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Sunshine Lake Pharma CoHKSE:06887 +1.87%15 Gross Margin % is 77.08% as of Dec. 2025, which is 1% above its 10-year median of 76.59. GuruFocus rates HKSE:06887 with a GF Score™ of 15/100. The stock has 2 warning signs investors should review. Among 938 Drug Manufacturers companies, Sunshine Lake Pharma Co ranks better than 88.81% on this metric.
HKSE:06887's Gross Margin % is ranked better than 88.81% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs HKSE:06887: 76.54
Sunshine Lake Pharma Co had a gross margin of 77.08% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sunshine Lake Pharma Co was 0.00% per year.
Sunshine Lake Pharma Co (HKSE:06887) 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
Sunshine Lake Pharma Co had a gross margin of 77.08% 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.
Sunshine Lake Pharma Co Gross Margin % Related Terms
Sunshine Lake Pharma Co 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, Sunshine Lake Pharma Co'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.
Sunshine Lake Pharma Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sunshine Lake Pharma Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sunshine Lake Pharma Co'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.
Sunshine Lake Pharma Co (HKSE:06887) has a Gross Margin % of 77.08% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Sunshine Lake Pharma Co and its competitors. This is near median its historical median of 76.59. Over the past decade, Sunshine Lake Pharma Co's Gross Margin % has ranged from 76.11 to 79.51. According to the industry distribution chart, Sunshine Lake Pharma Co ranks #105 out of 938 companies in the Drug Manufacturers industry, placing it in the top 11.2%.
Is Sunshine Lake Pharma Co's Gross Margin % too high?
Sunshine Lake Pharma Co's current Gross Margin % of 77.08% is near median its 10-year median of 76.59. Over the past 10 years, this metric has ranged from a low of 76.11 to a high of 79.51. The Drug Manufacturers industry median Gross Margin % is 48.44. Sunshine Lake Pharma Co's value of 77.08% is 59.1% above this industry median. Based on the distribution chart, Sunshine Lake Pharma Co ranks #105 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Sunshine Lake Pharma Co has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Sunshine Lake Pharma Co's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Sunshine Lake Pharma Co ranks #105 out of 938 companies for Gross Margin %. This places Sunshine Lake Pharma Co in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Sunshine Lake Pharma Co's value of 77.08% is 59.1% above this benchmark. Historically, Sunshine Lake Pharma Co's own Gross Margin % has ranged from 76.11 to 79.51 over the past decade. While the company's 10-year median is 76.59 vs. the industry median of 48.44, Sunshine Lake Pharma Co 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 48.44, 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. Sunshine Lake Pharma Co's current Gross Margin % of 77.08% is 59.1% 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 Sunshine Lake Pharma Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunshine Lake Pharma Co's current Gross Margin % is 77.08%, which is near median its own 10-year median of 76.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunshine Lake Pharma Co stock overvalued right now?
Sunshine Lake Pharma Co (HKSE:06887) has a current Gross Margin % of 77.08%. The current Gross Margin % is 77.08%, which is near median its 10-year median of 76.59 and 59.1% above the Drug Manufacturers industry median of 48.44. Sunshine Lake Pharma Co's overall GF Score™ is 15/100 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 Sunshine Lake Pharma Co (HKSE:06887), the current Gross Margin % is 77.08% 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.
Sunshine Lake Pharma Co Ltd is a vertically integrated pharmaceutical company principally engaged in the research and development, manufacturing and sales of pharmaceuticals. It is focused on therapeutic areas of infectious diseases, chronic diseases and oncology. The company's revenue is mainly derived from sales of pharmaceutical products to distributors in the PRC.
15GF Score
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