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Justin Allen Holdings (HKSE:01425) Gross Margin % : 34.04% (As of Dec. 2023)


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What is Justin Allen Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Justin Allen Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$256 Mil. Justin Allen Holdings's Revenue for the six months ended in Dec. 2023 was HK$751 Mil. Therefore, Justin Allen Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 34.04%.


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

HKSE:01425' s Gross Margin % Range Over the Past 10 Years
Min: 25.15   Med: 27.99   Max: 31.88
Current: 31.88


During the past 8 years, the highest Gross Margin % of Justin Allen Holdings was 31.88%. The lowest was 25.15%. And the median was 27.99%.

HKSE:01425's Gross Margin % is ranked better than
59.81% of 1030 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.685 vs HKSE:01425: 31.88

Justin Allen Holdings had a gross margin of 34.04% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Justin Allen Holdings was 2.30% per year.


Justin Allen Holdings Gross Margin % Historical Data

The historical data trend for Justin Allen 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.

Justin Allen Holdings Gross Margin % Chart

Justin Allen Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 28.83 28.24 26.27 30.58 31.88

Justin Allen Holdings Semi-Annual Data
Dec16 Dec17 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 27.23 25.63 33.75 27.41 34.04

Competitive Comparison of Justin Allen Holdings's Gross Margin %

For the Apparel Manufacturing subindustry, Justin Allen 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.


Justin Allen Holdings's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Justin Allen Holdings's Gross Margin % distribution charts can be found below:

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



Justin Allen Holdings Gross Margin % Calculation

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

Justin Allen Holdings'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 )
=355.2 / 1114.213
=(Revenue - Cost of Goods Sold) / Revenue
=(1114.213 - 759.026) / 1114.213
=31.88 %

Justin Allen Holdings'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 )
=255.6 / 750.753
=(Revenue - Cost of Goods Sold) / Revenue
=(750.753 - 495.194) / 750.753
=34.04 %

* 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.


Justin Allen Holdings  (HKSE:01425) 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

Justin Allen Holdings had a gross margin of 34.04% for the quarter that ended in Dec. 2023 => Competition eroding margins


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.


Justin Allen Holdings Gross Margin % Related Terms

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Justin Allen Holdings (HKSE:01425) Business Description

Traded in Other Exchanges
N/A
Address
483A Castle Peak Road, 31st Floor, Excel Centre, Cheung Sha Wan, Hong Kong, HKG
Justin Allen Holdings Ltd engages in OEM garment manufacturing specializing in the production of sleepwear and loungewear products. The company offers one-stop apparel solutions comprising raw materials sourcing and greige fabric production, fabric design, and development, as well as fashion design. It derives revenue from manufacturing and sales of sleepwear products, loungewear products, and greige fabric. Its operations are spread across the United States of America, United Kingdom, Ireland, Canada, The PRC, Spain, and Cambodia.
Executives
Strategic King Holdings Limited 2101 Beneficial owner
Tam Kwok Pui 2201 Interest of corporation controlled by you
Yeung Suk Foon Paulina 2202 Interest of your spouse

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