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What is Zhongzhi Pharmaceutical Holdings Gross Margin %?
Zhongzhi Pharmaceutical HoldingsHKSE:03737 47 Gross Margin % is 54.07% as of Dec. 2025, which is 9% below its 10-year median of 59.58. GuruFocus rates HKSE:03737 with a GF Score™ of 47/100 and a GF Value™ of HK$0.89 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 939 Drug Manufacturers companies, Zhongzhi Pharmaceutical Holdings ranks better than 60.28% on this metric.
HKSE:03737's Gross Margin % is ranked better than 60.28% of 939
companies
in the Drug Manufacturers industry
Industry Median: 48.55
vs HKSE:03737: 54.44
Zhongzhi Pharmaceutical Holdings had a gross margin of 54.07% for the quarter that ended in Dec. 2025 => Durable competitive advantage
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
Zhongzhi Pharmaceutical Holdings had a gross margin of 54.07% 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.
Zhongzhi Pharmaceutical Holdings Gross Margin % Related Terms
Zhongzhi Pharmaceutical 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, Zhongzhi Pharmaceutical 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.
Zhongzhi Pharmaceutical Holdings Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zhongzhi Pharmaceutical Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhongzhi Pharmaceutical 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.
Zhongzhi Pharmaceutical Holdings (HKSE:03737) has a Gross Margin % of 54.07% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhongzhi Pharmaceutical Holdings and its competitors. This is near median its historical median of 59.58. Over the past decade, Zhongzhi Pharmaceutical Holdings' Gross Margin % has ranged from 54.44 to 62.19. According to the industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #373 out of 939 companies in the Drug Manufacturers industry, placing it in the top 39.7%.
Is Zhongzhi Pharmaceutical Holdings' Gross Margin % too high?
Zhongzhi Pharmaceutical Holdings' current Gross Margin % of 54.07% is near median its 10-year median of 59.58. Over the past 10 years, this metric has ranged from a low of 54.44 to a high of 62.19. The Drug Manufacturers industry median Gross Margin % is 48.55. Zhongzhi Pharmaceutical Holdings' value of 54.07% is 11.4% above this industry median. Based on the distribution chart, Zhongzhi Pharmaceutical Holdings ranks #373 out of 939 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Zhongzhi Pharmaceutical Holdings has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhongzhi Pharmaceutical Holdings' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #373 out of 939 companies for Gross Margin %. This puts Zhongzhi Pharmaceutical Holdings in the upper half of its industry. The industry median Gross Margin % is 48.55. Zhongzhi Pharmaceutical Holdings' value of 54.07% is 11.4% above this benchmark. Historically, Zhongzhi Pharmaceutical Holdings' own Gross Margin % has ranged from 54.44 to 62.19 over the past decade. While the company's 10-year median is 59.58 vs. the industry median of 48.55, Zhongzhi Pharmaceutical 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 48.55, based on 939 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. Zhongzhi Pharmaceutical Holdings's current Gross Margin % of 54.07% is 11.4% 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 Zhongzhi Pharmaceutical Holdings and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongzhi Pharmaceutical Holdings's current Gross Margin % is 54.07%, which is near median its own 10-year median of 59.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongzhi Pharmaceutical Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings (HKSE:03737) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.89, compared to a current price of HK$0.71 — trading 20.2% below its estimated fair value. The current Gross Margin % is 54.07%, which is near median its 10-year median of 59.58 and 11.4% above the Drug Manufacturers industry median of 48.55. Zhongzhi Pharmaceutical Holdings' overall GF Score™ is 47/100 with 7 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737), the current Gross Margin % is 54.07% 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.
Is Zhongzhi Pharmaceutical Holdings (HKSE:03737) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings stock appears to be undervalued.
The current stock price of HK$0.71 is trading 20.2% below its estimated GF Value™ of HK$0.89.
GuruFocus considers Zhongzhi Pharmaceutical Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:03737:
Gross Margin %: 54.07% (near median its 10-year median of 59.58)
GF Value™: HK$0.89 vs. price of HK$0.71 (20.2% below fair value)
Industry Position: 11.4% above the Drug Manufacturers median (#373 of 939)
No single metric tells the full story. See the HKSE:03737 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongzhi Pharmaceutical Holdings Ltd is an investment holding company principally engaged in the manufacture and sale of pharmaceutical products in the PRC. The Group is a large industrial and trading enterprise group featuring researching, producing, and selling traditional Chinese medicine preparations, prepared slices of Chinese crude drugs, and foods. Its products include Shenqi Koufuye, Yinhuang Jiaonang, Yinhuang Keli, and others. Its segments are the pharmaceutical manufacturing segment, which generates maximum revenue, is engaged in the research and development, manufacturing, and sale of Chinese patent medicines and decoction pieces consisting of traditional decoction pieces and modern decoction pieces, and the operation of the chain pharmacies segment.
47GF Score
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