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Continental Holdings (HKSE:00513) Gross Margin % : 24.92% (As of Dec. 2023)


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What is Continental Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Continental Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$49.9 Mil. Continental Holdings's Revenue for the six months ended in Dec. 2023 was HK$200.2 Mil. Therefore, Continental Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 24.92%.

Warning Sign:

Continental Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.6%.


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

HKSE:00513' s Gross Margin % Range Over the Past 10 Years
Min: 11.17   Med: 18.8   Max: 24.73
Current: 11.17


During the past 13 years, the highest Gross Margin % of Continental Holdings was 24.73%. The lowest was 11.17%. And the median was 18.80%.

HKSE:00513's Gross Margin % is ranked worse than
90.15% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.67 vs HKSE:00513: 11.17

Continental Holdings had a gross margin of 24.92% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Continental Holdings was -4.60% per year.


Continental Holdings Gross Margin % Historical Data

The historical data trend for Continental Holdings's Gross 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.

Continental Holdings Gross Margin % Chart

Continental Holdings Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.73 21.90 21.67 24.03 14.54

Continental Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross 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 25.10 22.69 27.07 -3.66 24.92

Competitive Comparison of Continental Holdings's Gross Margin %

For the Luxury Goods subindustry, Continental Holdings's Gross Margin %, along with its competitors' market caps and Gross 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.


Continental Holdings's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Continental Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Continental Holdings's Gross Margin % falls into.



Continental Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Continental Holdings's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=66.3 / 455.608
=(Revenue - Cost of Goods Sold) / Revenue
=(455.608 - 389.355) / 455.608
=14.54 %

Continental Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=49.9 / 200.183
=(Revenue - Cost of Goods Sold) / Revenue
=(200.183 - 150.295) / 200.183
=24.92 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Continental Holdings  (HKSE:00513) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Continental Holdings had a gross margin of 24.92% for the quarter that ended in Dec. 2023 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Continental Holdings Gross Margin % Related Terms

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


Continental Holdings (HKSE:00513) Business Description

Traded in Other Exchanges
N/A
Address
11 Hok Yuen Street, Flats M & N, 1st Floor, Kaiser Estate, Phase III, Hunghom, Kowloon, Hong Kong, HKG
Continental Holdings Ltd is a Hong Kong-based investment holding company principally engaged in jewelry and diamond businesses. Business activities are carried out in various segments namely Jewellery Business, Property investment and development, Mining operation and Investment. The company generates maximum revenue from Jewellery Business segment. Geographically the company's business presence is seen across the regions of Hong Kong, North America, Europe, the Middle East and various other countries.
Executives
Cheng Siu Yin Shirley 2201 Interest of corporation controlled by you
Chan Sing Chuk Charles

Continental Holdings (HKSE:00513) Headlines

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