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New Concepts Holdings (HKSE:02221) Operating Margin % : -1.91% (As of Sep. 2023)


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What is New Concepts Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. New Concepts Holdings's Operating Income for the six months ended in Sep. 2023 was HK$-5.9 Mil. New Concepts Holdings's Revenue for the six months ended in Sep. 2023 was HK$307.1 Mil. Therefore, New Concepts Holdings's Operating Margin % for the quarter that ended in Sep. 2023 was -1.91%.

Good Sign:

New Concepts Holdings Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

HKSE:02221' s Operating Margin % Range Over the Past 10 Years
Min: -16.67   Med: -3.94   Max: 13.26
Current: -2.16


HKSE:02221's Operating Margin % is ranked worse than
81.76% of 1650 companies
in the Construction industry
Industry Median: 5.125 vs HKSE:02221: -2.16

New Concepts Holdings's 5-Year Average Operating Margin % Growth Rate was 23.50% per year.

New Concepts Holdings's Operating Income for the six months ended in Sep. 2023 was HK$-5.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was HK$-12.1 Mil.

Warning Sign:

New Concepts Holdings Ltd has never been profitable in the past 3 years. It lost money every year.


New Concepts Holdings Operating Margin % Historical Data

The historical data trend for New Concepts 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.

New Concepts Holdings Operating Margin % Chart

New Concepts Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.70 -12.47 -12.83 -1.42 -6.45

New Concepts Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 -3.20 0.22 -9.99 -2.45 -1.91

Competitive Comparison of New Concepts Holdings's Operating Margin %

For the Engineering & Construction subindustry, New Concepts 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.


New Concepts Holdings's Operating Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, New Concepts Holdings's Operating Margin % distribution charts can be found below:

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



New Concepts 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.

New Concepts Holdings's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=-35.189 / 545.189
=-6.45 %

New Concepts Holdings's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=-5.876 / 307.098
=-1.91 %

* 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.


New Concepts Holdings  (HKSE:02221) 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.


New Concepts Holdings Operating Margin % Related Terms

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New Concepts Holdings (HKSE:02221) Business Description

Traded in Other Exchanges
N/A
Address
19 Wang Chiu Road, Kingston International Centre, Office B, 3rd Floor, Kowloon Bay, Hong Kong, HKG
New Concepts Holdings Ltd is an investment holding company. The company's operating segment includes Construction works and Environmental protection services. It generates maximum revenue from the Construction works segment. The Construction work segment is engaged in the provision of foundation works, civil engineering works, and general building works in Hong Kong. Geographically, it derives a majority of its revenue from Hong Kong and also has a presence in Mainland China.
Executives
Yuan Heng Qi Ye Guan Li Shen Zhen Ji Tuan You Xian Gong Si
Zhu Yongjun
Yuan Heng Group International Co., Limited
Lin Jiakuang
Final Destination Limited 2201 Interest of corporation controlled by you
Ding Yi Feng Holdings Group International Limited 2201 Interest of corporation controlled by you
Hong Kong Toprich Investment Limited 2101 Beneficial owner
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Prosper Power Group Limited
Chu Shu Cheong
Jumbo Grand Enterprise Development Limited
China Investment Fund Company Limited 2201 Interest of corporation controlled by you
Flying Goddess Limited 2201 Interest of corporation controlled by you
Hong Kong Toprich Investment Limited 2101 Beneficial owner

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