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China Tianrui Group Cement Co (HKSE:01252) Gross Margin % : 17.72% (As of Dec. 2023)


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What is China Tianrui Group Cement Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China Tianrui Group Cement Co's Gross Profit for the six months ended in Dec. 2023 was HK$754 Mil. China Tianrui Group Cement Co's Revenue for the six months ended in Dec. 2023 was HK$4,255 Mil. Therefore, China Tianrui Group Cement Co's Gross Margin % for the quarter that ended in Dec. 2023 was 17.72%.

Warning Sign:

China Tianrui Group Cement Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -10.4%.


The historical rank and industry rank for China Tianrui Group Cement Co's Gross Margin % or its related term are showing as below:

HKSE:01252' s Gross Margin % Range Over the Past 10 Years
Min: 20.13   Med: 25.34   Max: 37.29
Current: 20.65


During the past 13 years, the highest Gross Margin % of China Tianrui Group Cement Co was 37.29%. The lowest was 20.13%. And the median was 25.34%.

HKSE:01252's Gross Margin % is ranked worse than
63% of 373 companies
in the Building Materials industry
Industry Median: 24.9 vs HKSE:01252: 20.65

China Tianrui Group Cement Co had a gross margin of 17.72% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China Tianrui Group Cement Co was -10.40% per year.


China Tianrui Group Cement Co Gross Margin % Historical Data

The historical data trend for China Tianrui Group Cement 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.

China Tianrui Group Cement Co Gross Margin % Chart

China Tianrui Group Cement 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 37.29 34.49 25.43 24.55 20.65

China Tianrui Group Cement 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 21.19 27.23 22.06 23.51 17.72

Competitive Comparison of China Tianrui Group Cement Co's Gross Margin %

For the Building Materials subindustry, China Tianrui Group Cement 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.


China Tianrui Group Cement Co's Gross Margin % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, China Tianrui Group Cement Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China Tianrui Group Cement Co's Gross Margin % falls into.



China Tianrui Group Cement Co Gross Margin % Calculation

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

China Tianrui Group Cement 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 )
=1782.1 / 8628.614
=(Revenue - Cost of Goods Sold) / Revenue
=(8628.614 - 6846.495) / 8628.614
=20.65 %

China Tianrui Group Cement 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 )
=753.8 / 4255.075
=(Revenue - Cost of Goods Sold) / Revenue
=(4255.075 - 3501.251) / 4255.075
=17.72 %

* 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.


China Tianrui Group Cement Co  (HKSE:01252) 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

China Tianrui Group Cement Co had a gross margin of 17.72% 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.


China Tianrui Group Cement Co Gross Margin % Related Terms

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China Tianrui Group Cement Co (HKSE:01252) Business Description

Traded in Other Exchanges
Address
No. 63 Guangcheng East Road, Henan Province, Ruzhou, CHN, 467500
China Tianrui Group Cement Co Ltd, along with its subsidiaries, is engaged in the excavation of limestone, the production, and sale of cement and clinker. The company is organized into two geographic segments: Central China and Northeastern China of which Central China contributes the vast majority of total revenue.
Executives
Li Fengluan 2201 Interest of corporation controlled by you
Li Liufa 2201 Interest of corporation controlled by you
Tianrui (international) Holding Company Limited 2201 Interest of corporation controlled by you
Tianrui Group Company Limited 2201 Interest of corporation controlled by you
Yu Kuo Company Limited 2101 Beneficial owner
Carosse Limited 2201 Interest of corporation controlled by you
Holy Eagle Company Limited 2201 Interest of corporation controlled by you
Yu Qi Company Limited 2201 Interest of corporation controlled by you
China Cinda Asset Management Co., Ltd. 2201 Interest of corporation controlled by you
China Huarong (macau) International Company Limited 2201 Interest of corporation controlled by you
Zhong Guo Hua Rong Zi Chan Guan Li Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Zhong Guo Jin Chu Kou Yin Xing 2106 Person having a security interest in shares
Wu Tong Shu Tou Zi Ping Tai You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you
Best Ego Limited 2106 Person having a security interest in shares
China Huarong International Holdings Ltd 2201 Interest of corporation controlled by you

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