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Longfor Group Holdings (HKSE:00960) Operating Margin % : 9.53% (As of Dec. 2023)


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What is Longfor Group Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Longfor Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$12,371 Mil. Longfor Group Holdings's Revenue for the six months ended in Dec. 2023 was HK$129,823 Mil. Therefore, Longfor Group Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was 9.53%.

Warning Sign:

Longfor Group Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -16%.

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

HKSE:00960' s Operating Margin % Range Over the Past 10 Years
Min: 11.06   Med: 22.54   Max: 27.07
Current: 11.06


HKSE:00960's Operating Margin % is ranked worse than
53.54% of 1780 companies
in the Real Estate industry
Industry Median: 13.245 vs HKSE:00960: 11.06

Longfor Group Holdings's 5-Year Average Operating Margin % Growth Rate was -16.00% per year.

Longfor Group Holdings's Operating Income for the six months ended in Dec. 2023 was HK$12,371 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$21,865 Mil.


Longfor Group Holdings Operating Margin % Historical Data

The historical data trend for Longfor Group Holdings'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.

Longfor Group Holdings Operating Margin % Chart

Longfor Group Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.68 22.64 18.28 16.42 11.06

Longfor Group Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 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 18.91 14.75 17.44 13.99 9.53

Competitive Comparison of Longfor Group Holdings's Operating Margin %

For the Real Estate - Development subindustry, Longfor Group Holdings'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.


Longfor Group Holdings's Operating Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Longfor Group Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Longfor Group Holdings's Operating Margin % falls into.



Longfor Group Holdings 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.

Longfor Group Holdings'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 )
=21864.611 / 197685.85
=11.06 %

Longfor Group Holdings'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 )
=12370.873 / 129822.979
=9.53 %

* 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.


Longfor Group Holdings  (HKSE:00960) 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.


Longfor Group Holdings Operating Margin % Related Terms

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Longfor Group Holdings (HKSE:00960) Business Description

Traded in Other Exchanges
Address
No. 8 Beiyuan Street, Building 6, Beijing Longfor Blue Engine Industrial Park, Chaoyang District, Beijing, CHN, 100012
Longfor Group Holdings, or Longfor, is a privately owned real estate developer in China with contracted sales value placing it among the top 10 of all China's developers. The company focuses on developing high-quality residential projects, as well as operating shopping malls and rental apartments in China's wealthier cities. Property development represents the majority of Longfor's revenue and gross profit, while income from commercial properties, property management, and project management services have been growing fast. At the end of 2022, Wu Yajun remained Longfor's largest shareholder with an over 43% equity interest, while her ex-husband Cai Kui has a 23% stake.

Longfor Group Holdings (HKSE:00960) Headlines

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