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China Unicom (Hong Kong) (HKSE:00762) Operating Margin % : -0.43% (As of Dec. 2023)


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What is China Unicom (Hong Kong) Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. China Unicom (Hong Kong)'s Operating Income for the three months ended in Dec. 2023 was HK$-430 Mil. China Unicom (Hong Kong)'s Revenue for the three months ended in Dec. 2023 was HK$99,429 Mil. Therefore, China Unicom (Hong Kong)'s Operating Margin % for the quarter that ended in Dec. 2023 was -0.43%.

Good Sign:

China Unicom (Hong Kong) Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for China Unicom (Hong Kong)'s Operating Margin % or its related term are showing as below:

HKSE:00762' s Operating Margin % Range Over the Past 10 Years
Min: 1.11   Med: 5.49   Max: 8.4
Current: 1.66


HKSE:00762's Operating Margin % is ranked worse than
73.23% of 381 companies
in the Telecommunication Services industry
Industry Median: 8.26 vs HKSE:00762: 1.66

China Unicom (Hong Kong)'s 5-Year Average Operating Margin % Growth Rate was 0.50% per year.

China Unicom (Hong Kong)'s Operating Income for the three months ended in Dec. 2023 was HK$-430 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$5,032 Mil.


China Unicom (Hong Kong) Operating Margin % Historical Data

The historical data trend for China Unicom (Hong Kong)'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.

China Unicom (Hong Kong) Operating Margin % Chart

China Unicom (Hong Kong) 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 4.91 6.92 6.32 6.86 4.02

China Unicom (Hong Kong) Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23 Mar24
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 12.41 - -0.45 -0.43 5.46

Competitive Comparison of China Unicom (Hong Kong)'s Operating Margin %

For the Telecom Services subindustry, China Unicom (Hong Kong)'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.


China Unicom (Hong Kong)'s Operating Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, China Unicom (Hong Kong)'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where China Unicom (Hong Kong)'s Operating Margin % falls into.



China Unicom (Hong Kong) 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.

China Unicom (Hong Kong)'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 )
=16368.401 / 407538.731
=4.02 %

China Unicom (Hong Kong)'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 )
=-429.855 / 99428.876
=-0.43 %

* 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.


China Unicom (Hong Kong)  (HKSE:00762) 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.


China Unicom (Hong Kong) Operating Margin % Related Terms

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China Unicom (Hong Kong) (HKSE:00762) Business Description

Traded in Other Exchanges
Address
99 Queen's Road, 75th Floor, The Center, Central, Hong Kong, HKG
China Unicom is the incumbent fixed-line operator in 10 northern Chinese provinces, as well as the third-largest wireless operator nationwide. As at June 2023, it had 328 million billing wireless customers and around 108 million broadband subscribers. China Unicom also has a growing ICT business. We estimate it has the third largest internet data center business in China and its Cloud Service revenue is also showing very strong growth. It has its own 4G network and shares the radio access function with China Telecom for its 5G network.

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