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LFG Investment Holdings (HKSE:03938) Operating Margin % : 36.10% (As of Sep. 2023)


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What is LFG Investment Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. LFG Investment Holdings's Operating Income for the six months ended in Sep. 2023 was HK$22.96 Mil. LFG Investment Holdings's Revenue for the six months ended in Sep. 2023 was HK$63.61 Mil. Therefore, LFG Investment Holdings's Operating Margin % for the quarter that ended in Sep. 2023 was 36.10%.

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

HKSE:03938' s Operating Margin % Range Over the Past 10 Years
Min: -11.08   Med: 50.52   Max: 58.29
Current: 29.1


HKSE:03938's Operating Margin % is ranked better than
65.45% of 657 companies
in the Capital Markets industry
Industry Median: 14.67 vs HKSE:03938: 29.10

LFG Investment Holdings's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

LFG Investment Holdings's Operating Income for the six months ended in Sep. 2023 was HK$22.96 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was HK$25.59 Mil.

Warning Sign:

LFG Investment Holdings Ltd has recorded a loss in operating income at least once over the past 3 years.


LFG Investment Holdings Operating Margin % Historical Data

The historical data trend for LFG Investment 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.

LFG Investment Holdings Operating Margin % Chart

LFG Investment Holdings Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial 50.52 20.83 52.96 24.88 -11.08

LFG Investment Holdings Semi-Annual Data
Mar17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.61 -13.45 -34.72 10.80 36.10

Competitive Comparison of LFG Investment Holdings's Operating Margin %

For the Capital Markets subindustry, LFG Investment 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.


LFG Investment Holdings's Operating Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, LFG Investment Holdings's Operating Margin % distribution charts can be found below:

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



LFG Investment 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.

LFG Investment Holdings's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=-5.195 / 46.873
=-11.08 %

LFG Investment Holdings's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=22.961 / 63.607
=36.10 %

* 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.


LFG Investment Holdings  (HKSE:03938) 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.


LFG Investment Holdings Operating Margin % Related Terms

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LFG Investment Holdings (HKSE:03938) Business Description

Traded in Other Exchanges
N/A
Address
29 Queen’s Road Central, Room 1601, 16th Floor China Building, Hong Kong, HKG
LFG Investment Holdings Ltd is a financial services provider in Hong Kong, that engages in the provision of corporate finance advisory services; underwriting services; securities dealing and brokerage services; securities financing services; and asset management services. The company generates maximum revenue from Corporate finance advisory services.

LFG Investment Holdings (HKSE:03938) Headlines

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