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Shenzhen Gas (SHSE:601139) Gross Margin % : 15.18% (As of Mar. 2024)


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What is Shenzhen Gas Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shenzhen Gas's Gross Profit for the three months ended in Mar. 2024 was ¥1,042 Mil. Shenzhen Gas's Revenue for the three months ended in Mar. 2024 was ¥6,863 Mil. Therefore, Shenzhen Gas's Gross Margin % for the quarter that ended in Mar. 2024 was 15.18%.

Warning Sign:

Shenzhen Gas Corp Ltd gross margin has been in long-term decline. The average rate of decline per year is -8%.


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

SHSE:601139' s Gross Margin % Range Over the Past 10 Years
Min: 14.65   Med: 21.24   Max: 25.78
Current: 15.87


During the past 13 years, the highest Gross Margin % of Shenzhen Gas was 25.78%. The lowest was 14.65%. And the median was 21.24%.

SHSE:601139's Gross Margin % is ranked worse than
74.1% of 502 companies
in the Utilities - Regulated industry
Industry Median: 29.37 vs SHSE:601139: 15.87

Shenzhen Gas had a gross margin of 15.18% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Shenzhen Gas was -8.00% per year.


Shenzhen Gas Gross Margin % Historical Data

The historical data trend for Shenzhen Gas'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.

Shenzhen Gas Gross Margin % Chart

Shenzhen Gas 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 21.52 25.78 19.78 14.65 15.50

Shenzhen Gas Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 13.74 16.01 16.66 15.52 15.18

Competitive Comparison of Shenzhen Gas's Gross Margin %

For the Utilities - Regulated Gas subindustry, Shenzhen Gas'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.


Shenzhen Gas's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Shenzhen Gas's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shenzhen Gas's Gross Margin % falls into.



Shenzhen Gas Gross Margin % Calculation

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

Shenzhen Gas'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 )
=4793.1 / 30928.625
=(Revenue - Cost of Goods Sold) / Revenue
=(30928.625 - 26135.511) / 30928.625
=15.50 %

Shenzhen Gas's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=1041.8 / 6862.512
=(Revenue - Cost of Goods Sold) / Revenue
=(6862.512 - 5820.75) / 6862.512
=15.18 %

* 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.


Shenzhen Gas  (SHSE:601139) 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

Shenzhen Gas had a gross margin of 15.18% for the quarter that ended in Mar. 2024 => 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.


Shenzhen Gas Gross Margin % Related Terms

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


Shenzhen Gas (SHSE:601139) Business Description

Traded in Other Exchanges
N/A
Address
Mei Road 268, Futian District, Guangdong Province, Shenzhen, CHN, 518049
Shenzhen Gas Corp Ltd is engaged in urban pipeline gas supply, liquefied petroleum gas wholesale, and bottled liquefied petroleum gas retail activities in China and internationally. It serves approximately 2.54 million pipeline gas customers. The company also holds rights for pipeline gas business in around 29 cities under the Shenzhen gas brand.

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