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C-Link Squared (HKSE:01463) Gross Margin % : 28.17% (As of Dec. 2023)


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What is C-Link Squared Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. C-Link Squared's Gross Profit for the six months ended in Dec. 2023 was HK$22.6 Mil. C-Link Squared's Revenue for the six months ended in Dec. 2023 was HK$80.3 Mil. Therefore, C-Link Squared's Gross Margin % for the quarter that ended in Dec. 2023 was 28.17%.

Warning Sign:

C-Link Squared Ltd gross margin has been in long-term decline. The average rate of decline per year is -11.7%.


The historical rank and industry rank for C-Link Squared's Gross Margin % or its related term are showing as below:

HKSE:01463' s Gross Margin % Range Over the Past 10 Years
Min: 22.19   Med: 25.03   Max: 41.41
Current: 24.41


During the past 8 years, the highest Gross Margin % of C-Link Squared was 41.41%. The lowest was 22.19%. And the median was 25.03%.

HKSE:01463's Gross Margin % is ranked worse than
67.21% of 985 companies
in the Business Services industry
Industry Median: 34.43 vs HKSE:01463: 24.41

C-Link Squared had a gross margin of 28.17% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for C-Link Squared was -11.70% per year.


C-Link Squared Gross Margin % Historical Data

The historical data trend for C-Link Squared'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.

C-Link Squared Gross Margin % Chart

C-Link Squared Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 41.41 25.01 23.80 22.19 24.43

C-Link Squared 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 24.81 20.45 23.86 20.53 28.17

Competitive Comparison of C-Link Squared's Gross Margin %

For the Specialty Business Services subindustry, C-Link Squared'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.


C-Link Squared's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, C-Link Squared's Gross Margin % distribution charts can be found below:

* The bar in red indicates where C-Link Squared's Gross Margin % falls into.



C-Link Squared Gross Margin % Calculation

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

C-Link Squared'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 )
=38.4 / 157.207
=(Revenue - Cost of Goods Sold) / Revenue
=(157.207 - 118.8) / 157.207
=24.43 %

C-Link Squared'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 )
=22.6 / 80.315
=(Revenue - Cost of Goods Sold) / Revenue
=(80.315 - 57.69) / 80.315
=28.17 %

* 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.


C-Link Squared  (HKSE:01463) 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

C-Link Squared had a gross margin of 28.17% 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.


C-Link Squared Gross Margin % Related Terms

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C-Link Squared (HKSE:01463) Business Description

Traded in Other Exchanges
N/A
Address
No. 1, Persiaran Sungai Buloh, Taman Industri Sungai Buloh, Kota Damansara, Petaling Jaya, SGR, MYS, 47810
C-Link Squared Ltd is an outsourced document management services provider and related software applications and enterprise software solutions, developer. The outsourced document management services include electronic document delivery; document print and mail fulfillment. MICR Cheque print & mail fulfillment; medical ID card print & mail fulfillment; and document imaging and scanning services are also included. The company's Streamline Suite consists of three systems namely Streamline Output Management System (OMS), Streamline Electronic Document Warehouse (EDW), and Streamline Document Management System (DMS). The Group's revenue from customers is derived mainly from its operations in Malaysia and China.
Executives
Zou Cheng 2201 Interest of corporation controlled by you
Le Xian 2201 Interest of corporation controlled by you
Sun Join Venture Management Limited 2101 Beneficial owner
Li Lianbin 2202 Interest of your spouse
Sun Join Capital Investment Limited 2101 Beneficial owner
Wang Yaxian 2101 Beneficial owner
Wan Shifang 2101 Beneficial owner
Wu Xian Long 2101 Beneficial owner
Liao Hui 2101 Beneficial owner

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