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China Huajun Group (HKSE:00377) Operating Margin % : -14.33% (As of Dec. 2023)


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What is China Huajun Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. China Huajun Group's Operating Income for the six months ended in Dec. 2023 was HK$-129 Mil. China Huajun Group's Revenue for the six months ended in Dec. 2023 was HK$904 Mil. Therefore, China Huajun Group's Operating Margin % for the quarter that ended in Dec. 2023 was -14.33%.

Warning Sign:

China Huajun Group Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -23.2%.

The historical rank and industry rank for China Huajun Group's Operating Margin % or its related term are showing as below:

HKSE:00377' s Operating Margin % Range Over the Past 10 Years
Min: -39.6   Med: -4.53   Max: 2.75
Current: -5.42


HKSE:00377's Operating Margin % is ranked worse than
86.3% of 1526 companies
in the Chemicals industry
Industry Median: 5.77 vs HKSE:00377: -5.42

China Huajun Group's 5-Year Average Operating Margin % Growth Rate was -23.20% per year.

China Huajun Group's Operating Income for the six months ended in Dec. 2023 was HK$-129 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$-169 Mil.


China Huajun Group Operating Margin % Historical Data

The historical data trend for China Huajun Group's Operating 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.

China Huajun Group Operating Margin % Chart

China Huajun Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.16 -12.61 -9.49 -39.60 -5.42

China Huajun Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Operating 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 -12.09 -10.30 -73.37 -1.77 -14.33

Competitive Comparison of China Huajun Group's Operating Margin %

For the Specialty Chemicals subindustry, China Huajun Group's Operating Margin %, along with its competitors' market caps and Operating 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.


China Huajun Group's Operating Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, China Huajun Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where China Huajun Group's Operating Margin % falls into.



China Huajun Group Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

China Huajun Group's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=-168.572 / 3111.594
=-5.42 %

China Huajun Group's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-129.443 / 903.599
=-14.33 %

* 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.


China Huajun Group  (HKSE:00377) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


China Huajun Group Operating Margin % Related Terms

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China Huajun Group (HKSE:00377) Business Description

Traded in Other Exchanges
N/A
Address
6-8 Harbour Road, Suites 903-905, 9th Floor, Shui On Centre, Wan Chai, Hong Kong, HKG
China Huajun Group Ltd is an investment holding company. It operates in five segments: Printing, Trading & Logistics, Property Development & Investments, Solar Photovoltaic, and Financial Services. The majority of its revenue comes from the Trading & logistics segment, which is involved in trading, logistics, and supply chain management. Its geographical segments are China, the United States, Hong Kong, European countries, and other countries, of which the United States accounts for the vast majority of its revenue.
Executives
Bao Le 2101 Beneficial owner
Meng Guang Bao 2101 Beneficial owner
Huajun Group Limited 2101 Beneficial owner
Ou Ke Ji Tuan Gu Fen You Xian Gong Si 2101 Beneficial owner
Ouke Group Holdings Limited 2101 Beneficial owner
China Huajun Group Limtied 2201 Interest of corporation controlled by you
Cefc (hk) Financial Holdings Company 2201 Interest of corporation controlled by you
Cefc (hk) Financial Holdings Limited 2201 Interest of corporation controlled by you
Hua Zhi Investment Limited 2201 Interest of corporation controlled by you
Li Gang 2201 Interest of corporation controlled by you

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