Herald Holdings (HKSE:00114) Gross Margin % : 25.40% (As of Sep. 2023)

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What is Herald Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Herald Holdings's Gross Profit for the six months ended in Sep. 2023 was HK$103.3 Mil. Herald Holdings's Revenue for the six months ended in Sep. 2023 was HK$406.8 Mil. Therefore, Herald Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 25.40%.

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

HKSE:00114' s Gross Margin % Range Over the Past 10 Years
Min: 10.21 Med: 21.7 Max: 25.56
Current: 25.56

During the past 13 years, the highest Gross Margin % of Herald Holdings was 25.56%. The lowest was 10.21%. And the median was 21.70%.

HKSE:00114's Gross Margin % is ranked worse than
77.3% of 771 companies
in the Travel & Leisure industry
Industry Median: 43.25 vs HKSE:00114: 25.56

Herald Holdings had a gross margin of 25.40% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Herald Holdings was -0.70% per year.

Herald Holdings Gross Margin % Historical Data

The historical data trend for Herald 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.

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Herald Holdings Gross Margin % Chart

Herald Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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14.73

21.14

20.92

10.21

23.73

Herald 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															10.46	9.98	22.63	25.71	25.40

Competitive Comparison of Herald Holdings's Gross Margin %

For the Leisure subindustry, Herald 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.

Herald Holdings's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Herald Holdings's Gross Margin % distribution charts can be found below:

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

Herald Holdings Gross Margin % Calculation

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

Herald 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 )
	=	299.8	/	1262.978
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1262.978 - 963.211)	/	1262.978
	=	23.73 %

Herald 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 )
	=	103.3	/	406.783
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(406.783 - 303.459)	/	406.783
	=	25.40 %

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.

Herald Holdings (HKSE:00114) 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

Herald Holdings had a gross margin of 25.40% 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.

Herald Holdings Gross Margin % Related Terms

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

Herald Holdings (HKSE:00114) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Herald Holdings Ltd (HKSE:00114) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

89 Queensway, Lippo Centre, Room 3110, 31 Floor, Tower Two, Hong Kong, HKG

Website

http://www.heraldgroup.com.hk

Herald Holdings Ltd is an investment holding company. It operates in the segments of Toys, Computer Products, Timepieces, Investments, and Others. The group derives majority revenue from the Toys segment which involves the manufacturing of wide range of toys including action figures, electronic radio-controlled toy cars and boats, electronic games, and pre-school toys. The company along with its subsidiaries is also engaged in the manufacture, sale, and distribution of computer products, housewares, clocks, watches, and electronic and gift products. The company has the majority of its customers based in Hong Kong, North America, the United Kingdom, Europe, Asia, Mainland China, and Others. It generates the highest revenue from the North America region.

Herald Holdings (HKSE:00114) Headlines

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