SHSE:600059's Gross Margin % is ranked worse than 59.02% of 205
companies
in the Beverages - Alcoholic industry
Industry Median: 42.2
vs SHSE:600059: 38.61
Zhejiang Guyuelongshan Shaoxing Wine Co had a gross margin of 40.31% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Zhejiang Guyuelongshan Shaoxing Wine Co (SHSE:600059) 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
Zhejiang Guyuelongshan Shaoxing Wine Co had a gross margin of 40.31% 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.
Zhejiang Guyuelongshan Shaoxing Wine Co Gross Margin % Related Terms
Zhejiang Guyuelongshan Shaoxing Wine 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.
Zhejiang Guyuelongshan Shaoxing Wine Co Gross Margin % Chart
Zhejiang Guyuelongshan Shaoxing Wine Co Annual Data
For the Beverages - Wineries & Distilleries subindustry, Zhejiang Guyuelongshan Shaoxing Wine 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.
Zhejiang Guyuelongshan Shaoxing Wine Co Gross Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Zhejiang Guyuelongshan Shaoxing Wine Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiang Guyuelongshan Shaoxing Wine 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.
Zhejiang Guyuelongshan Shaoxing Wine Co (SHSE:600059) has a Gross Margin % of 40.31% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhejiang Guyuelongshan Shaoxing Wine Co and its competitors. This is 10% above median its historical median of 36.64. Over the past decade, Zhejiang Guyuelongshan Shaoxing Wine Co's Gross Margin % has ranged from 34.88 to 42.29. According to the industry distribution chart, Zhejiang Guyuelongshan Shaoxing Wine Co ranks #121 out of 205 companies in the Beverages - Alcoholic industry, placing it in the top 59%.
Is Zhejiang Guyuelongshan Shaoxing Wine Co's Gross Margin % too high?
Zhejiang Guyuelongshan Shaoxing Wine Co's current Gross Margin % of 40.31% is 10% above median its 10-year median of 36.64. Over the past 10 years, this metric has ranged from a low of 34.88 to a high of 42.29. The Beverages - Alcoholic industry median Gross Margin % is 42.20. Zhejiang Guyuelongshan Shaoxing Wine Co's value of 40.31% is 4.5% below this industry median. Based on the distribution chart, Zhejiang Guyuelongshan Shaoxing Wine Co ranks #121 out of 205 companies in the Beverages - Alcoholic industry, which is below the industry midpoint. Overall, Zhejiang Guyuelongshan Shaoxing Wine Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Guyuelongshan Shaoxing Wine Co's Gross Margin % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Zhejiang Guyuelongshan Shaoxing Wine Co ranks #121 out of 205 companies for Gross Margin %. This places Zhejiang Guyuelongshan Shaoxing Wine Co in the lower half of its industry. The industry median Gross Margin % is 42.20. Zhejiang Guyuelongshan Shaoxing Wine Co's value of 40.31% is 4.5% below this benchmark. Historically, Zhejiang Guyuelongshan Shaoxing Wine Co's own Gross Margin % has ranged from 34.88 to 42.29 over the past decade. While the company's 10-year median is 36.64 vs. the industry median of 42.20, Zhejiang Guyuelongshan Shaoxing Wine Co 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 Beverages - Alcoholic company?
The median Gross Margin % among Beverages - Alcoholic companies is 42.20, based on 205 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. Zhejiang Guyuelongshan Shaoxing Wine Co's current Gross Margin % of 40.31% is 4.5% 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 Zhejiang Guyuelongshan Shaoxing Wine Co and its competitors. For the Beverages - Alcoholic industry, the median Gross Margin % is 42.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Guyuelongshan Shaoxing Wine Co's current Gross Margin % is 40.31%, which is 10% above median its own 10-year median of 36.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Guyuelongshan Shaoxing Wine Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Guyuelongshan Shaoxing Wine Co (SHSE:600059) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥9.56, compared to a current price of ¥7.51 — trading 21.4% below its estimated fair value. The current Gross Margin % is 40.31%, which is 10% above median its 10-year median of 36.64 and 4.5% below the Beverages - Alcoholic industry median of 42.20. Zhejiang Guyuelongshan Shaoxing Wine Co's overall GF Score™ is 76/100 with 3 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 Zhejiang Guyuelongshan Shaoxing Wine Co (SHSE:600059), the current Gross Margin % is 40.31% 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 Zhejiang Guyuelongshan Shaoxing Wine Co (SHSE:600059) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Guyuelongshan Shaoxing Wine Co stock appears to be undervalued.
The current stock price of ¥7.51 is trading 21.4% below its estimated GF Value™ of ¥9.56.
GuruFocus considers Zhejiang Guyuelongshan Shaoxing Wine Co to be Modestly Undervalued.
Key valuation signals for SHSE:600059:
Gross Margin %: 40.31% (10% above median its 10-year median of 36.64)
GF Value™: ¥9.56 vs. price of ¥7.51 (21.4% below fair value)
Industry Position: 4.5% below the Beverages - Alcoholic median (#121 of 205)
No single metric tells the full story. See the SHSE:600059 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Guyuelongshan Shaoxing Wine Co Business Description
Zhejiang Guyuelongshan Shaoxing Wine Co Ltd is a China-based company engaged in the production and distribution of Chinese rice wine. Its main products consist of raw Chinese rice wine, bottled Chinese rice wine and a relatively small amount of fruit wine and distilled spirit. The company owns a range of brands including Gu Yue Long Shan, Nv Er Hong, Champion Red, Shen Yonghe as well as Jian Hu, among others.
76GF Score
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