Homeland Interactive Technology (HKSE:03798) Gross Margin % : 62.53% (As of Dec. 2023)

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What is Homeland Interactive Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Homeland Interactive Technology's Gross Profit for the six months ended in Dec. 2023 was HK$565 Mil. Homeland Interactive Technology's Revenue for the six months ended in Dec. 2023 was HK$904 Mil. Therefore, Homeland Interactive Technology's Gross Margin % for the quarter that ended in Dec. 2023 was 62.53%.

Warning Sign:

Homeland Interactive Technology Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.9%.

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

HKSE:03798' s Gross Margin % Range Over the Past 10 Years
Min: 65.04 Med: 76.6 Max: 82.07
Current: 65.04

During the past 8 years, the highest Gross Margin % of Homeland Interactive Technology was 82.07%. The lowest was 65.04%. And the median was 76.60%.

HKSE:03798's Gross Margin % is ranked better than
54.14% of 519 companies
in the Interactive Media industry
Industry Median: 60.86 vs HKSE:03798: 65.04

Homeland Interactive Technology had a gross margin of 62.53% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Homeland Interactive Technology was -3.90% per year.

Homeland Interactive Technology Gross Margin % Historical Data

The historical data trend for Homeland Interactive Technology'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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Homeland Interactive Technology Gross Margin % Chart

Homeland Interactive Technology Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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78.28

76.69

73.39

65.30

65.04

Homeland Interactive Technology 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									73.23	70.62	59.98	67.21	62.53

Competitive Comparison of Homeland Interactive Technology's Gross Margin %

For the Electronic Gaming & Multimedia subindustry, Homeland Interactive Technology'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.

Homeland Interactive Technology's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Homeland Interactive Technology's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Homeland Interactive Technology's Gross Margin % falls into.

Homeland Interactive Technology Gross Margin % Calculation

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

Homeland Interactive Technology'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 )
	=	1266	/	1946.562
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1946.562 - 680.562)	/	1946.562
	=	65.04 %

Homeland Interactive Technology'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 )
	=	565.1	/	903.669
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(903.669 - 338.606)	/	903.669
	=	62.53 %

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.

Homeland Interactive Technology (HKSE:03798) 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

Homeland Interactive Technology had a gross margin of 62.53% for the quarter that ended in Dec. 2023 => Durable 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.

Homeland Interactive Technology Gross Margin % Related Terms

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Homeland Interactive Technology (HKSE:03798) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Homeland Interactive Technology Ltd (HKSE:03798) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

77 Tainan Road, 7A, 22nd Floor, Huijin Building, Siming District, Xiamen, CHN

Website

https://www.jiaxianghudong.com

Homeland Interactive Technology Ltd is a developer and operator of g localized card and board game developer and operator in the PRC with a special focus on localized Mahjong and poker games. It derives revenue from game development and operation income from sales of virtual tokens and private game room cards. Its operating activities are attributable to a single operating segment focusing on the development and operation of mobile games in the Peoples' Republic of China.

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