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Differ Group Auto (HKSE:06878) Operating Margin % : 28.28% (As of Jun. 2023)


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What is Differ Group Auto Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Differ Group Auto's Operating Income for the six months ended in Jun. 2023 was HK$335 Mil. Differ Group Auto's Revenue for the six months ended in Jun. 2023 was HK$1,185 Mil. Therefore, Differ Group Auto's Operating Margin % for the quarter that ended in Jun. 2023 was 28.28%.

Warning Sign:

Differ Group Auto Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -21.7%.

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

HKSE:06878' s Operating Margin % Range Over the Past 10 Years
Min: 4.38   Med: 55.99   Max: 91.91
Current: 23.52


HKSE:06878's Operating Margin % is ranked better than
55.99% of 384 companies
in the Credit Services industry
Industry Median: 17.505 vs HKSE:06878: 23.52

Differ Group Auto's 5-Year Average Operating Margin % Growth Rate was -21.70% per year.

Differ Group Auto's Operating Income for the six months ended in Jun. 2023 was HK$335 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was HK$434 Mil.


Differ Group Auto Operating Margin % Historical Data

The historical data trend for Differ Group Auto'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.

Differ Group Auto Operating Margin % Chart

Differ Group Auto Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.94 10.66 4.38 29.83 17.98

Differ Group Auto Semi-Annual Data
Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
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 20.44 32.66 22.28 14.96 28.28

Competitive Comparison of Differ Group Auto's Operating Margin %

For the Credit Services subindustry, Differ Group Auto'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.


Differ Group Auto's Operating Margin % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Differ Group Auto's Operating Margin % distribution charts can be found below:

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



Differ Group Auto 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.

Differ Group Auto's Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=202.38 / 1125.338
=17.98 %

Differ Group Auto's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=335.074 / 1184.676
=28.28 %

* 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.


Differ Group Auto  (HKSE:06878) 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.


Differ Group Auto Operating Margin % Related Terms

Thank you for viewing the detailed overview of Differ Group Auto's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Differ Group Auto (HKSE:06878) Business Description

Traded in Other Exchanges
N/A
Address
No. 503 Gaolin Middle Road, 33th Floor, Differ Fortune Centre, Huli District, Fujian Province, Xiamen, CHN
Differ Group Auto Ltd, formerly Differ Group Holding Co Ltd provides finance leases to corporate customers, which are mainly small and medium enterprises, incorporated and operating in Mainland China. The reportable segments of the Group are, Financial services segment includes the provision of guarantee services, express loan services, consultancy services, finance lease services, financial securities services, and assets management in the PRC and Hong Kong; Property development and investment segment includes property development projects and property investment activities in the PRC; Trading of commodities segment includes trading of commodities in the PRC; and Automobile e-commerce includes online e-commerce platform in the automobile industry in the PRC.
Executives
Expert Corporate Limited
Hong Mingxian
Shi Hongjiao
Tianjin Binhai Rural Commercial Bank Corporation 2106 Person having a security interest in shares
Ng Chi Chung 2201 Interest of corporation controlled by you
Ting Pui Shan 2202 Interest of your spouse
Jpmorgan Chase & Co. 2201 Interest of corporation controlled by you
Ever Ultimate Limited 2101 Beneficial owner
Huatai Securities Co., Ltd. 2201 Interest of corporation controlled by you

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