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OneForce Holdings (HKSE:01933) Gross Margin % : 16.16% (As of Sep. 2023)


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What is OneForce Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. OneForce Holdings's Gross Profit for the six months ended in Sep. 2023 was HK$44.0 Mil. OneForce Holdings's Revenue for the six months ended in Sep. 2023 was HK$272.1 Mil. Therefore, OneForce Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 16.16%.

Warning Sign:

OneForce Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -12.2%.


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

HKSE:01933' s Gross Margin % Range Over the Past 10 Years
Min: 14.58   Med: 32.93   Max: 51.63
Current: 19.51


During the past 9 years, the highest Gross Margin % of OneForce Holdings was 51.63%. The lowest was 14.58%. And the median was 32.93%.

HKSE:01933's Gross Margin % is ranked worse than
82.71% of 2631 companies
in the Software industry
Industry Median: 41.73 vs HKSE:01933: 19.51

OneForce Holdings had a gross margin of 16.16% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for OneForce Holdings was -12.20% per year.


OneForce Holdings Gross Margin % Historical Data

The historical data trend for OneForce 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.

OneForce Holdings Gross Margin % Chart

OneForce Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 32.93 14.58 22.80 23.43 21.09

OneForce Holdings Semi-Annual Data
Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 19.53 26.43 19.00 22.48 16.16

Competitive Comparison of OneForce Holdings's Gross Margin %

For the Software - Application subindustry, OneForce 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.


OneForce Holdings's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, OneForce Holdings's Gross Margin % distribution charts can be found below:

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



OneForce Holdings Gross Margin % Calculation

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

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

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=108.1 / 512.389
=(Revenue - Cost of Goods Sold) / Revenue
=(512.389 - 404.322) / 512.389
=21.09 %

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


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=44 / 272.129
=(Revenue - Cost of Goods Sold) / Revenue
=(272.129 - 228.159) / 272.129
=16.16 %

* 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.


OneForce Holdings  (HKSE:01933) 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

OneForce Holdings had a gross margin of 16.16% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage


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.


OneForce Holdings Gross Margin % Related Terms

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


OneForce Holdings (HKSE:01933) Business Description

Traded in Other Exchanges
N/A
Address
No. 9, 3rd Shang Di Street, 9th Floor, Tower E, Jia Hua Mansion, Haidian District, Beijing, CHN
OneForce Holdings Ltd is engaged in the design, implementation, enhancement, and upgrades of software systems and the provision of technical services and hardware for the power grid and distribution companies in the People's Republic of China. Its operating segment includes Software and solutions; Technical Services and Products. The company generates maximum revenue from the Technical services segment. Geographically, it operates in China.
Executives
Trident Trust Company (cayman) Limited 2301 Trustee
Cao Mingda 2307 Founder of a discretionary trust who can infl
Toplight Management Limited 2201 Interest of corporation controlled by you
Pang Ziqian 2202 Interest of your spouse
Long Eagle International Limited
China Construction Bank Corporation 2201 Interest of corporation controlled by you
Central Huijin Investment Ltd. 2201 Interest of corporation controlled by you
Great Attain International Limited 2101 Beneficial owner
Wang Dongbin 2201 Interest of corporation controlled by you
Xiong Weiqin 2202 Interest of your spouse
Cao Wei 2201 Interest of corporation controlled by you
Smart East Limited 2201 Interest of corporation controlled by you
Wang Jiangping 2202 Interest of your spouse
An Ning 2202 Interest of your spouse
Zhang Jianhua 2202 Interest of your spouse

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