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Telecom Digital Holdings (HKSE:06033) Gross Margin % : 38.64% (As of Sep. 2023)


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What is Telecom Digital Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Telecom Digital Holdings's Gross Profit for the six months ended in Sep. 2023 was HK$248 Mil. Telecom Digital Holdings's Revenue for the six months ended in Sep. 2023 was HK$642 Mil. Therefore, Telecom Digital Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 38.64%.

Warning Sign:

Telecom Digital Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.1%.


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

HKSE:06033' s Gross Margin % Range Over the Past 10 Years
Min: 27.84   Med: 38.6   Max: 48.08
Current: 32.18


During the past 11 years, the highest Gross Margin % of Telecom Digital Holdings was 48.08%. The lowest was 27.84%. And the median was 38.60%.

HKSE:06033's Gross Margin % is ranked worse than
59.12% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.74 vs HKSE:06033: 32.18

Telecom Digital Holdings had a gross margin of 38.64% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Telecom Digital Holdings was -6.10% per year.


Telecom Digital Holdings Gross Margin % Historical Data

The historical data trend for Telecom Digital 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.

Telecom Digital Holdings Gross Margin % Chart

Telecom Digital Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.60 47.65 48.08 34.90 32.50

Telecom Digital Holdings Semi-Annual Data
Mar14 Sep14 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 Premium Member Only Premium Member Only 38.37 32.06 38.99 27.33 38.64

Competitive Comparison of Telecom Digital Holdings's Gross Margin %

For the Specialty Retail subindustry, Telecom Digital 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.


Telecom Digital Holdings's Gross Margin % Distribution in the Retail - Cyclical Industry

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

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



Telecom Digital Holdings Gross Margin % Calculation

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

Telecom Digital Holdings's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=499 / 1535.452
=(Revenue - Cost of Goods Sold) / Revenue
=(1535.452 - 1036.415) / 1535.452
=32.50 %

Telecom Digital 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 )
=248 / 641.846
=(Revenue - Cost of Goods Sold) / Revenue
=(641.846 - 393.849) / 641.846
=38.64 %

* 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.


Telecom Digital Holdings  (HKSE:06033) 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

Telecom Digital Holdings had a gross margin of 38.64% for the quarter that ended in Sep. 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.


Telecom Digital Holdings Gross Margin % Related Terms

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


Telecom Digital Holdings (HKSE:06033) Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Sheung Yuet Road, 19th Floor, YHC Tower, Kowloon Bay, Kowloon, Hong Kong, HKG
Telecom Digital Holdings Ltd is an investment holding company. The company is principally engaged in telecommunications and related business. The company's operating segment includes Product business; Operation Services; Properties Investment and other segments. The company generates maximum revenue from the Product business segment which is involved in the sales of electronic devices, other consumer goods, and related services.

Telecom Digital Holdings (HKSE:06033) Headlines

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