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Wai Yuen Tong Medicine HoldingsHKSE:00897 38 Gross Margin % is 54.53% as of Mar. 2026, which is 25% above its 10-year median of 43.72. GuruFocus rates HKSE:00897 with a GF Score™ of 38/100 and a GF Value™ of HK$0.29 (Fairly Valued). The stock has 2 warning signs investors should review. Among 938 Drug Manufacturers companies, Wai Yuen Tong Medicine Holdings ranks better than 57.68% on this metric.
HKSE:00897's Gross Margin % is ranked better than 57.68% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.51
vs HKSE:00897: 52.96
Wai Yuen Tong Medicine Holdings had a gross margin of 54.53% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Wai Yuen Tong Medicine Holdings (HKSE:00897) 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
Wai Yuen Tong Medicine Holdings had a gross margin of 54.53% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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.
Wai Yuen Tong Medicine Holdings Gross Margin % Related Terms
Wai Yuen Tong Medicine Holdings Gross Margin % Historical Data
* 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.
Wai Yuen Tong Medicine Holdings Gross Margin % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Wai Yuen Tong Medicine Holdings'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.
Wai Yuen Tong Medicine Holdings Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Wai Yuen Tong Medicine Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wai Yuen Tong Medicine Holdings'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.
Wai Yuen Tong Medicine Holdings (HKSE:00897) has a Gross Margin % of 54.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Wai Yuen Tong Medicine Holdings and its competitors. This is 25% above median its historical median of 43.72. Over the past decade, Wai Yuen Tong Medicine Holdings' Gross Margin % has ranged from 40.13 to 52.96. According to the industry distribution chart, Wai Yuen Tong Medicine Holdings ranks #397 out of 938 companies in the Drug Manufacturers industry, placing it in the top 42.3%.
Is Wai Yuen Tong Medicine Holdings' Gross Margin % too high?
Wai Yuen Tong Medicine Holdings' current Gross Margin % of 54.53% is 25% above median its 10-year median of 43.72. Over the past 10 years, this metric has ranged from a low of 40.13 to a high of 52.96. The Drug Manufacturers industry median Gross Margin % is 48.51. Wai Yuen Tong Medicine Holdings' value of 54.53% is 12.4% above this industry median. Based on the distribution chart, Wai Yuen Tong Medicine Holdings ranks #397 out of 938 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Wai Yuen Tong Medicine Holdings has a GF Score™ of 38/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Wai Yuen Tong Medicine Holdings' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Wai Yuen Tong Medicine Holdings ranks #397 out of 938 companies for Gross Margin %. This puts Wai Yuen Tong Medicine Holdings in the upper half of its industry. The industry median Gross Margin % is 48.51. Wai Yuen Tong Medicine Holdings' value of 54.53% is 12.4% above this benchmark. Historically, Wai Yuen Tong Medicine Holdings' own Gross Margin % has ranged from 40.13 to 52.96 over the past decade. While the company's 10-year median is 43.72 vs. the industry median of 48.51, Wai Yuen Tong Medicine Holdings 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.51, based on 938 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. Wai Yuen Tong Medicine Holdings's current Gross Margin % of 54.53% is 12.4% 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 Wai Yuen Tong Medicine Holdings and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wai Yuen Tong Medicine Holdings's current Gross Margin % is 54.53%, which is 25% above median its own 10-year median of 43.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wai Yuen Tong Medicine Holdings stock overvalued right now?
Based on GuruFocus' analysis, Wai Yuen Tong Medicine Holdings (HKSE:00897) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.29, compared to a current price of HK$0.29 — trading right at its estimated fair value. The current Gross Margin % is 54.53%, which is 25% above median its 10-year median of 43.72 and 12.4% above the Drug Manufacturers industry median of 48.51. Wai Yuen Tong Medicine Holdings' overall GF Score™ is 38/100 with 2 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 Wai Yuen Tong Medicine Holdings (HKSE:00897), the current Gross Margin % is 54.53% 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 Wai Yuen Tong Medicine Holdings (HKSE:00897) Overvalued in 2026?
Based on GuruFocus' analysis, Wai Yuen Tong Medicine Holdings stock appears to be undervalued.
The current stock price of HK$0.29 is trading 0% below its estimated GF Value™ of HK$0.29.
GuruFocus considers Wai Yuen Tong Medicine Holdings to be Fairly Valued.
Key valuation signals for HKSE:00897:
Gross Margin %: 54.53% (25% above median its 10-year median of 43.72)
GF Value™: HK$0.29 vs. price of HK$0.29 (0% below fair value)
Industry Position: 12.4% above the Drug Manufacturers median (#397 of 938)
No single metric tells the full story. See the HKSE:00897 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wai Yuen Tong Medicine Holdings Ltd is an investment holding company. The company's operating segment includes production and sale of Chinese pharmaceutical and health food products; production and sale of Western pharmaceutical and health food products and property investment and management and sale of properties. It generates maximum revenue from the production and sale of Chinese pharmaceutical and health food products which include manufacturing, processing, and sale of traditional Chinese medicine which includes Chinese medicinal products sold under the brand name Wai Yuen Tong. Geographically, it derives a majority of revenue from Mainland China.
38GF Score
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