Tongcheng Travel Holdings (HKSE:00780) Gross Margin % : 69.16% (As of Dec. 2023)

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What is Tongcheng Travel Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tongcheng Travel Holdings's Gross Profit for the three months ended in Dec. 2023 was HK$2,379 Mil. Tongcheng Travel Holdings's Revenue for the three months ended in Dec. 2023 was HK$3,439 Mil. Therefore, Tongcheng Travel Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 69.16%.

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

HKSE:00780' s Gross Margin % Range Over the Past 10 Years
Min: 37.66 Med: 69.55 Max: 74.93
Current: 73.46

During the past 9 years, the highest Gross Margin % of Tongcheng Travel Holdings was 74.93%. The lowest was 37.66%. And the median was 69.55%.

HKSE:00780's Gross Margin % is ranked better than
83.85% of 768 companies
in the Travel & Leisure industry
Industry Median: 43.21 vs HKSE:00780: 73.46

Tongcheng Travel Holdings had a gross margin of 69.16% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tongcheng Travel Holdings was 1.40% per year.

Tongcheng Travel Holdings Gross Margin % Historical Data

The historical data trend for Tongcheng Travel 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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Tongcheng Travel Holdings Gross Margin % Chart

Tongcheng Travel Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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68.66

71.40

74.93

72.56

73.45

Tongcheng Travel Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															70.07	75.05	75.46	74.55	69.16

Competitive Comparison of Tongcheng Travel Holdings's Gross Margin %

For the Travel Services subindustry, Tongcheng Travel 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.

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

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

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

Tongcheng Travel Holdings Gross Margin % Calculation

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

Tongcheng Travel Holdings'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 )
	=	9557.7	/	13011.861
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(13011.861 - 3454.19)	/	13011.861
	=	73.45 %

Tongcheng Travel Holdings'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 )
	=	2378.8	/	3439.434
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3439.434 - 1060.68)	/	3439.434
	=	69.16 %

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.

Tongcheng Travel Holdings (HKSE:00780) 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

Tongcheng Travel Holdings had a gross margin of 69.16% for the quarter that ended in Dec. 2023 => Durable competitive advantage

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.

Tongcheng Travel Holdings Gross Margin % Related Terms

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Tongcheng Travel Holdings (HKSE:00780) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Tongcheng Travel Holdings Ltd (HKSE:00780) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TEM:Germany

Address

No. 188, Yuxin Road, Tongcheng Mansion, Suzhou Industrial Park, Jiangsu, CHN

Website

https://www.tongchengir.com

Tongcheng Travel is an online travel agency platform that provides booking services for hotel and ticketing in China. It generated 88% of its revenue from accommodation reservations and transportation ticketing in the third quarter of 2022. The rest came from advertising and in-house software sales. The platform provides both online and offline services in the form of call centers. Tongcheng Travel was formed from the merger of Tongcheng Network and eLong in 2018. It is currently 21.38% owned by Tencent and 20.86% by Trip.com. Tongcheng targets lower-tier cities and as of 2021, 86.7% of its users are from non-first-tier cities in China and 61.7% of new paying users on Weixin were from Tier 3 or below cities in China. The company competes with Trip.com, Alibaba's Fliggy, and Meituan.

Tongcheng Travel Holdings (HKSE:00780) Headlines

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