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Maxnerva Technology Services (HKSE:01037) Operating Margin % : -2.72% (As of Dec. 2023)


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What is Maxnerva Technology Services Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Maxnerva Technology Services's Operating Income for the six months ended in Dec. 2023 was HK$-9.6 Mil. Maxnerva Technology Services's Revenue for the six months ended in Dec. 2023 was HK$354.5 Mil. Therefore, Maxnerva Technology Services's Operating Margin % for the quarter that ended in Dec. 2023 was -2.72%.

Warning Sign:

Maxnerva Technology Services Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -35.1%.

The historical rank and industry rank for Maxnerva Technology Services's Operating Margin % or its related term are showing as below:

HKSE:01037' s Operating Margin % Range Over the Past 10 Years
Min: -64.41   Med: 2.68   Max: 32.68
Current: 0.13


HKSE:01037's Operating Margin % is ranked worse than
58.83% of 2764 companies
in the Software industry
Industry Median: 3.64 vs HKSE:01037: 0.13

Maxnerva Technology Services's 5-Year Average Operating Margin % Growth Rate was -35.10% per year.

Maxnerva Technology Services's Operating Income for the six months ended in Dec. 2023 was HK$-9.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$0.9 Mil.


Maxnerva Technology Services Operating Margin % Historical Data

The historical data trend for Maxnerva Technology Services'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.

Maxnerva Technology Services Operating Margin % Chart

Maxnerva Technology Services Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.06 4.64 2.16 3.07 0.13

Maxnerva Technology Services Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 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 -0.28 2.75 3.32 2.74 -2.72

Competitive Comparison of Maxnerva Technology Services's Operating Margin %

For the Information Technology Services subindustry, Maxnerva Technology Services'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.


Maxnerva Technology Services's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Maxnerva Technology Services's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Maxnerva Technology Services's Operating Margin % falls into.



Maxnerva Technology Services 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.

Maxnerva Technology Services'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 )
=0.943 / 741.448
=0.13 %

Maxnerva Technology Services'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 )
=-9.642 / 354.452
=-2.72 %

* 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.


Maxnerva Technology Services  (HKSE:01037) 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.


Maxnerva Technology Services Operating Margin % Related Terms

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Maxnerva Technology Services (HKSE:01037) Business Description

Traded in Other Exchanges
N/A
Address
63 Mody Road, Room 1001, 10th Floor, Houston Centre, Tsim Sha Tsui East, Kowloon, Hong Kong, HKG
Maxnerva Technology Services Ltd is an investment holding company engaged in the operating segments of Smart Office Business, Industrial Solution Business and New Retail Business. Smart Office business segment is engaged in the provision of video conference related solutions plus brand licensing and supply chain management of smart office equipment. Industrial Solution Business segment is involved in the provision of smart manufacturing solutions and services to improve the effectiveness and efficiency of production lines, plant facilities and the management of industrial parks .New Retail business segment provides advanced digital signage and other retail solutions to their customers It has a business presence in Hong Kong, the PRC, the United States, Taiwan and others.
Executives
Fsk Holdings Limited 2201 Interest of corporation controlled by you
Fdg Fund, L.p. 2101 Beneficial owner
Tse Tik Yang Denis 2201 Interest of corporation controlled by you
Foxconn (far East) Limited 2101 Beneficial owner

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