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E. Bon Holdings (HKSE:00599) Gross Margin % : 43.90% (As of Sep. 2023)


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What is E. Bon Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. E. Bon Holdings's Gross Profit for the six months ended in Sep. 2023 was HK$93.9 Mil. E. Bon Holdings's Revenue for the six months ended in Sep. 2023 was HK$214.0 Mil. Therefore, E. Bon Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 43.90%.

Warning Sign:

E. Bon Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


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

HKSE:00599' s Gross Margin % Range Over the Past 10 Years
Min: 35.82   Med: 39.64   Max: 42.4
Current: 41.31


During the past 13 years, the highest Gross Margin % of E. Bon Holdings was 42.40%. The lowest was 35.82%. And the median was 39.64%.

HKSE:00599's Gross Margin % is ranked better than
57.76% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.675 vs HKSE:00599: 41.31

E. Bon Holdings had a gross margin of 43.90% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for E. Bon Holdings was -1.10% per year.


E. Bon Holdings Gross Margin % Historical Data

The historical data trend for E. Bon 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.

E. Bon Holdings Gross Margin % Chart

E. Bon Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.06 40.50 37.54 37.10 39.71

E. Bon Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.94 39.35 40.58 38.80 43.90

Competitive Comparison of E. Bon Holdings's Gross Margin %

For the Home Improvement Retail subindustry, E. Bon 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.


E. Bon Holdings's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, E. Bon Holdings's Gross Margin % distribution charts can be found below:

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



E. Bon Holdings Gross Margin % Calculation

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

E. Bon 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 )
=180.6 / 454.764
=(Revenue - Cost of Goods Sold) / Revenue
=(454.764 - 274.158) / 454.764
=39.71 %

E. Bon 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 )
=93.9 / 213.973
=(Revenue - Cost of Goods Sold) / Revenue
=(213.973 - 120.047) / 213.973
=43.90 %

* 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.


E. Bon Holdings  (HKSE:00599) 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

E. Bon Holdings had a gross margin of 43.90% for the quarter that ended in Sep. 2023 => 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.


E. Bon Holdings Gross Margin % Related Terms

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


E. Bon Holdings (HKSE:00599) Business Description

Traded in Other Exchanges
N/A
Address
33 Leighton Road, 16th - 18th Floors, First Commercial Building, Causeway Bay, Hong Kong, HKG
E. Bon Holdings Ltd is an investment holding company. The company through its subsidiaries is engaged in importing, wholesale, and installation of architectural builder's hardware, bathroom, kitchen collections, and furniture. Its reportable operating segments are Architectural builders' hardware and Kitchen collection and furniture. The group generates a vast majority of the revenue from Hong Kong.
Executives
Universal Star Group Ltd. 2101 Beneficial owner
Happy Voice Ltd. 2101 Beneficial owner
New Happy Times Ltd. 2101 Beneficial owner
Fast Way Management Limited 2101 Beneficial owner
Tse Hon Kit Kevin 2201 Interest of corporation controlled by you
Tse Sun Wai Albert 2201 Interest of corporation controlled by you
Tse Sun Po Tony 2201 Interest of corporation controlled by you
Tse Sun Fat Henry 2201 Interest of corporation controlled by you
Lim Mee Hwa 2101 Beneficial owner
Yeo Seng Chong 2101 Beneficial owner

E. Bon Holdings (HKSE:00599) Headlines

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