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Hilong Holding (HKSE:01623) Operating Margin % : 7.05% (As of Dec. 2024)


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What is Hilong Holding Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Hilong Holding's Operating Income for the six months ended in Dec. 2024 was HK$166 Mil. Hilong Holding's Revenue for the six months ended in Dec. 2024 was HK$2,352 Mil. Therefore, Hilong Holding's Operating Margin % for the quarter that ended in Dec. 2024 was 7.05%.

Warning Sign:

Hilong Holding Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.7%.

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

HKSE:01623' s Operating Margin % Range Over the Past 10 Years
Min: 6.75   Med: 12.59   Max: 15.39
Current: 9.43


HKSE:01623's Operating Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 7.68 vs HKSE:01623: 9.43

Hilong Holding's 5-Year Average Operating Margin % Growth Rate was -4.70% per year.

Hilong Holding's Operating Income for the six months ended in Dec. 2024 was HK$166 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was HK$472 Mil.


Hilong Holding Operating Margin % Historical Data

The historical data trend for Hilong Holding'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.

Hilong Holding Operating Margin % Chart

Hilong Holding 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 6.75 12.74 9.34 8.63 9.42

Hilong Holding Semi-Annual Data
Jun15 Dec15 Jun16 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 Premium Member Only 7.16 8.27 8.91 11.54 7.05

Competitive Comparison of Hilong Holding's Operating Margin %

For the Oil & Gas Equipment & Services subindustry, Hilong Holding'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.


Hilong Holding's Operating Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Hilong Holding's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hilong Holding's Operating Margin % falls into.


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Hilong Holding 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.

Hilong Holding'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 )
=469.628 / 4984.248
=9.42 %

Hilong Holding'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 )
=165.839 / 2351.752
=7.05 %

* 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.


Hilong Holding  (HKSE:01623) 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.


Hilong Holding Operating Margin % Related Terms

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Hilong Holding Business Description

Traded in Other Exchanges
N/A
Address
No. 1825, Luodong Road, Baoshan Industrial Zone, Shanghai, CHN, 200949
Hilong Holding Ltd manufactures and distributes oil and gas drilling equipment and coating materials, and provisions coating, oilfield, and offshore engineering services. Its segments include Oilfield equipment manufacturing and services including the production of oilfield equipment and provision of OCTG coating services; Oilfield services provision, including the provision of well drilling services, integrated comprehensive services, oil country tubular goods (OCTG) trading and related services to oil and gas producers; and Offshore engineering services includes the provision of offshore engineering services and offshore design services. The Oilfield equipment manufacturing and services segment derives maximum revenue.
Executives
Scts Capital Pte. Ltd. 2306 Nominee for another person
Standard Chartered Trust (singapore) Limited 2301 Trustee
Gao Xia 2202 Interest of your spouse
Zhang Jun 2307 Founder of a discretionary trust who can infl
Hilong Group Limited 2101 Beneficial owner
Zhao Shumin 2101 Beneficial owner

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