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China Health GroupHKSE:00673 24 Gross Margin % is 24.58% as of Mar. 2026, which is 25% below its 10-year median of 32.58. GuruFocus rates HKSE:00673 with a GF Score™ of 24/100 and a GF Value™ of HK$0.24 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 118 Medical Distribution companies, China Health Group ranks better than 54.24% on this metric.
China Health Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.5%.
The historical rank and industry rank for China Health Group's Gross Margin % or its related term are showing as below:
HKSE:00673'
s Gross Margin % Range Over the Past 10 Years
Min: 17.35 Med: 32.58 Max: 59.91
Current: 17.35
During the past 13 years, the highestGross Margin % of China Health Group was 59.91%. The lowest was 17.35%. And the median was 32.58%.
HKSE:00673's Gross Margin % is ranked better than 54.24% of 118
companies
in the Medical Distribution industry
Industry Median: 14.9
vs HKSE:00673: 17.35
China Health Group had a gross margin of 24.58% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for China Health Group was -9.50% per year.
China Health Group (HKSE:00673) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
China Health Group had a gross margin of 24.58% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
China Health Group Gross Margin % Related Terms
China Health Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for China Health Group's Gross 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.
HKSE:00673 vs MCK, COR, CAH: Gross Margin % Comparison
For the Medical Distribution subindustry, China Health Group's Gross Margin %, along with its competitors' market caps and Gross 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.
China Health Group Gross Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, China Health Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Health Group's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
China Health Group (HKSE:00673) has a Gross Margin % of 24.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Health Group and its competitors. This is 25% below median its historical median of 32.58. Over the past decade, China Health Group's Gross Margin % has ranged from 17.35 to 59.91. According to the industry distribution chart, China Health Group ranks #54 out of 118 companies in the Medical Distribution industry, placing it in the top 45.8%.
Is China Health Group's Gross Margin % too high?
China Health Group's current Gross Margin % of 24.58% is 25% below median its 10-year median of 32.58. Over the past 10 years, this metric has ranged from a low of 17.35 to a high of 59.91. The Medical Distribution industry median Gross Margin % is 14.90. China Health Group's value of 24.58% is 65% above this industry median. Based on the distribution chart, China Health Group ranks #54 out of 118 companies in the Medical Distribution industry, which is above the industry midpoint. Overall, China Health Group has a GF Score™ of 24/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Health Group's Gross Margin % compare to MCK and COR?
According to the Medical Distribution industry distribution chart, China Health Group ranks #54 out of 118 companies for Gross Margin %. This puts China Health Group in the upper half of its industry. The industry median Gross Margin % is 14.90. China Health Group's value of 24.58% is 65% above this benchmark. Historically, China Health Group's own Gross Margin % has ranged from 17.35 to 59.91 over the past decade. While the company's 10-year median is 32.58 vs. the industry median of 14.90, China Health Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Distribution company?
The median Gross Margin % among Medical Distribution companies is 14.90, based on 118 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Health Group's current Gross Margin % of 24.58% is 65% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on China Health Group and its competitors. For the Medical Distribution industry, the median Gross Margin % is 14.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Health Group's current Gross Margin % is 24.58%, which is 25% below median its own 10-year median of 32.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Health Group stock overvalued right now?
Based on GuruFocus' analysis, China Health Group (HKSE:00673) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.24, compared to a current price of HK$0.40 — trading 66.7% above its estimated fair value. The current Gross Margin % is 24.58%, which is 25% below median its 10-year median of 32.58 and 65% above the Medical Distribution industry median of 14.90. China Health Group's overall GF Score™ is 24/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For China Health Group (HKSE:00673), the current Gross Margin % is 24.58% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Health Group (HKSE:00673) Overvalued in 2026?
Based on GuruFocus' analysis, China Health Group stock appears to be overvalued.
The current stock price of HK$0.40 is trading 66.7% above its estimated GF Value™ of HK$0.24.
GuruFocus considers China Health Group to be Significantly Overvalued.
Key valuation signals for HKSE:00673:
Gross Margin %: 24.58% (25% below median its 10-year median of 32.58)
GF Value™: HK$0.24 vs. price of HK$0.40 (66.7% above fair value)
Industry Position: 65% above the Medical Distribution median (#54 of 118)
No single metric tells the full story. See the HKSE:00673 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Health Group Ltd is an investment holding company. It is principally engaged in the distribution and service of medical equipment and consumables, provision of hospital operation and management services, and business factoring. It operates in the business in four segments: medical equipment and consumables distribution and service business; hospital operation and management services business; business service; and research and development and sale of functional food. It derives a majority of revenue from the Distribution and service in the medical equipment and consumables segment. Geographically, the group derives its revenue from the PRC.
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