Posted by MrGala > 2014-04-17 17:42 | Report Abuse

very good article (y)

Posted by kcchongnz > 2014-04-17 17:59 | Report Abuse

Kumpulan Fima, a case study of gross margin

Let us look at a company in Bursa and see if it has moat according to this article.

Below is the gross margin of Kfima for the last 12 years.

Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002
Gross margin 44% 46% 47% 40% 39% 36% 34% 33% 44% 47% 38% 44%

The average gross margin is 41% with a standard deviation and a coefficient of variance of 12.6%.

1) Isn't the gross margin high?
2) Isn't the high gross margin consistent?
3) Isn't that the gross margin even a slight rising trend?

So in according to the article, what do you think of the moat of the business of Kfima?

Posted by ronnietan > 2014-04-17 21:03 | Report Abuse

The biggest contributor to KFima's earnings is subsidiary Fima Corp which holds the national printers concession. The concession has an expiry date.
Can we assume Fima Corp will get the concession renewed, and therefore sustain the strong earnings for itself and KFima?
Isn't there a high risk a politically-connected party might get the concession instead?

Posted by kcchongnz > 2014-04-18 13:15 | Report Abuse

This forum is not about Kumpulan Fima, but about "What Gross Margins Can Tell You About a Company’s Economic Moat"