Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Kangmei Pharmaceutical CoSHSE:600518 48 Gross Margin % is 22.07% as of Mar. 2026, which is 33% above its 10-year median of 16.56. GuruFocus rates SHSE:600518 with a GF Score™ of 48/100 and a GF Value™ of ¥1.46 (Fairly Valued). The stock has 2 warning signs investors should review. Among 942 Drug Manufacturers companies, Kangmei Pharmaceutical Co ranks worse than 90.34% on this metric.
SHSE:600518's Gross Margin % is ranked worse than 90.34% of 942
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs SHSE:600518: 20.90
Kangmei Pharmaceutical Co had a gross margin of 22.07% for the quarter that ended in Mar. 2026 => Competition eroding margins
Kangmei Pharmaceutical Co (SHSE:600518) 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
Kangmei Pharmaceutical Co had a gross margin of 22.07% 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.
Kangmei Pharmaceutical Co Gross Margin % Related Terms
Kangmei 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Kangmei 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.
Kangmei Pharmaceutical Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Kangmei Pharmaceutical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kangmei 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.
Kangmei Pharmaceutical Co (SHSE:600518) has a Gross Margin % of 22.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kangmei Pharmaceutical Co and its competitors. This is 33% above median its historical median of 16.56. Over the past decade, Kangmei Pharmaceutical Co's Gross Margin % has ranged from 3.43 to 38.63. According to the industry distribution chart, Kangmei Pharmaceutical Co ranks #851 out of 942 companies in the Drug Manufacturers industry, placing it in the top 90.3%.
Is Kangmei Pharmaceutical Co's Gross Margin % too high?
Kangmei Pharmaceutical Co's current Gross Margin % of 22.07% is 33% above median its 10-year median of 16.56. Over the past 10 years, this metric has ranged from a low of 3.43 to a high of 38.63. The Drug Manufacturers industry median Gross Margin % is 48.54. Kangmei Pharmaceutical Co's value of 22.07% is 54.5% below this industry median. Based on the distribution chart, Kangmei Pharmaceutical Co ranks #851 out of 942 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Kangmei Pharmaceutical Co has a GF Score™ of 48/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kangmei Pharmaceutical Co's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Kangmei Pharmaceutical Co ranks #851 out of 942 companies for Gross Margin %. This places Kangmei Pharmaceutical Co in the lower half of its industry. The industry median Gross Margin % is 48.54. Kangmei Pharmaceutical Co's value of 22.07% is 54.5% below this benchmark. Historically, Kangmei Pharmaceutical Co's own Gross Margin % has ranged from 3.43 to 38.63 over the past decade. While the company's 10-year median is 16.56 vs. the industry median of 48.54, Kangmei 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 942 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. Kangmei Pharmaceutical Co's current Gross Margin % of 22.07% is 54.5% 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 Kangmei 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. Kangmei Pharmaceutical Co's current Gross Margin % is 22.07%, which is 33% above median its own 10-year median of 16.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kangmei Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Kangmei Pharmaceutical Co (SHSE:600518) is currently considered Fairly Valued. The stock's GF Value™ is ¥1.46, compared to a current price of ¥1.35 — trading 7.5% below its estimated fair value. The current Gross Margin % is 22.07%, which is 33% above median its 10-year median of 16.56 and 54.5% below the Drug Manufacturers industry median of 48.54. Kangmei Pharmaceutical Co's overall GF Score™ is 48/100 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 Kangmei Pharmaceutical Co (SHSE:600518), the current Gross Margin % is 22.07% 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 Kangmei Pharmaceutical Co (SHSE:600518) Overvalued in 2026?
Based on GuruFocus' analysis, Kangmei Pharmaceutical Co stock appears to be undervalued.
The current stock price of ¥1.35 is trading 7.5% below its estimated GF Value™ of ¥1.46.
GuruFocus considers Kangmei Pharmaceutical Co to be Fairly Valued.
Key valuation signals for SHSE:600518:
Gross Margin %: 22.07% (33% above median its 10-year median of 16.56)
GF Value™: ¥1.46 vs. price of ¥1.35 (7.5% below fair value)
Industry Position: 54.5% below the Drug Manufacturers median (#851 of 942)
No single metric tells the full story. See the SHSE:600518 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kangmei Pharmaceutical Co Ltd is a pharmaceutical company engaged in the trading of Chinese herbal medicines, production and sales of Chinese herbal medicine slices, Chinese patent medicine preparations, health foods, chemical drugs, and medical devices, modern pharmaceutical logistics system. The company is also engaged in medical equipment, property leasing and sales, and other services.
48GF Score
Get the complete analysis for SHSE:600518
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:600518 has been successfully added to your 
