Xinji Shaxi Group Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Xinji Shaxi Group Co's Gross Margin % or its related term are showing as below:
HKSE:03603'
s Gross Margin % Range Over the Past 10 Years
Min: 84.01 Med: 89.48 Max: 90.7
Current: 84.19
During the past 8 years, the highestGross Margin % of Xinji Shaxi Group Co was 90.70%. The lowest was 84.01%. And the median was 89.48%.
HKSE:03603's Gross Margin % is ranked better than 90.94% of 1656
companies
in the Real Estate industry
Industry Median: 36.73
vs HKSE:03603: 84.19
Xinji Shaxi Group Co had a gross margin of 84.90% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Xinji Shaxi Group Co was -1.80% per year.
Xinji Shaxi Group Co Gross Margin % Historical Data
The historical data trend for Xinji Shaxi Group 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.
Competitive Comparison of Xinji Shaxi Group Co's Gross Margin %
For the Real Estate Services subindustry, Xinji Shaxi Group 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.
Xinji Shaxi Group Co's Gross Margin % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Xinji Shaxi Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Xinji Shaxi Group Co's Gross Margin % falls into.
* 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.
Xinji Shaxi Group Co (HKSE:03603) 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
Xinji Shaxi Group Co had a gross margin of 84.90% 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.
Xinji Shaxi Group Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Xinji Shaxi Group Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Xinji Shaxi Group Co (HKSE:03603) Business Description
Xinji Shaxi Group Co Ltd is engaged in managing owned and leased portfolio shopping mall which derives revenue from leasing floor areas to the tenants and providing comprehensive and continuous operation and management support to them in the PRC. It operates and manages hospitality supplies and home furnishing shopping malls, exhibition management services, and online shopping malls. The company has two operating segments which are Property leasing and Property management services of which it generates the majority of its revenue from Property leasing. Geographically the company operates in Hong Kong and the People's Republic of China.
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