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Hospital of ChinaHKSE:03869 73 Gross Margin % is 16.56% as of Dec. 2025, which is 59% below its 10-year median of 40.42. GuruFocus rates HKSE:03869 with a GF Score™ of 73/100 and a GF Value™ of HK$5.53 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 635 Healthcare Providers & Services companies, Hospital of China ranks worse than 88.03% on this metric.
Hospital Corporation of China Ltd gross margin has been in long-term decline. The average rate of decline per year is -18.1%.
The historical rank and industry rank for Hospital of China's Gross Margin % or its related term are showing as below:
HKSE:03869'
s Gross Margin % Range Over the Past 10 Years
Min: 13.2 Med: 40.42 Max: 62.3
Current: 18.18
During the past 12 years, the highestGross Margin % of Hospital of China was 62.30%. The lowest was 13.20%. And the median was 40.42%.
HKSE:03869's Gross Margin % is ranked worse than 88.03% of 635
companies
in the Healthcare Providers & Services industry
Industry Median: 40.25
vs HKSE:03869: 18.18
Hospital of China had a gross margin of 16.56% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hospital of China was -18.10% per year.
Hospital of China (HKSE:03869) 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
Hospital of China had a gross margin of 16.56% for the quarter that ended in Dec. 2025 => No sustainable 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.
Hospital of China Gross Margin % Related Terms
Hospital of China Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hospital of China'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:03869 vs HCA, THC, EHC: Gross Margin % Comparison
For the Medical Care Facilities subindustry, Hospital of China'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.
Hospital of China Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Hospital of China's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hospital of China'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.
Hospital of China (HKSE:03869) has a Gross Margin % of 16.56% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hospital of China and its competitors. This is 59% below median its historical median of 40.42. Over the past decade, Hospital of China's Gross Margin % has ranged from 13.20 to 62.30. According to the industry distribution chart, Hospital of China ranks #559 out of 635 companies in the Healthcare Providers & Services industry, placing it in the top 88%.
Is Hospital of China's Gross Margin % too high?
Hospital of China's current Gross Margin % of 16.56% is 59% below median its 10-year median of 40.42. Over the past 10 years, this metric has ranged from a low of 13.20 to a high of 62.30. The Healthcare Providers & Services industry median Gross Margin % is 40.25. Hospital of China's value of 16.56% is 58.9% below this industry median. Based on the distribution chart, Hospital of China ranks #559 out of 635 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Hospital of China has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hospital of China's Gross Margin % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Hospital of China ranks #559 out of 635 companies for Gross Margin %. This places Hospital of China in the lower half of its industry. The industry median Gross Margin % is 40.25. Hospital of China's value of 16.56% is 58.9% below this benchmark. Historically, Hospital of China's own Gross Margin % has ranged from 13.20 to 62.30 over the past decade. While the company's 10-year median is 40.42 vs. the industry median of 40.25, Hospital of China has consistently been below 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.25, based on 635 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. Hospital of China's current Gross Margin % of 16.56% is 58.9% below 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 Hospital of China and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hospital of China's current Gross Margin % is 16.56%, which is 59% below median its own 10-year median of 40.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hospital of China stock overvalued right now?
Based on GuruFocus' analysis, Hospital of China (HKSE:03869) is currently considered Possible Value Trap. The stock's GF Value™ is HK$5.53, compared to a current price of HK$3.40 — trading 38.5% below its estimated fair value. The current Gross Margin % is 16.56%, which is 59% below median its 10-year median of 40.42 and 58.9% below the Healthcare Providers & Services industry median of 40.25. Hospital of China's overall GF Score™ is 73/100 with 4 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 Hospital of China (HKSE:03869), the current Gross Margin % is 16.56% 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 Hospital of China (HKSE:03869) Overvalued in 2026?
Based on GuruFocus' analysis, Hospital of China stock appears to be undervalued.
The current stock price of HK$3.40 is trading 38.5% below its estimated GF Value™ of HK$5.53.
GuruFocus considers Hospital of China to be Possible Value Trap.
Key valuation signals for HKSE:03869:
Gross Margin %: 16.56% (59% below median its 10-year median of 40.42)
GF Value™: HK$5.53 vs. price of HK$3.40 (38.5% below fair value)
Industry Position: 58.9% below the Healthcare Providers & Services median (#559 of 635)
No single metric tells the full story. See the HKSE:03869 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hospital Corporation of China Ltd is an investment holding company that operates and manages hospitals in the People's Republic of China. In addition to offering hospital management services, it also provides supply chain services, other ancillary services, and sells pharmaceutical products. The company has three operating segments, namely, Hospital management services, General hospital services, and the sale of pharmaceutical products. The General Hospital services segment is the primary revenue generator for the company. All the company's revenue is generates from PRC.
73GF Score
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