Zhongzhu Healthcare Holding CoSHSE:600568 -0.42%49 Gross Margin % is 8.93% as of Mar. 2026, which is 65% below its 10-year median of 25.21. GuruFocus rates SHSE:600568 with a GF Score™ of 49/100 and a GF Value™ of ¥1.88 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 938 Drug Manufacturers companies, Zhongzhu Healthcare Holding Co ranks worse than 93.07% on this metric.
SHSE:600568's Gross Margin % is ranked worse than 93.07% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs SHSE:600568: 16.43
Zhongzhu Healthcare Holding Co had a gross margin of 8.93% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Zhongzhu Healthcare Holding Co (SHSE:600568) 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
Zhongzhu Healthcare Holding Co had a gross margin of 8.93% for the quarter that ended in Mar. 2026 => 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.
Zhongzhu Healthcare Holding Co Gross Margin % Related Terms
Zhongzhu Healthcare Holding 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.
Zhongzhu Healthcare Holding Co Gross Margin % Chart
SHSE:600568 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zhongzhu Healthcare Holding 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.
Zhongzhu Healthcare Holding Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zhongzhu Healthcare Holding Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhongzhu Healthcare Holding 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.
Zhongzhu Healthcare Holding Co (SHSE:600568) has a Gross Margin % of 8.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhongzhu Healthcare Holding Co and its competitors. This is 65% below median its historical median of 25.21. Over the past decade, Zhongzhu Healthcare Holding Co's Gross Margin % has ranged from 12.76 to 47.63. According to the industry distribution chart, Zhongzhu Healthcare Holding Co ranks #873 out of 938 companies in the Drug Manufacturers industry, placing it in the top 93.1%.
Is Zhongzhu Healthcare Holding Co's Gross Margin % too high?
Zhongzhu Healthcare Holding Co's current Gross Margin % of 8.93% is 65% below median its 10-year median of 25.21. Over the past 10 years, this metric has ranged from a low of 12.76 to a high of 47.63. The Drug Manufacturers industry median Gross Margin % is 48.54. Zhongzhu Healthcare Holding Co's value of 8.93% is 81.6% below this industry median. Based on the distribution chart, Zhongzhu Healthcare Holding Co ranks #873 out of 938 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Zhongzhu Healthcare Holding Co has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhongzhu Healthcare Holding Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Zhongzhu Healthcare Holding Co ranks #873 out of 938 companies for Gross Margin %. This places Zhongzhu Healthcare Holding Co in the lower half of its industry. The industry median Gross Margin % is 48.54. Zhongzhu Healthcare Holding Co's value of 8.93% is 81.6% below this benchmark. Historically, Zhongzhu Healthcare Holding Co's own Gross Margin % has ranged from 12.76 to 47.63 over the past decade. While the company's 10-year median is 25.21 vs. the industry median of 48.54, Zhongzhu Healthcare Holding 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 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. Zhongzhu Healthcare Holding Co's current Gross Margin % of 8.93% is 81.6% 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 Zhongzhu Healthcare Holding 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. Zhongzhu Healthcare Holding Co's current Gross Margin % is 8.93%, which is 65% below median its own 10-year median of 25.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongzhu Healthcare Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Zhongzhu Healthcare Holding Co (SHSE:600568) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥1.88, compared to a current price of ¥2.36 — trading 25.5% above its estimated fair value. The current Gross Margin % is 8.93%, which is 65% below median its 10-year median of 25.21 and 81.6% below the Drug Manufacturers industry median of 48.54. Zhongzhu Healthcare Holding Co's overall GF Score™ is 49/100 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 Zhongzhu Healthcare Holding Co (SHSE:600568), the current Gross Margin % is 8.93% 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 Zhongzhu Healthcare Holding Co (SHSE:600568) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongzhu Healthcare Holding Co stock appears to be overvalued.
The current stock price of ¥2.36 is trading 25.5% above its estimated GF Value™ of ¥1.88.
GuruFocus considers Zhongzhu Healthcare Holding Co to be Modestly Overvalued.
Key valuation signals for SHSE:600568:
Gross Margin %: 8.93% (65% below median its 10-year median of 25.21)
GF Value™: ¥1.88 vs. price of ¥2.36 (25.5% above fair value)
Industry Position: 81.6% below the Drug Manufacturers median (#873 of 938)
No single metric tells the full story. See the SHSE:600568 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongzhu Healthcare Holding Co Business Description
Zhongzhu Healthcare Holding Co Ltd produces and sells ophthalmic, antiviral, and anti-infective drugs in China. Its products include eye and nasal drops, injections, solid preparations, and other products. The product consists of Pearl Eye Drops, Sodium Cromolyn Eye Drops, Acyclovir Eye Drops, Hydroxybenzazole Hydrochloride Eye Drops, Acyclovir Dispersible Tablets, Gatifloxacin Tablets.
49GF 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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