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China Wantian Holdings (HKSE:01854) Gross Margin % : 16.09% (As of Sep. 2023)


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What is China Wantian Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China Wantian Holdings's Gross Profit for the six months ended in Sep. 2023 was HK$20.7 Mil. China Wantian Holdings's Revenue for the six months ended in Sep. 2023 was HK$128.7 Mil. Therefore, China Wantian Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 16.09%.

Warning Sign:

China Wantian Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -12.3%.


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

HKSE:01854' s Gross Margin % Range Over the Past 10 Years
Min: 12.42   Med: 15.09   Max: 25.21
Current: 15.91


During the past 8 years, the highest Gross Margin % of China Wantian Holdings was 25.21%. The lowest was 12.42%. And the median was 15.09%.

HKSE:01854's Gross Margin % is ranked worse than
73.46% of 309 companies
in the Retail - Defensive industry
Industry Median: 22.85 vs HKSE:01854: 15.91

China Wantian Holdings had a gross margin of 16.09% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China Wantian Holdings was -12.30% per year.


China Wantian Holdings Gross Margin % Historical Data

The historical data trend for China Wantian 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.

China Wantian Holdings Gross Margin % Chart

China Wantian Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Gross Margin %
Get a 7-Day Free Trial 25.21 23.64 12.48 12.42 14.68

China Wantian Holdings Semi-Annual Data
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.37 12.74 21.67 15.73 16.09

Competitive Comparison of China Wantian Holdings's Gross Margin %

For the Food Distribution subindustry, China Wantian 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.


China Wantian Holdings's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, China Wantian Holdings's Gross Margin % distribution charts can be found below:

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



China Wantian Holdings Gross Margin % Calculation

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

China Wantian Holdings's Gross Margin for the fiscal year that ended in Mar. 2022 is calculated as

Gross Margin % (A: Mar. 2022 )=Gross Profit (A: Mar. 2022 ) / Revenue (A: Mar. 2022 )
=18.7 / 127.674
=(Revenue - Cost of Goods Sold) / Revenue
=(127.674 - 108.929) / 127.674
=14.68 %

China Wantian Holdings'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 )
=20.7 / 128.734
=(Revenue - Cost of Goods Sold) / Revenue
=(128.734 - 108.025) / 128.734
=16.09 %

* 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.


China Wantian Holdings  (HKSE:01854) 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 Wantian Holdings had a gross margin of 16.09% 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.


China Wantian Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of China Wantian Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


China Wantian Holdings (HKSE:01854) Business Description

Traded in Other Exchanges
N/A
Address
Exchange Tower 33 Wang Chiu Road, Suite 2106A, 21/F, Kowloon Bay, Hong Kong, HKG
China Wantian Holdings Ltd is engaged in the provision of vegetables and fruits. It provides procurement, selection, packaging, treating, processing and distribution of vegetables and fruit ingredients. The company offers leaf vegetables, melon and fruit vegetables, root and rhizome vegetables, herbs and spices, mushrooms, fruits, processed fruits and vegetables, and others. The group's business falls under the primary segment of Sourcing, processing and supplying food ingredients to foodservice operators in Hong Kong. The Group has three reportable segments, namely green food supply; green catering; and environmental protection and technology.
Executives
Yap Yuk Kiew
Yek Hon Su
Yap Su Chai
Yap Siew Ngoh
Yap Siew Chow
Yap Kong Meng
Yap Hong Leng
Yap Hong Kek
Yap Hong Akiw
Yap Global Investment Limited
Yap Fong Kee
Wise Global Holding Limited
Leong Kwai Ho
Hooy Siew Kuen
Hooy Say Kai

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