Design Capital (HKSE:01545) Gross Margin % : 34.29% (As of Dec. 2023)

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What is Design Capital Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Design Capital's Gross Profit for the six months ended in Dec. 2023 was HK$86.8 Mil. Design Capital's Revenue for the six months ended in Dec. 2023 was HK$253.0 Mil. Therefore, Design Capital's Gross Margin % for the quarter that ended in Dec. 2023 was 34.29%.

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

HKSE:01545' s Gross Margin % Range Over the Past 10 Years
Min: 28.47 Med: 30.69 Max: 33.66
Current: 30.86

During the past 8 years, the highest Gross Margin % of Design Capital was 33.66%. The lowest was 28.47%. And the median was 30.69%.

HKSE:01545's Gross Margin % is ranked worse than
60.73% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.51 vs HKSE:01545: 30.86

Design Capital had a gross margin of 34.29% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Design Capital was 0.00% per year.

Design Capital Gross Margin % Historical Data

The historical data trend for Design Capital'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.

Design Capital Gross Margin % Chart

Design Capital Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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30.52

28.47

30.36

29.90

30.85

Design Capital Semi-Annual Data
	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial									31.96	29.53	30.22	27.64	34.29

Competitive Comparison of Design Capital's Gross Margin %

For the Specialty Retail subindustry, Design Capital'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.

Design Capital's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Design Capital's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Design Capital's Gross Margin % falls into.

Design Capital Gross Margin % Calculation

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

Design Capital'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 )
	=	161.9	/	524.753
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(524.753 - 362.876)	/	524.753
	=	30.85 %

Design Capital'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 )
	=	86.8	/	253.043
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(253.043 - 166.262)	/	253.043
	=	34.29 %

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.

Design Capital (HKSE:01545) 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

Design Capital had a gross margin of 34.29% 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.

Design Capital Gross Margin % Related Terms

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Design Capital (HKSE:01545) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Design Capital Ltd (HKSE:01545) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

130 Joo Seng Road, No. 07-05, Singapore, SGP, 368357

Website

https://www.designcapital.sg

Design Capital Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in the segments of Interior design, Furniture sales, U.S. furniture sales, and corporate. Furniture sales include both furniture sales and project sales and U.S. furniture sales. It derives prime revenue from the U.S. furniture sales segment which represents online sales of furniture in the U.S. market. Geographically the group has a business presence in the U.S., Singapore, Malaysia, and Brunei.

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