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Shenzhen CDL Precision Technology Co (SZSE:300686) Gross Margin % : 4.81% (As of Mar. 2024)


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What is Shenzhen CDL Precision Technology Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shenzhen CDL Precision Technology Co's Gross Profit for the three months ended in Mar. 2024 was ¥16 Mil. Shenzhen CDL Precision Technology Co's Revenue for the three months ended in Mar. 2024 was ¥323 Mil. Therefore, Shenzhen CDL Precision Technology Co's Gross Margin % for the quarter that ended in Mar. 2024 was 4.81%.

Warning Sign:

Shenzhen CDL Precision Technology Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -26.7%.


The historical rank and industry rank for Shenzhen CDL Precision Technology Co's Gross Margin % or its related term are showing as below:

SZSE:300686' s Gross Margin % Range Over the Past 10 Years
Min: 3.31   Med: 22.17   Max: 30.56
Current: 3.96


During the past 13 years, the highest Gross Margin % of Shenzhen CDL Precision Technology Co was 30.56%. The lowest was 3.31%. And the median was 22.17%.

SZSE:300686's Gross Margin % is ranked worse than
93.44% of 2438 companies
in the Hardware industry
Industry Median: 24.395 vs SZSE:300686: 3.96

Shenzhen CDL Precision Technology Co had a gross margin of 4.81% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Shenzhen CDL Precision Technology Co was -26.70% per year.


Shenzhen CDL Precision Technology Co Gross Margin % Historical Data

The historical data trend for Shenzhen CDL Precision Technology Co'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.

Shenzhen CDL Precision Technology Co Gross Margin % Chart

Shenzhen CDL Precision Technology Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.37 21.96 18.10 12.01 3.31

Shenzhen CDL Precision Technology Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 Premium Member Only Premium Member Only 1.84 4.08 -0.16 7.01 4.81

Competitive Comparison of Shenzhen CDL Precision Technology Co's Gross Margin %

For the Electronic Components subindustry, Shenzhen CDL Precision Technology Co'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.


Shenzhen CDL Precision Technology Co's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Shenzhen CDL Precision Technology Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shenzhen CDL Precision Technology Co's Gross Margin % falls into.



Shenzhen CDL Precision Technology Co Gross Margin % Calculation

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

Shenzhen CDL Precision Technology Co'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 )
=45.9 / 1386.514
=(Revenue - Cost of Goods Sold) / Revenue
=(1386.514 - 1340.629) / 1386.514
=3.31 %

Shenzhen CDL Precision Technology Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=15.5 / 323.104
=(Revenue - Cost of Goods Sold) / Revenue
=(323.104 - 307.56) / 323.104
=4.81 %

* 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.


Shenzhen CDL Precision Technology Co  (SZSE:300686) 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

Shenzhen CDL Precision Technology Co had a gross margin of 4.81% for the quarter that ended in Mar. 2024 => 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.


Shenzhen CDL Precision Technology Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Shenzhen CDL Precision Technology Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Shenzhen CDL Precision Technology Co (SZSE:300686) Business Description

Traded in Other Exchanges
N/A
Address
Tianxin Community Jintian Road, Pingshan New District, Shenzhen, CHN, 518118
Shenzhen CDL Precision Technology Co Ltd is engaged in providing external and internal functional devices products for the well-known brand mobile phone, electronic digital products. It mainly produces a functional device for the consumer electronics product, smartphones, tablets and other consumer electronics products. Its Internal functional devices mainly include paste, fixed function devices, buffer, sealing device, conductive and shielding function devices, insulation function devices, thermal conductivity, heat dissipation function devices, strengthening and maintaining strong function devices. Its External functional devices mainly include protective film, dust-proof net, labels, packing box.
Executives
Chen Dan Hua Executives
Zhang Guo Shu Executives
Fang Ji Xin Secretary Dong
Liu Wei Directors, executives
Ke Dong Zhou Independent director
Lai Xiao Xia Supervisors

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