Weili Holdings (HKSE:02372) Gross Margin % : 9.74% (As of Dec. 2023)

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What is Weili Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Weili Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$13.6 Mil. Weili Holdings's Revenue for the six months ended in Dec. 2023 was HK$139.3 Mil. Therefore, Weili Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 9.74%.

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

HKSE:02372' s Gross Margin % Range Over the Past 10 Years
Min: 9.22 Med: 21.02 Max: 22.09
Current: 9.22

During the past 5 years, the highest Gross Margin % of Weili Holdings was 22.09%. The lowest was 9.22%. And the median was 21.02%.

HKSE:02372's Gross Margin % is ranked worse than
84.31% of 51 companies
in the Tobacco Products industry
Industry Median: 32.78 vs HKSE:02372: 9.22

Weili Holdings had a gross margin of 9.74% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Weili Holdings was 0.00% per year.

Weili Holdings Gross Margin % Historical Data

The historical data trend for Weili 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.

Weili Holdings Gross Margin % Chart

Weili Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

21.02

22.02

22.09

20.92

9.22

Weili Holdings Semi-Annual Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial			19.05	22.45	17.72	8.18	9.74

Competitive Comparison of Weili Holdings's Gross Margin %

For the Tobacco subindustry, Weili 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.

Weili Holdings's Gross Margin % Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Weili Holdings's Gross Margin % distribution charts can be found below:

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

Weili Holdings Gross Margin % Calculation

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

Weili 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 )
	=	19.2	/	208.851
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(208.851 - 189.604)	/	208.851
	=	9.22 %

Weili 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 )
	=	13.6	/	139.252
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(139.252 - 125.695)	/	139.252
	=	9.74 %

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.

Weili Holdings (HKSE:02372) 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

Weili Holdings had a gross margin of 9.74% 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.

Weili Holdings Gross Margin % Related Terms

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Weili Holdings (HKSE:02372) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Weili Holdings Ltd (HKSE:02372) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

New Industrial Park, Hong’an County, Hubei Province, Mi’ersi Town, CHN

Website

http://www.weiliholdings.com

Weili Holdings Ltd is a cigarette wrapping paper manufacturer in China with research and development capabilities to supply customized products to customers. The company mainly supply products to cigarette packaging manufacturers operating in various provinces in China, mainly including Hubei and Henan. The products sold by the company are used in the manufacture of cigarette packaging for well-known tobacco brands in China.

Executives

Chen Weizhuang	2201 Interest of corporation controlled by you
City Ease Limited	2101 Beneficial owner
Liu Yuezhu	2202 Interest of your spouse
Enlighten East Limited	2101 Beneficial owner
Yong Ning Limited	2101 Beneficial owner
Yu Tianbing	2201 Interest of corporation controlled by you
Zhou Huaqin	2202 Interest of your spouse

Weili Holdings (HKSE:02372) Headlines

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