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Chinese People Holdings Co (HKSE:00681) Operating Margin % : 1.79% (As of Dec. 2023)


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What is Chinese People Holdings Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Chinese People Holdings Co's Operating Income for the six months ended in Dec. 2023 was HK$24 Mil. Chinese People Holdings Co's Revenue for the six months ended in Dec. 2023 was HK$1,343 Mil. Therefore, Chinese People Holdings Co's Operating Margin % for the quarter that ended in Dec. 2023 was 1.79%.

Warning Sign:

Chinese People Holdings Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -25.6%.

The historical rank and industry rank for Chinese People Holdings Co's Operating Margin % or its related term are showing as below:

HKSE:00681' s Operating Margin % Range Over the Past 10 Years
Min: 1.25   Med: 4.89   Max: 7.8
Current: 2.3


HKSE:00681's Operating Margin % is ranked worse than
83.92% of 510 companies
in the Utilities - Regulated industry
Industry Median: 12.49 vs HKSE:00681: 2.30

Chinese People Holdings Co's 5-Year Average Operating Margin % Growth Rate was -25.60% per year.

Chinese People Holdings Co's Operating Income for the six months ended in Dec. 2023 was HK$24 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$63 Mil.


Chinese People Holdings Co Operating Margin % Historical Data

The historical data trend for Chinese People Holdings Co's Operating 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.

Chinese People Holdings Co Operating Margin % Chart

Chinese People Holdings Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.66 5.11 3.72 1.25 2.30

Chinese People Holdings Co Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Operating 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 3.98 1.94 0.51 2.79 1.79

Competitive Comparison of Chinese People Holdings Co's Operating Margin %

For the Utilities - Regulated Gas subindustry, Chinese People Holdings Co's Operating Margin %, along with its competitors' market caps and Operating 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.


Chinese People Holdings Co's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Chinese People Holdings Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Chinese People Holdings Co's Operating Margin % falls into.



Chinese People Holdings Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Chinese People Holdings Co's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=63.297 / 2749.236
=2.30 %

Chinese People Holdings Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=24.042 / 1342.879
=1.79 %

* 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.


Chinese People Holdings Co  (HKSE:00681) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Chinese People Holdings Co Operating Margin % Related Terms

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Chinese People Holdings Co (HKSE:00681) Business Description

Traded in Other Exchanges
Address
No. 2 Jingyuan North Street, No. 36 BDA International Business Park, Economic Technological Development Area, Beijing, CHN
Chinese People Holdings Co Ltd is an investment holding company. Its segments are Piped gas transmission & distribution, which is into sales of piped gas and construction of gas pipeline networks under gas connection contracts; Cylinder gas supply segment includes sales and distribution of gas using tank containers to end-user households, industrial and commercial customers; Gas distribution segment is into sales of natural gas to industrial and commercial customers; and FMCG & food ingredients supply which is into wholesales and retail of merchandise through supermarkets and convenience stores. Geographically, it derives revenue from China.

Chinese People Holdings Co (HKSE:00681) Headlines

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