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Tianli International Holdings (HKSE:01773) Gross Margin % : 35.43% (As of Feb. 2024)


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What is Tianli International Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tianli International Holdings's Gross Profit for the six months ended in Feb. 2024 was HK$634 Mil. Tianli International Holdings's Revenue for the six months ended in Feb. 2024 was HK$1,789 Mil. Therefore, Tianli International Holdings's Gross Margin % for the quarter that ended in Feb. 2024 was 35.43%.

Warning Sign:

Tianli International Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.4%.


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

HKSE:01773' s Gross Margin % Range Over the Past 10 Years
Min: 17.17   Med: 33.51   Max: 42.29
Current: 33.03


During the past 8 years, the highest Gross Margin % of Tianli International Holdings was 42.29%. The lowest was 17.17%. And the median was 33.51%.

HKSE:01773's Gross Margin % is ranked worse than
74.9% of 247 companies
in the Education industry
Industry Median: 47.56 vs HKSE:01773: 33.03

Tianli International Holdings had a gross margin of 35.43% for the quarter that ended in Feb. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Tianli International Holdings was -7.40% per year.


Tianli International Holdings Gross Margin % Historical Data

The historical data trend for Tianli International 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.

Tianli International Holdings Gross Margin % Chart

Tianli International Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Aug22 Aug23
Gross Margin %
Get a 7-Day Free Trial 42.00 41.02 17.17 33.19 33.83

Tianli International Holdings Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Feb22 Aug22 Feb23 Aug23 Feb24
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 28.27 37.24 39.17 30.09 35.43

Competitive Comparison of Tianli International Holdings's Gross Margin %

For the Education & Training Services subindustry, Tianli International 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.


Tianli International Holdings's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Tianli International Holdings's Gross Margin % distribution charts can be found below:

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



Tianli International Holdings Gross Margin % Calculation

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

Tianli International Holdings's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as

Gross Margin % (A: Aug. 2023 )=Gross Profit (A: Aug. 2023 ) / Revenue (A: Aug. 2023 )
=840.9 / 2486.048
=(Revenue - Cost of Goods Sold) / Revenue
=(2486.048 - 1645.128) / 2486.048
=33.83 %

Tianli International Holdings's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=633.8 / 1789.161
=(Revenue - Cost of Goods Sold) / Revenue
=(1789.161 - 1155.322) / 1789.161
=35.43 %

* 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.

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.


Tianli International Holdings  (HKSE:01773) 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

Tianli International Holdings had a gross margin of 35.43% for the quarter that ended in Feb. 2024 => 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.


Tianli International Holdings Gross Margin % Related Terms

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Tianli International Holdings (HKSE:01773) Business Description

Traded in Other Exchanges
N/A
Address
Qingyang Industrial Zone, Tower T25, Sichuan Province, Chengdu, CHN
Tianli International Holdings Ltd operates as a private education service provider in Western China. The Company provides clients with integrated education management and diversified services. Its services mainly include comprehensive education services, training services, study trip services, early childhood education services, canteen operations, management and franchise, as well as supply chain management services. The Company also offers extracurricular programs in music, arts, physical education and languages, as well as licensing rights to its brands for early childhood centers. Geographically, it derives revenue from PRC.
Executives
Luo Shi 2201 Interest of corporation controlled by you
First Beijing Investment Limited 2102 Investment manager
Tct (bvi) Limited 2501 Other
The Core Trust Company Limited 2301 Trustee
Tu Mengxuan 2202 Interest of your spouse
Sky Elite Limited 2101 Beneficial owner

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