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Sun Hung Kai Properties (MEX:16) Operating Margin % : 32.81% (As of Jun. 2024)


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What is Sun Hung Kai Properties Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Sun Hung Kai Properties's Operating Income for the six months ended in Jun. 2024 was MXN33,832 Mil. Sun Hung Kai Properties's Revenue for the six months ended in Jun. 2024 was MXN103,127 Mil. Therefore, Sun Hung Kai Properties's Operating Margin % for the quarter that ended in Jun. 2024 was 32.81%.

Warning Sign:

Sun Hung Kai Properties Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4%.

The historical rank and industry rank for Sun Hung Kai Properties's Operating Margin % or its related term are showing as below:

MEX:16' s Operating Margin % Range Over the Past 10 Years
Min: 30.81   Med: 39.08   Max: 43.51
Current: 34.94


MEX:16's Operating Margin % is ranked better than
75.01% of 1773 companies
in the Real Estate industry
Industry Median: 13.18 vs MEX:16: 34.94

Sun Hung Kai Properties's 5-Year Average Operating Margin % Growth Rate was -4.00% per year.

Sun Hung Kai Properties's Operating Income for the six months ended in Jun. 2024 was MXN33,832 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was MXN56,791 Mil.


Sun Hung Kai Properties Operating Margin % Historical Data

The historical data trend for Sun Hung Kai Properties'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.

Sun Hung Kai Properties Operating Margin % Chart

Sun Hung Kai Properties Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.89 43.39 42.14 38.11 34.94

Sun Hung Kai Properties Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 43.79 39.04 37.53 38.35 32.81

Competitive Comparison of Sun Hung Kai Properties's Operating Margin %

For the Real Estate - Development subindustry, Sun Hung Kai Properties'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.


Sun Hung Kai Properties's Operating Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Sun Hung Kai Properties's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Sun Hung Kai Properties's Operating Margin % falls into.



Sun Hung Kai Properties 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.

Sun Hung Kai Properties's Operating Margin % for the fiscal year that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=58610.255 / 167733.327
=34.94 %

Sun Hung Kai Properties's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=33832.375 / 103127.402
=32.81 %

* 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.


Sun Hung Kai Properties  (MEX:16) 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.


Sun Hung Kai Properties Operating Margin % Related Terms

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Sun Hung Kai Properties Business Description

Traded in Other Exchanges
Address
30 Harbour Road, 45th Floor, Sun Hung Kai Centre, Hong Kong, HKG
Sun Hung Kai Properties is a diversified real estate developer in Hong Kong with a core focus on the residential, retail and office real estate segment. Most of its business is based in Hong Kong where it is a leading private housing developer and holds a portfolio of high-quality retail and office assets for rental income. The company also invests in other listed entities, including telecommunication company, SmarTone and data center provider, SUNeVision. The Kwok family is the controlling shareholder, with a stake of more than 40%.

Sun Hung Kai Properties Headlines

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