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Kontafarma China HoldingsHKSE:01312 +3.45% Gross Margin % is 56.07% as of Dec. 2025, which is 3% above its 10-year median of 54.54. The stock has 3 warning signs investors should review. Among 942 Drug Manufacturers companies, Kontafarma China Holdings ranks better than 63.38% on this metric.
HKSE:01312's Gross Margin % is ranked better than 63.38% of 942
companies
in the Drug Manufacturers industry
Industry Median: 48.5
vs HKSE:01312: 56.15
Kontafarma China Holdings had a gross margin of 56.07% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Kontafarma China Holdings (HKSE:01312) 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
Kontafarma China Holdings had a gross margin of 56.07% for the quarter that ended in Dec. 2025 => 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.
Kontafarma China Holdings Gross Margin % Related Terms
Kontafarma China 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Kontafarma China 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.
Kontafarma China Holdings Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Kontafarma China Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kontafarma China 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.
Kontafarma China Holdings (HKSE:01312) has a Gross Margin % of 56.07% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kontafarma China Holdings and its competitors. This is near median its historical median of 54.54. Over the past decade, Kontafarma China Holdings' Gross Margin % has ranged from 14.86 to 58.25. According to the industry distribution chart, Kontafarma China Holdings ranks #345 out of 942 companies in the Drug Manufacturers industry, placing it in the top 36.6%.
Is Kontafarma China Holdings' Gross Margin % too high?
Kontafarma China Holdings' current Gross Margin % of 56.07% is near median its 10-year median of 54.54. Over the past 10 years, this metric has ranged from a low of 14.86 to a high of 58.25. The Drug Manufacturers industry median Gross Margin % is 48.50. Kontafarma China Holdings' value of 56.07% is 15.6% above this industry median. Based on the distribution chart, Kontafarma China Holdings ranks #345 out of 942 companies in the Drug Manufacturers industry, which is above the industry midpoint.
How does Kontafarma China Holdings' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Kontafarma China Holdings ranks #345 out of 942 companies for Gross Margin %. This puts Kontafarma China Holdings in the upper half of its industry. The industry median Gross Margin % is 48.50. Kontafarma China Holdings' value of 56.07% is 15.6% above this benchmark. Historically, Kontafarma China Holdings' own Gross Margin % has ranged from 14.86 to 58.25 over the past decade. While the company's 10-year median is 54.54 vs. the industry median of 48.50, Kontafarma China 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 48.50, based on 942 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. Kontafarma China Holdings's current Gross Margin % of 56.07% is 15.6% 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 Kontafarma China Holdings and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kontafarma China Holdings's current Gross Margin % is 56.07%, which is near median its own 10-year median of 54.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kontafarma China Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kontafarma China Holdings (HKSE:01312) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.04, compared to a current price of HK$0.03 — trading 25% below its estimated fair value. The current Gross Margin % is 56.07%, which is near median its 10-year median of 54.54 and 15.6% above the Drug Manufacturers industry median of 48.50. 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 Kontafarma China Holdings (HKSE:01312), the current Gross Margin % is 56.07% as of Dec. 2025. 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.
Kontafarma China Holdings Ltd and its subsidiaries are principally engaged in the pharmaceutical and fitness business. The Group manufactures and sells prescription drugs, including chemical drugs, traditional Chinese medicine prescriptions, active pharmaceutical ingredients, and API intermediates in China, and operates fitness centres, provides fitness and health consultation services, and operates a franchise business for royalty fee income. Its segments are the pharmaceutical business, which generates maximum revenue, and the fitness business. The Group operates in Mainland China, Singapore, Taiwan, and other regions, with maximum revenue from Mainland China.
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