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Viva Biotech Holdings (HKSE:01873) Operating Margin % : 9.90% (As of Dec. 2023)


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What is Viva Biotech Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Viva Biotech Holdings's Operating Income for the six months ended in Dec. 2023 was HK$110 Mil. Viva Biotech Holdings's Revenue for the six months ended in Dec. 2023 was HK$1,108 Mil. Therefore, Viva Biotech Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was 9.90%.

Warning Sign:

Viva Biotech Holdings operating margin has been in a 5-year decline. The average rate of decline per year is -4%.

The historical rank and industry rank for Viva Biotech Holdings's Operating Margin % or its related term are showing as below:

HKSE:01873' s Operating Margin % Range Over the Past 10 Years
Min: 11.88   Med: 14.01   Max: 38.74
Current: 11.88


HKSE:01873's Operating Margin % is ranked better than
84.57% of 1024 companies
in the Biotechnology industry
Industry Median: -155.555 vs HKSE:01873: 11.88

Viva Biotech Holdings's 5-Year Average Operating Margin % Growth Rate was -4.00% per year.

Viva Biotech Holdings's Operating Income for the six months ended in Dec. 2023 was HK$110 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$280 Mil.


Viva Biotech Holdings Operating Margin % Historical Data

The historical data trend for Viva Biotech Holdings'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.

Viva Biotech Holdings Operating Margin % Chart

Viva Biotech Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial 13.62 17.94 12.82 13.11 11.88

Viva Biotech Holdings Semi-Annual Data
Dec16 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 11.47 11.82 14.23 13.64 9.90

Competitive Comparison of Viva Biotech Holdings's Operating Margin %

For the Biotechnology subindustry, Viva Biotech Holdings'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.


Viva Biotech Holdings's Operating Margin % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Viva Biotech Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Viva Biotech Holdings's Operating Margin % falls into.



Viva Biotech Holdings 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.

Viva Biotech Holdings's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=280.144 / 2357.726
=11.88 %

Viva Biotech Holdings's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=109.775 / 1108.429
=9.90 %

* 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.


Viva Biotech Holdings  (HKSE:01873) 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.


Viva Biotech Holdings Operating Margin % Related Terms

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Viva Biotech Holdings (HKSE:01873) Business Description

Traded in Other Exchanges
Address
735 Ziping Road, Pudong New District, Zhoupu Town, Shanghai, CHN, 201318
Viva Biotech Holdings is an integrated drug discovery platform. The company's operating segment includes Drug discovery services and Contract Development Manufacture Organisation (CDMO) and commercialisation services. It generates maximum revenue from the Contract Development Manufacture Organisation (CDMO) and commercialisation services segment. The Contract Development Manufacture Organisation ("CDMO") and commercialisation services segment includes contract development and manufacturing services for small molecule APIs and intermediates and trading of APIs, intermediates and formulations.
Executives
Mao Chen Cheney 2101 Beneficial owner
Wu John Jiong 2201 Interest of corporation controlled by you
Fenghe Harvest Ltd 2101 Beneficial owner
Jpmorgan Chase & Co. 2201 Interest of corporation controlled by you
Mao Jun 2501 Other
Temasek Holdings (private) Limited 2201 Interest of corporation controlled by you
Zhou Min 2202 Interest of your spouse
Intertrust (singapore) Ltd. 2301 Trustee
Z&m International Holdings Limited 2201 Interest of corporation controlled by you
Zhang And Sons Limited 2101 Beneficial owner

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