China Merchants Land (HKSE:00978) Gross Margin % : 10.41% (As of Dec. 2023)

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What is China Merchants Land Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China Merchants Land's Gross Profit for the six months ended in Dec. 2023 was HK$2,163 Mil. China Merchants Land's Revenue for the six months ended in Dec. 2023 was HK$20,767 Mil. Therefore, China Merchants Land's Gross Margin % for the quarter that ended in Dec. 2023 was 10.41%.

Warning Sign:

China Merchants Land Ltd gross margin has been in long-term decline. The average rate of decline per year is -19.3%.

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

HKSE:00978' s Gross Margin % Range Over the Past 10 Years
Min: 13.4 Med: 26.38 Max: 33.36
Current: 13.44

During the past 13 years, the highest Gross Margin % of China Merchants Land was 33.36%. The lowest was 13.40%. And the median was 26.38%.

HKSE:00978's Gross Margin % is ranked worse than
85.9% of 1653 companies
in the Real Estate industry
Industry Median: 36.78 vs HKSE:00978: 13.44

China Merchants Land had a gross margin of 10.41% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China Merchants Land was -19.30% per year.

China Merchants Land Gross Margin % Historical Data

The historical data trend for China Merchants Land'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.

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China Merchants Land Gross Margin % Chart

China Merchants Land Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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32.54

24.90

18.49

13.40

13.44

China Merchants Land 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															17.92	15.65	11.48	19.29	10.41

Competitive Comparison of China Merchants Land's Gross Margin %

For the Real Estate - Diversified subindustry, China Merchants Land'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.

China Merchants Land's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, China Merchants Land's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China Merchants Land's Gross Margin % falls into.

China Merchants Land Gross Margin % Calculation

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

China Merchants Land'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 )
	=	4233.5	/	31501.756
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(31501.756 - 27268.238)	/	31501.756
	=	13.44 %

China Merchants Land'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 )
	=	2162.9	/	20767.086
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(20767.086 - 18604.208)	/	20767.086
	=	10.41 %

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.

China Merchants Land (HKSE:00978) 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

China Merchants Land had a gross margin of 10.41% 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.

China Merchants Land Gross Margin % Related Terms

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China Merchants Land (HKSE:00978) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » China Merchants Land Ltd (HKSE:00978) » Definitions » Gross Margin %

Traded in Other Exchanges

TNY1:Germany

Address

Nos. 168-200 Connaught Road, Room 2603 to 2606, 26th Floor, China Merchants Tower, Shun Tak Centre, Central, Hong Kong, HKG

Website

http://www.cmland.hk

China Merchants Land Ltd is an investment holding company that operates through two segments. The properties segment, which generates almost all the company's sales, is engaged in real estate development and leasing, and the Asset Management segment. Asset management segment includes office premises and shopping malls. The company operates primarily in Mainland China.

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