Edensoft Holdings (HKSE:01147) Gross Margin % : 13.51% (As of Dec. 2023)

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What is Edensoft Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Edensoft Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$50.4 Mil. Edensoft Holdings's Revenue for the six months ended in Dec. 2023 was HK$373.1 Mil. Therefore, Edensoft Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 13.51%.

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

HKSE:01147' s Gross Margin % Range Over the Past 10 Years
Min: 10.32 Med: 11.87 Max: 12.74
Current: 12.16

During the past 8 years, the highest Gross Margin % of Edensoft Holdings was 12.74%. The lowest was 10.32%. And the median was 11.87%.

HKSE:01147's Gross Margin % is ranked worse than
90.73% of 2631 companies
in the Software industry
Industry Median: 41.74 vs HKSE:01147: 12.16

Edensoft Holdings had a gross margin of 13.51% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

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

Edensoft Holdings Gross Margin % Historical Data

The historical data trend for Edensoft 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.

* Premium members only.

Edensoft Holdings Gross Margin % Chart

Edensoft Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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10.51

10.32

12.74

11.11

12.16

Edensoft Holdings Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial								14.89	12.14	9.82	11.19	13.51

Competitive Comparison of Edensoft Holdings's Gross Margin %

For the Information Technology Services subindustry, Edensoft 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.

Edensoft Holdings's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Edensoft Holdings's Gross Margin % distribution charts can be found below:

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

Edensoft Holdings Gross Margin % Calculation

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

Edensoft 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 )
	=	108.4	/	891.785
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(891.785 - 783.353)	/	891.785
	=	12.16 %

Edensoft 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 )
	=	50.4	/	373.114
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(373.114 - 322.697)	/	373.114
	=	13.51 %

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.

Edensoft Holdings (HKSE:01147) 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

Edensoft Holdings had a gross margin of 13.51% for the quarter that ended in Dec. 2023 => No sustainable 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.

Edensoft Holdings Gross Margin % Related Terms

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Edensoft Holdings (HKSE:01147) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Edensoft Holdings Ltd (HKSE:01147) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Hua Fu Street, 1006 Shennan Road, West, 2nd Floor, Building A, Futian Technology Square, Shenzhen International Innovation Center, Futian District, Shenzhen, CHN

Website

https://www.edensoft.com.cn

Edensoft Holdings Ltd is engaged in provision of IT infrastructure services, IT implementation and supporting services and cloud services in the PRC. Its segment includes IT infrastructure services; IT implementation and supporting services; and Cloud services. It derives key revenue from the IT infrastructure services segment that assess customers' needs and their existing IT environment and providing IT infrastructure services by advising them on the suitable hardware and software products that their IT environment would require, and procuring the relevant hardware and software products from IT products vendors and installing these IT products in customers' IT environment. It operates in Mainland China and Hong Kong, of which prime revenue is derived from Mainland China.

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