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Zecon Bhd (XKLS:7028) Gross Margin % : 62.68% (As of Mar. 2024)


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What is Zecon Bhd Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zecon Bhd's Gross Profit for the three months ended in Mar. 2024 was RM8.71 Mil. Zecon Bhd's Revenue for the three months ended in Mar. 2024 was RM13.90 Mil. Therefore, Zecon Bhd's Gross Margin % for the quarter that ended in Mar. 2024 was 62.68%.


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

XKLS:7028' s Gross Margin % Range Over the Past 10 Years
Min: -5.96   Med: 10.69   Max: 51.26
Current: 51.26


During the past 13 years, the highest Gross Margin % of Zecon Bhd was 51.26%. The lowest was -5.96%. And the median was 10.69%.

XKLS:7028's Gross Margin % is ranked better than
90% of 1610 companies
in the Construction industry
Industry Median: 19.215 vs XKLS:7028: 51.26

Zecon Bhd had a gross margin of 62.68% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Zecon Bhd was 0.00% per year.


Zecon Bhd Gross Margin % Historical Data

The historical data trend for Zecon Bhd'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.

Zecon Bhd Gross Margin % Chart

Zecon Bhd Annual Data
Trend Dec11 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.96 1.94 13.70 31.75 46.74

Zecon Bhd Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Sep21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 41.72 41.77 7.10 97.21 62.68

Competitive Comparison of Zecon Bhd's Gross Margin %

For the Engineering & Construction subindustry, Zecon Bhd'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.


Zecon Bhd's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Zecon Bhd's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zecon Bhd's Gross Margin % falls into.



Zecon Bhd Gross Margin % Calculation

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

Zecon Bhd'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 )
=39.1 / 83.65
=(Revenue - Cost of Goods Sold) / Revenue
=(83.65 - 44.548) / 83.65
=46.74 %

Zecon Bhd's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=8.7 / 13.895
=(Revenue - Cost of Goods Sold) / Revenue
=(13.895 - 5.186) / 13.895
=62.68 %

* 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.


Zecon Bhd  (XKLS:7028) 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

Zecon Bhd had a gross margin of 62.68% for the quarter that ended in Mar. 2024 => Durable 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.


Zecon Bhd Gross Margin % Related Terms

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Zecon Bhd (XKLS:7028) Business Description

Traded in Other Exchanges
N/A
Address
Jalan Satok, Menara Zecon, Number 92, Lot 393, 8th Floor, Section 5 KTLD, Kuching, SWK, MYS, 93400
Zecon Bhd provides civil engineering and building construction services. The company operates through the following business segments: Construction, Property Development, Service Concession, Property holding and Others. Its Construction segment engages in piling works, foundation engineering, and building construction. The Property Development segment engages in property holding and development. Service Concession segment engages in the construction, operation, and maintenance of the hospital. Its Other segment engages in management services. The firm derives the majority of its revenue from Service concession segment.

Zecon Bhd (XKLS:7028) Headlines

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