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Kowloon Development Co (HKSE:00034) Operating Margin % : 32.66% (As of Jun. 2023)


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What is Kowloon Development Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kowloon Development Co's Operating Income for the six months ended in Jun. 2023 was HK$417 Mil. Kowloon Development Co's Revenue for the six months ended in Jun. 2023 was HK$1,276 Mil. Therefore, Kowloon Development Co's Operating Margin % for the quarter that ended in Jun. 2023 was 32.66%.

The historical rank and industry rank for Kowloon Development Co's Operating Margin % or its related term are showing as below:

HKSE:00034' s Operating Margin % Range Over the Past 10 Years
Min: -12.03   Med: 29.69   Max: 70.27
Current: 23.11


HKSE:00034's Operating Margin % is ranked better than
65.54% of 1779 companies
in the Real Estate industry
Industry Median: 13.09 vs HKSE:00034: 23.11

Kowloon Development Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Kowloon Development Co's Operating Income for the six months ended in Jun. 2023 was HK$417 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was HK$680 Mil.

Warning Sign:

Kowloon Development Co Ltd has recorded a loss in operating income at least once over the past 3 years.


Kowloon Development Co Operating Margin % Historical Data

The historical data trend for Kowloon Development Co's Operating 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.

Kowloon Development Co Operating Margin % Chart

Kowloon Development Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.06 31.31 -12.03 34.63 23.11

Kowloon Development Co Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Operating 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 -66.16 29.39 35.61 32.66 15.79

Competitive Comparison of Kowloon Development Co's Operating Margin %

For the Real Estate - Development subindustry, Kowloon Development Co's Operating Margin %, along with its competitors' market caps and Operating 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.


Kowloon Development Co's Operating Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Kowloon Development Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kowloon Development Co's Operating Margin % falls into.



Kowloon Development Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Kowloon Development Co's Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=1586.595 / 4581.905
=34.63 %

Kowloon Development Co's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=416.783 / 1275.963
=32.66 %

* 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.


Kowloon Development Co  (HKSE:00034) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Kowloon Development Co Operating Margin % Related Terms

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Kowloon Development Co (HKSE:00034) Business Description

Traded in Other Exchanges
Address
750 Nathan Road, 23rd Floor, Pioneer Centre, Kowloon, Hong Kong, HKG
Kowloon Development Co Ltd is an investment holding company. It operates in three segments: Property development, which includes the development and sale of properties and interests in property development; Property investment segment includes leasing of properties to generate rental income and to gain from the appreciation in the properties' values in the long term; and Other businesses segment, which includes the financial investments, the provision of financial services, the provision of property management services and treasury operations. The company generates the majority of its revenue from the sale of properties. Its geographical segments are Hong Kong, which accounts for the majority of revenue; Mainland China; and Others.
Executives
New Explorer Developments Limited 2201 Interest of corporation controlled by you
Or Wai Sheun 2201 Interest of corporation controlled by you

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