Ares Asia (HKSE:00645) Gross Margin % : 0.54% (As of Sep. 2023)

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What is Ares Asia Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ares Asia's Gross Profit for the six months ended in Sep. 2023 was HK$1.2 Mil. Ares Asia's Revenue for the six months ended in Sep. 2023 was HK$218.7 Mil. Therefore, Ares Asia's Gross Margin % for the quarter that ended in Sep. 2023 was 0.54%.

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

HKSE:00645' s Gross Margin % Range Over the Past 10 Years
Min: 0.2 Med: 0.9 Max: 2.02
Current: 1.11

During the past 13 years, the highest Gross Margin % of Ares Asia was 2.02%. The lowest was 0.20%. And the median was 0.90%.

HKSE:00645's Gross Margin % is ranked worse than
94.31% of 123 companies
in the Other Energy Sources industry
Industry Median: 28.93 vs HKSE:00645: 1.11

Ares Asia had a gross margin of 0.54% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ares Asia was 31.60% per year.

Ares Asia Gross Margin % Historical Data

The historical data trend for Ares Asia'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.

Ares Asia Gross Margin % Chart

Ares Asia Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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0.64

1.28

0.74

0.40

2.02

Ares Asia 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															0.42	0.35	2.99	1.56	0.54

Competitive Comparison of Ares Asia's Gross Margin %

For the Thermal Coal subindustry, Ares Asia'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.

Ares Asia's Gross Margin % Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, Ares Asia's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ares Asia's Gross Margin % falls into.

Ares Asia Gross Margin % Calculation

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

Ares Asia'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 )
	=	8.4	/	412.795
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(412.795 - 404.436)	/	412.795
	=	2.02 %

Ares Asia'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 )
	=	1.2	/	218.65
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(218.65 - 217.476)	/	218.65
	=	0.54 %

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.

Ares Asia (HKSE:00645) 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

Ares Asia had a gross margin of 0.54% 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.

Ares Asia Gross Margin % Related Terms

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Ares Asia (HKSE:00645) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Other Energy Sources » Ares Asia Ltd (HKSE:00645) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

1 Austin Road West, Unit No. 9608, Level 96, International Commerce Centre, Kowloon, Hong Kong, HKG

Website

http://www.aresasialtd.com

Ares Asia Ltd is an investment holding company. The group is principally engaged in the business of coal trading, entailing the selling of coal purchased from various countries to Mainland China and other commodities trading, which encompasses supply chain management and risk management service. Its business falls under the primary segment of Coal and other trading. Geographically, the group has a business presence in Mainland China, Hong Kong, and other countries, of which maximum revenue is derived from Mainland China.

Executives

Reignwood International Holdings Company Limited	2101 Beneficial owner
Ruayrungruang Chanchai	2201 Interest of corporation controlled by you

Ares Asia (HKSE:00645) Headlines

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