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China South City Holdings (HKSE:01668) Gross Margin % : 17.76% (As of Sep. 2023)


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What is China South City Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China South City Holdings's Gross Profit for the six months ended in Sep. 2023 was HK$447 Mil. China South City Holdings's Revenue for the six months ended in Sep. 2023 was HK$2,516 Mil. Therefore, China South City Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 17.76%.

Warning Sign:

China South City Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.5%.


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

HKSE:01668' s Gross Margin % Range Over the Past 10 Years
Min: 10.2   Med: 45.26   Max: 55.78
Current: 10.2


During the past 13 years, the highest Gross Margin % of China South City Holdings was 55.78%. The lowest was 10.20%. And the median was 45.26%.

HKSE:01668's Gross Margin % is ranked worse than
89.9% of 1654 companies
in the Real Estate industry
Industry Median: 36.83 vs HKSE:01668: 10.20

China South City Holdings had a gross margin of 17.76% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China South City Holdings was -5.50% per year.


China South City Holdings Gross Margin % Historical Data

The historical data trend for China South City 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.

China South City Holdings Gross Margin % Chart

China South City Holdings Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.26 43.21 45.74 43.72 29.61

China South City 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 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 36.62 17.09 30.94 -6.00 17.76

Competitive Comparison of China South City Holdings's Gross Margin %

For the Real Estate - Development subindustry, China South City 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.


China South City Holdings's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, China South City Holdings's Gross Margin % distribution charts can be found below:

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



China South City Holdings Gross Margin % Calculation

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

China South City Holdings's Gross Margin for the fiscal year that ended in Mar. 2022 is calculated as

Gross Margin % (A: Mar. 2022 )=Gross Profit (A: Mar. 2022 ) / Revenue (A: Mar. 2022 )
=2847.6 / 9615.923
=(Revenue - Cost of Goods Sold) / Revenue
=(9615.923 - 6768.284) / 9615.923
=29.61 %

China South City 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 )
=446.9 / 2516.175
=(Revenue - Cost of Goods Sold) / Revenue
=(2516.175 - 2069.312) / 2516.175
=17.76 %

* 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 South City Holdings  (HKSE:01668) 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 South City Holdings had a gross margin of 17.76% for the quarter that ended in Sep. 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 South City Holdings Gross Margin % Related Terms

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China South City Holdings (HKSE:01668) Business Description

Traded in Other Exchanges
Address
The Gateway, 15 Canton Road, Suite 3306-08, 33rd Floor, Tower 5, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
China South City Holdings Ltd develops and operates large-scale integrated logistics and trade centers in China. It operates in three segments that include property development, property investment and management, and others. The majority of the revenue is generated from the property development segments that include the development of integrated logistics and trade centers and residential and commercial ancillary facilities. The majority of its operations are conducted in the People's Republic of China.

China South City Holdings (HKSE:01668) Headlines

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