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Frontier Services Group (HKSE:00500) Gross Margin % : 17.03% (As of Dec. 2023)


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What is Frontier Services Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Frontier Services Group's Gross Profit for the six months ended in Dec. 2023 was HK$65.4 Mil. Frontier Services Group's Revenue for the six months ended in Dec. 2023 was HK$383.8 Mil. Therefore, Frontier Services Group's Gross Margin % for the quarter that ended in Dec. 2023 was 17.03%.


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

HKSE:00500' s Gross Margin % Range Over the Past 10 Years
Min: -76.48   Med: -16.49   Max: 44.77
Current: 12.71


During the past 13 years, the highest Gross Margin % of Frontier Services Group was 44.77%. The lowest was -76.48%. And the median was -16.49%.

HKSE:00500's Gross Margin % is ranked worse than
70.89% of 948 companies
in the Transportation industry
Industry Median: 20.01 vs HKSE:00500: 12.71

Frontier Services Group had a gross margin of 17.03% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Frontier Services Group was 0.00% per year.


Frontier Services Group Gross Margin % Historical Data

The historical data trend for Frontier Services Group'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.

Frontier Services Group Gross Margin % Chart

Frontier Services Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -24.69 -21.24 -1.23 4.79 12.71

Frontier Services Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.01 -0.07 10.11 8.85 17.03

Competitive Comparison of Frontier Services Group's Gross Margin %

For the Integrated Freight & Logistics subindustry, Frontier Services Group'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.


Frontier Services Group's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Frontier Services Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Frontier Services Group's Gross Margin % falls into.



Frontier Services Group Gross Margin % Calculation

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

Frontier Services Group'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 )
=103.3 / 812.918
=(Revenue - Cost of Goods Sold) / Revenue
=(812.918 - 709.574) / 812.918
=12.71 %

Frontier Services Group'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 )
=65.4 / 383.778
=(Revenue - Cost of Goods Sold) / Revenue
=(383.778 - 318.407) / 383.778
=17.03 %

* 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.


Frontier Services Group  (HKSE:00500) 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

Frontier Services Group had a gross margin of 17.03% for the quarter that ended in Dec. 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.


Frontier Services Group Gross Margin % Related Terms

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


Frontier Services Group (HKSE:00500) Business Description

Traded in Other Exchanges
Address
16 Harcourt Road, Suite 3902, 39th Floor, Far East Finance Centre, Admiralty, Hong Kong, HKG
Frontier Services Group Ltd is an investment holding company. The Group is principally engaged in the provision of aviation, logistics, security, insurance and infrastructure related services and the provision of online financial market information. It operates in three business segments that are Aviation and Logistics Business; Financial Market Information Business, which provides online financial market information; and Security, Insurance, and Infrastructure Business. The Aviation and Logistics Business segment generates maximum revenue for the company. Its geographical segments are Africa, Europe, Mainland China, Hong Kong, and South-East Asia & Middle-East.
Executives
Li Xiaopeng
Fortune Hero Investments Limited 2101 Beneficial owner
Wang Wei 2201 Interest of corporation controlled by you
Shen Zhen Ming De Kong Gu Fa Zhan You Xian Gong Si 2201 Interest of corporation controlled by you
Shen Zhen Shun Feng Tai Sen Kong Gu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Shun Feng Kong Gu Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Citic Capital Holdings Limited 2201 Interest of corporation controlled by you
Ko Chun Shun, Johnson 2201 Interest of corporation controlled by you
Citic Group Corporation 2201 Interest of corporation controlled by you
Citic Limited 2201 Interest of corporation controlled by you
Rich Hill Capital Limited 2101 Beneficial owner
China Taiping Insurance Holdings Company Limited 2201 Interest of corporation controlled by you
Taiping Financial Holdings Company Limited 2201 Interest of corporation controlled by you
Taiping Trustees Limited 2106 Person having a security interest in shares

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