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Kangda International Environmental Co (HKSE:06136) Operating Margin % : 35.36% (As of Dec. 2023)


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What is Kangda International Environmental Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kangda International Environmental Co's Operating Income for the six months ended in Dec. 2023 was HK$434 Mil. Kangda International Environmental Co's Revenue for the six months ended in Dec. 2023 was HK$1,229 Mil. Therefore, Kangda International Environmental Co's Operating Margin % for the quarter that ended in Dec. 2023 was 35.36%.

Good Sign:

Kangda International Environmental Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

HKSE:06136' s Operating Margin % Range Over the Past 10 Years
Min: 30.25   Med: 35.16   Max: 39.35
Current: 36.64


HKSE:06136's Operating Margin % is ranked better than
92.97% of 512 companies
in the Utilities - Regulated industry
Industry Median: 12.435 vs HKSE:06136: 36.64

Kangda International Environmental Co's 5-Year Average Operating Margin % Growth Rate was 3.20% per year.

Kangda International Environmental Co's Operating Income for the six months ended in Dec. 2023 was HK$434 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$888 Mil.


Kangda International Environmental Co Operating Margin % Historical Data

The historical data trend for Kangda International Environmental 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.

Kangda International Environmental Co Operating Margin % Chart

Kangda International Environmental 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 35.13 34.67 39.35 35.18 36.64

Kangda International Environmental Co Semi-Annual Data
Jun14 Dec14 Jun15 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 Premium Member Only Premium Member Only 37.73 35.73 34.44 37.96 35.36

Competitive Comparison of Kangda International Environmental Co's Operating Margin %

For the Utilities - Regulated Water subindustry, Kangda International Environmental 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.


Kangda International Environmental Co's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Kangda International Environmental Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kangda International Environmental Co's Operating Margin % falls into.



Kangda International Environmental 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.

Kangda International Environmental 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 )
=888.302 / 2424.231
=36.64 %

Kangda International Environmental Co'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 )
=434.491 / 1228.641
=35.36 %

* 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.


Kangda International Environmental Co  (HKSE:06136) 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.


Kangda International Environmental Co Operating Margin % Related Terms

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Kangda International Environmental Co (HKSE:06136) Business Description

Traded in Other Exchanges
N/A
Address
No. 72, Avenue of Stars, High-Tech Park, North New Zone, Chongqing, CHN
Kangda International Environmental Co Ltd provides water and waste treatment, new energy development, and environmental protection equipment. The company has three reportable segments namely Urban Water Treatment, Water Environment Comprehensive Remediation and Rural Water Improvement. It generates maximum revenue from the Urban Water Treatment segment. Geographically, it derives revenue from Mainland China. It serves various sectors of the water industry such as integrated watershed management, sponge cities, reclaimed water, sludge, heat pump, and photovoltaic.
Executives
Bpea Eqt Holdings Ab 2201 Interest of corporation controlled by you
Eqt Ab 2201 Interest of corporation controlled by you
Salata Jean Eric 2201 Interest of corporation controlled by you
Zhao Juanxian (alias, Junxian) 2401 A concert party to an agreement to buy shares
Zhao Sizhen 2201 Interest of corporation controlled by you
Kangda Holdings Company Limited 2101 Beneficial owner
China Water Affairs Group Limited 2201 Interest of corporation controlled by you
Sharp Profit Investments Limited 2101 Beneficial owner
Baring Private Equity Asia Gp V Limited
Baring Private Equity Asia Gp V, L.p.
Baring Private Equity Asia V Holding (5) Limited
The Baring Asia Private Equity Fund V, L.p.

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