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Frontage Holdings (HKSE:01521) Gross Margin % : 29.97% (As of Dec. 2023)


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What is Frontage Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Frontage Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$308 Mil. Frontage Holdings's Revenue for the six months ended in Dec. 2023 was HK$1,027 Mil. Therefore, Frontage Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 29.97%.

Warning Sign:

Frontage Holdings Corp gross margin has been in long-term decline. The average rate of decline per year is -4.3%.


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

HKSE:01521' s Gross Margin % Range Over the Past 10 Years
Min: 30.17   Med: 36.65   Max: 44.25
Current: 30.17


During the past 8 years, the highest Gross Margin % of Frontage Holdings was 44.25%. The lowest was 30.17%. And the median was 36.65%.

HKSE:01521's Gross Margin % is ranked worse than
78.93% of 750 companies
in the Biotechnology industry
Industry Median: 60.88 vs HKSE:01521: 30.17

Frontage Holdings had a gross margin of 29.97% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Frontage Holdings was -4.30% per year.


Frontage Holdings Gross Margin % Historical Data

The historical data trend for Frontage 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.

Frontage Holdings Gross Margin % Chart

Frontage Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 37.14 32.97 36.16 35.63 30.17

Frontage Holdings Semi-Annual Data
Dec16 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 37.30 37.16 34.23 30.37 29.97

Competitive Comparison of Frontage Holdings's Gross Margin %

For the Biotechnology subindustry, Frontage 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.


Frontage Holdings's Gross Margin % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Frontage Holdings's Gross Margin % distribution charts can be found below:

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



Frontage Holdings Gross Margin % Calculation

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

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

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=612.2 / 2029.416
=(Revenue - Cost of Goods Sold) / Revenue
=(2029.416 - 1417.175) / 2029.416
=30.17 %

Frontage 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 )
=307.8 / 1026.981
=(Revenue - Cost of Goods Sold) / Revenue
=(1026.981 - 719.228) / 1026.981
=29.97 %

* 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.


Frontage Holdings  (HKSE:01521) 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

Frontage Holdings had a gross margin of 29.97% 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.


Frontage Holdings Gross Margin % Related Terms

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


Frontage Holdings (HKSE:01521) Business Description

Traded in Other Exchanges
Address
700 Pennsylvania Drive, Exton, PA, USA, 19341
Frontage Holdings Corp is a contract research organization providing integrated, scientifically driven research, analytical and development services. Geographically the group operates in both PRC and North America. The services provided in the North American segment, include Bioanalytical, CMC, DMPK and Safety and Toxicology services in the USA and Canada. The service offered in PRC includes Bioanalytical, Bioequivalence and CMC services in the PRC. Further, it also provides bioanalytical services, which are offered throughout the drug discovery and development process both in the United States and China.
Executives
Hang Zhou Tai Ge Yi Yao Ke Ji Gu Fen You Xian Gong Si 2101 Beneficial owner
Li Song 2101 Beneficial owner
Kabouter Management Llc 2102 Investment manager
Hangzhou Tigermed Consulting Co., Ltd.
Hongkong Tigermed Co., Limited

Frontage Holdings (HKSE:01521) Headlines

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