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Link Holdings (HKSE:08237) Gross Margin % : 55.23% (As of Dec. 2023)


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What is Link Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Link Holdings's Gross Profit for the three months ended in Dec. 2023 was HK$8.92 Mil. Link Holdings's Revenue for the three months ended in Dec. 2023 was HK$16.15 Mil. Therefore, Link Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 55.23%.

Warning Sign:

Link Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.1%.


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

HKSE:08237' s Gross Margin % Range Over the Past 10 Years
Min: 52.08   Med: 62.12   Max: 74.41
Current: 64.64


During the past 11 years, the highest Gross Margin % of Link Holdings was 74.41%. The lowest was 52.08%. And the median was 62.12%.

HKSE:08237's Gross Margin % is ranked better than
75.26% of 772 companies
in the Travel & Leisure industry
Industry Median: 43.215 vs HKSE:08237: 64.64

Link Holdings had a gross margin of 55.23% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Link Holdings was -3.10% per year.


Link Holdings Gross Margin % Historical Data

The historical data trend for Link 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.

Link Holdings Gross Margin % Chart

Link Holdings 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 60.16 52.49 54.08 52.08 64.64

Link 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 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 64.46 69.35 67.84 67.57 55.23

Competitive Comparison of Link Holdings's Gross Margin %

For the Lodging subindustry, Link 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.


Link Holdings's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Link Holdings's Gross Margin % distribution charts can be found below:

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



Link Holdings Gross Margin % Calculation

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

Link 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 )
=37.7 / 58.332
=(Revenue - Cost of Goods Sold) / Revenue
=(58.332 - 20.627) / 58.332
=64.64 %

Link 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 )
=8.9 / 16.15
=(Revenue - Cost of Goods Sold) / Revenue
=(16.15 - 7.231) / 16.15
=55.23 %

* 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.


Link Holdings  (HKSE:08237) 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

Link Holdings had a gross margin of 55.23% 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.


Link Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Link Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Link Holdings (HKSE:08237) Business Description

Traded in Other Exchanges
N/A
Address
No.168-200 Connaught Road Central, Room 3503, 35th Floor West Tower of Shun Tak Centre, Sheung Wan, Hong Kong, HKG
Link Holdings Ltd is an investment holding company. It is engaged in the operation of hotel services and properties investment in the Southeast Asia region. The group's reportable segments are on the basis of the geographical locations which are Singapore, Indonesia, Japan and the PRC. The majority of the company's revenue is generated from Singapore. The group carries the Operation of hotel business in Singapore, Indonesia and Japan. and Distressed debt asset management business in the PRC.
Executives
Ace Kingdom Enterprises Corporation 2401 A concert party to an agreement to buy shares
Billion Supreme Holdings Limited 2401 A concert party to an agreement to buy shares
Boomerang Investment Limited 2501 Other
Kwok Yi Chit 2501 Other
Lam Wing Yu 2202 Interest of your spouse
Wong Chun Hung Hanson 2201 Interest of corporation controlled by you
Lui Tin Shun 2201 Interest of corporation controlled by you
Hui Ngan 2201 Interest of corporation controlled by you
Yuan Tianfu 2201 Interest of corporation controlled by you
China Orient Asset Management Co., Ltd. 2201 Interest of corporation controlled by you
Ng Meng Chit 2101 Beneficial owner
Ng Sam Meng 2101 Beneficial owner
China Minsheng Investment Group Corp., Ltd. 2201 Interest of corporation controlled by you

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