Hao Wen Holdings (HKSE:08019) Gross Margin % : 83.59% (As of Dec. 2023)

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What is Hao Wen Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hao Wen Holdings's Gross Profit for the three months ended in Dec. 2023 was HK$9.64 Mil. Hao Wen Holdings's Revenue for the three months ended in Dec. 2023 was HK$11.53 Mil. Therefore, Hao Wen Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 83.59%.

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

HKSE:08019' s Gross Margin % Range Over the Past 10 Years
Min: 22 Med: 57.75 Max: 72.79
Current: 72.54

During the past 13 years, the highest Gross Margin % of Hao Wen Holdings was 72.79%. The lowest was 22.00%. And the median was 57.75%.

HKSE:08019's Gross Margin % is ranked better than
71.59% of 359 companies
in the Credit Services industry
Industry Median: 53.4 vs HKSE:08019: 72.54

Hao Wen Holdings had a gross margin of 83.59% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hao Wen Holdings was 4.50% per year.

Hao Wen Holdings Gross Margin % Historical Data

The historical data trend for Hao Wen 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.

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Hao Wen Holdings Gross Margin % Chart

Hao Wen Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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57.35

65.44

58.15

62.35

72.79

Hao Wen Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															60.78	55.15	77.14	80.29	83.59

Competitive Comparison of Hao Wen Holdings's Gross Margin %

For the Credit Services subindustry, Hao Wen 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.

Hao Wen Holdings's Gross Margin % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Hao Wen Holdings's Gross Margin % distribution charts can be found below:

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

Hao Wen Holdings Gross Margin % Calculation

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

Hao Wen 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 )
	=	36.4	/	50.029
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(50.029 - 13.611)	/	50.029
	=	72.79 %

Hao Wen 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 )
	=	9.6	/	11.53
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11.53 - 1.892)	/	11.53
	=	83.59 %

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.

Hao Wen Holdings (HKSE:08019) 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

Hao Wen Holdings had a gross margin of 83.59% 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.

Hao Wen Holdings Gross Margin % Related Terms

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Hao Wen Holdings (HKSE:08019) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Hao Wen Holdings Ltd (HKSE:08019) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

199 Des Voeux Road Central, Level 12, Infinitus Plaza, Sheung Wan, Hong Kong, HKG

Website

https://www.tricor.com.hk

Hao Wen Holdings Ltd is an investment holding company. The Company's operating and reportable segments are as follows, i) the Money Lending segment engages in interest income earned from the money lending business; ii) the Electronic Parts segment engages in trading of electronic parts business; iii) the Burial Business segment engages in sales of burial plots and related services business and cemetery maintenance service; and iv) the Beauty Business segment engages in the provision of non-surgical injection treatments with no upfront payment and sales of beauty products.

Hao Wen Holdings (HKSE:08019) Headlines

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