial owner
Teo Li Lian 2202 Interest of your spouse
Sim Hak Chor 2101 Beneficial owner
Activa Media Investment Limited 2101 Beneficial owner
Teo Kuo Liang 2201 Interest of corporation controlled by you

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