Interesting analysis from Valuebuddies.com (by cmeng_chan)
| I compared the Gross/Net Margin. Gross margin indicates the direct costs in making the product (production operator headcount costs, material costs, etc). For a gross margin of 20%, that would mean a $100 product costs $80 to build, and company earns $20 gross margin. On the other hand, net margin includes all other non-direct costs (Sales, IT, HR, etc) to keep the business running. |
CEO Lou YiliangThe current CEO Lou Yiliang took up the position at end 2015. How was the transformation?
The gross margin is close to 20% after he took over, which means production costs came down.
The nett margin shows a steady climb to 10.69%, which means that other costs came down too.
Generally, operations are getting more efficiently run under this CEO.
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Under CEO Lou’s watch |
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2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
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Revenue (m) |
246.9 |
225.6 |
233.1 |
214.7 |
212.7 |
218.3 |
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Gross profit (m) |
29.9 |
17.8 |
15.2 |
41.0 |
38.9 |
46.7 |
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Gross margin |
12.09% |
7.89% |
6.54% |
19.08% |
18.31% |
21.40% |
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Net Margin |
0.22% |
-12.70% |
-6.55% |
6.43% |
7.43% |
10.69% |
See Innotek thread on Valuebuddies here.