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SHSE:600513's Gross Margin % is ranked worse than 78.96% of 941
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs SHSE:600513: 31.03
Jiangsu Lianhuan Pharmaceutical Co had a gross margin of 26.52% for the quarter that ended in Mar. 2026 => Competition eroding margins
Jiangsu Lianhuan Pharmaceutical Co (SHSE:600513) 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
Jiangsu Lianhuan Pharmaceutical Co had a gross margin of 26.52% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Jiangsu Lianhuan Pharmaceutical Co Gross Margin % Related Terms
Jiangsu Lianhuan Pharmaceutical 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.
Jiangsu Lianhuan Pharmaceutical Co Gross Margin % Chart
SHSE:600513 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Jiangsu Lianhuan Pharmaceutical 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.
Jiangsu Lianhuan Pharmaceutical Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Jiangsu Lianhuan Pharmaceutical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Jiangsu Lianhuan Pharmaceutical 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.
Jiangsu Lianhuan Pharmaceutical Co (SHSE:600513) has a Gross Margin % of 26.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Jiangsu Lianhuan Pharmaceutical Co and its competitors. This is 51% below median its historical median of 54.24. Over the past decade, Jiangsu Lianhuan Pharmaceutical Co's Gross Margin % has ranged from 31.03 to 68.92. According to the industry distribution chart, Jiangsu Lianhuan Pharmaceutical Co ranks #743 out of 941 companies in the Drug Manufacturers industry, placing it in the top 79%.
Is Jiangsu Lianhuan Pharmaceutical Co's Gross Margin % too high?
Jiangsu Lianhuan Pharmaceutical Co's current Gross Margin % of 26.52% is 51% below median its 10-year median of 54.24. Over the past 10 years, this metric has ranged from a low of 31.03 to a high of 68.92. The Drug Manufacturers industry median Gross Margin % is 48.54. Jiangsu Lianhuan Pharmaceutical Co's value of 26.52% is 45.4% below this industry median. Based on the distribution chart, Jiangsu Lianhuan Pharmaceutical Co ranks #743 out of 941 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Jiangsu Lianhuan Pharmaceutical Co has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Lianhuan Pharmaceutical Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Jiangsu Lianhuan Pharmaceutical Co ranks #743 out of 941 companies for Gross Margin %. This places Jiangsu Lianhuan Pharmaceutical Co in the lower half of its industry. The industry median Gross Margin % is 48.54. Jiangsu Lianhuan Pharmaceutical Co's value of 26.52% is 45.4% below this benchmark. Historically, Jiangsu Lianhuan Pharmaceutical Co's own Gross Margin % has ranged from 31.03 to 68.92 over the past decade. While the company's 10-year median is 54.24 vs. the industry median of 48.54, Jiangsu Lianhuan Pharmaceutical 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 941 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. Jiangsu Lianhuan Pharmaceutical Co's current Gross Margin % of 26.52% is 45.4% 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 Jiangsu Lianhuan Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Lianhuan Pharmaceutical Co's current Gross Margin % is 26.52%, which is 51% below median its own 10-year median of 54.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Lianhuan Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Lianhuan Pharmaceutical Co (SHSE:600513) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥13.72, compared to a current price of ¥15.42 — trading 12.4% above its estimated fair value. The current Gross Margin % is 26.52%, which is 51% below median its 10-year median of 54.24 and 45.4% below the Drug Manufacturers industry median of 48.54. Jiangsu Lianhuan Pharmaceutical Co's overall GF Score™ is 65/100 with 10 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 Jiangsu Lianhuan Pharmaceutical Co (SHSE:600513), the current Gross Margin % is 26.52% 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 Jiangsu Lianhuan Pharmaceutical Co (SHSE:600513) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Lianhuan Pharmaceutical Co stock appears to be overvalued.
The current stock price of ¥15.42 is trading 12.4% above its estimated GF Value™ of ¥13.72.
GuruFocus considers Jiangsu Lianhuan Pharmaceutical Co to be Modestly Overvalued.
Key valuation signals for SHSE:600513:
Gross Margin %: 26.52% (51% below median its 10-year median of 54.24)
GF Value™: ¥13.72 vs. price of ¥15.42 (12.4% above fair value)
Industry Position: 45.4% below the Drug Manufacturers median (#743 of 941)
No single metric tells the full story. See the SHSE:600513 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Lianhuan Pharmaceutical Co Business Description
Jiangsu Lianhuan Pharmaceutical Co Ltd is engaged in producing benign prostatic hyperplasia, allergy and cardiovascular drugs. In the field of pharmaceutical manufacturing, the company's main products include several series such as urinary system drugs, antihistamines, cardiovascular drugs, steroid hormones, antibiotics, etc., covering chemical raw materials and injections, solid preparations and various drug dosage forms, including the national first-class new drug Apelite Tablets (Chuanliu).
65GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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