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Lvgem (China) Real Estate Investment Co (HKSE:00095) Gross Margin % : 20.77% (As of Dec. 2023)


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What is Lvgem (China) Real Estate Investment Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lvgem (China) Real Estate Investment Co's Gross Profit for the six months ended in Dec. 2023 was HK$1,084 Mil. Lvgem (China) Real Estate Investment Co's Revenue for the six months ended in Dec. 2023 was HK$5,220 Mil. Therefore, Lvgem (China) Real Estate Investment Co's Gross Margin % for the quarter that ended in Dec. 2023 was 20.77%.

Warning Sign:

Lvgem (China) Real Estate Investment Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -14%.


The historical rank and industry rank for Lvgem (China) Real Estate Investment Co's Gross Margin % or its related term are showing as below:

HKSE:00095' s Gross Margin % Range Over the Past 10 Years
Min: 25.77   Med: 50.01   Max: 65.3
Current: 25.77


During the past 13 years, the highest Gross Margin % of Lvgem (China) Real Estate Investment Co was 65.30%. The lowest was 25.77%. And the median was 50.01%.

HKSE:00095's Gross Margin % is ranked worse than
66.34% of 1658 companies
in the Real Estate industry
Industry Median: 36.66 vs HKSE:00095: 25.77

Lvgem (China) Real Estate Investment Co had a gross margin of 20.77% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Lvgem (China) Real Estate Investment Co was -14.00% per year.


Lvgem (China) Real Estate Investment Co Gross Margin % Historical Data

The historical data trend for Lvgem (China) Real Estate Investment 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.

Lvgem (China) Real Estate Investment Co Gross Margin % Chart

Lvgem (China) Real Estate Investment 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 64.19 49.14 49.99 44.11 25.77

Lvgem (China) Real Estate Investment Co Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 52.18 41.57 46.17 43.51 20.77

Competitive Comparison of Lvgem (China) Real Estate Investment Co's Gross Margin %

For the Real Estate - Development subindustry, Lvgem (China) Real Estate Investment 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.


Lvgem (China) Real Estate Investment Co's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Lvgem (China) Real Estate Investment Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lvgem (China) Real Estate Investment Co's Gross Margin % falls into.



Lvgem (China) Real Estate Investment Co Gross Margin % Calculation

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

Lvgem (China) Real Estate Investment 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 )
=1724.1 / 6691.332
=(Revenue - Cost of Goods Sold) / Revenue
=(6691.332 - 4967.259) / 6691.332
=25.77 %

Lvgem (China) Real Estate Investment Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1084.1 / 5220.299
=(Revenue - Cost of Goods Sold) / Revenue
=(5220.299 - 4136.206) / 5220.299
=20.77 %

* 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.


Lvgem (China) Real Estate Investment Co  (HKSE:00095) 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

Lvgem (China) Real Estate Investment Co had a gross margin of 20.77% for the quarter that ended in Dec. 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.


Lvgem (China) Real Estate Investment Co Gross Margin % Related Terms

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Lvgem (China) Real Estate Investment Co (HKSE:00095) Business Description

Traded in Other Exchanges
N/A
Address
123 Hoi Bun Road, Unit 2501, NEO, Kwun Tong, Kowloon, Hong Kong, HKG
Lvgem (China) Real Estate Investment Co Ltd is a real estate developer and a commercial property operator. The company's reportable segments are 1) Real estate development and sales segment include sales of properties, 2) Commercial property investment and operations segment include lease of commercial properties, office premises, apartments and car parks, 3) Comprehensive services segment includes hotel operation, property management service and other service income. The majority of its revenue is earned through Real estate development and sales segment. The Company's operations are located in the Mainland China, Hong Kong, the United States of America and Cambodia.
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