SHSE:600671's Gross Margin % is ranked better than 53.45% of 943
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs SHSE:600671: 51.04
Hangzhou TianMuShan Pharmaceutical Enterprise Co had a gross margin of 54.75% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) 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
Hangzhou TianMuShan Pharmaceutical Enterprise Co had a gross margin of 54.75% 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co Gross Margin % Related Terms
Hangzhou TianMuShan Pharmaceutical Enterprise 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co Gross Margin % Chart
Hangzhou TianMuShan Pharmaceutical Enterprise Co Annual Data
SHSE:600671 vs LLY, JNJ, ABBV: Gross Margin % Comparison
For the Drug Manufacturers - General subindustry, Hangzhou TianMuShan Pharmaceutical Enterprise 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co Gross Margin % vs Drug Manufacturers Industry
* 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) has a Gross Margin % of 54.75% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hangzhou TianMuShan Pharmaceutical Enterprise Co and its competitors. This is 42% above median its historical median of 38.66. Over the past decade, Hangzhou TianMuShan Pharmaceutical Enterprise Co's Gross Margin % has ranged from 21.79 to 51.04. According to the industry distribution chart, Hangzhou TianMuShan Pharmaceutical Enterprise Co ranks #439 out of 943 companies in the Drug Manufacturers industry, placing it in the top 46.6%.
Is Hangzhou TianMuShan Pharmaceutical Enterprise Co's Gross Margin % too high?
Hangzhou TianMuShan Pharmaceutical Enterprise Co's current Gross Margin % of 54.75% is 42% above median its 10-year median of 38.66. Over the past 10 years, this metric has ranged from a low of 21.79 to a high of 51.04. The Drug Manufacturers industry median Gross Margin % is 48.54. Hangzhou TianMuShan Pharmaceutical Enterprise Co's value of 54.75% is 12.8% above this industry median. Based on the distribution chart, Hangzhou TianMuShan Pharmaceutical Enterprise Co ranks #439 out of 943 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Hangzhou TianMuShan Pharmaceutical Enterprise Co has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou TianMuShan Pharmaceutical Enterprise Co's Gross Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Hangzhou TianMuShan Pharmaceutical Enterprise Co ranks #439 out of 943 companies for Gross Margin %. This puts Hangzhou TianMuShan Pharmaceutical Enterprise Co in the upper half of its industry. The industry median Gross Margin % is 48.54. Hangzhou TianMuShan Pharmaceutical Enterprise Co's value of 54.75% is 12.8% above this benchmark. Historically, Hangzhou TianMuShan Pharmaceutical Enterprise Co's own Gross Margin % has ranged from 21.79 to 51.04 over the past decade. While the company's 10-year median is 38.66 vs. the industry median of 48.54, Hangzhou TianMuShan Pharmaceutical Enterprise 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 48.54, based on 943 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. Hangzhou TianMuShan Pharmaceutical Enterprise Co's current Gross Margin % of 54.75% is 12.8% 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 Hangzhou TianMuShan Pharmaceutical Enterprise 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. Hangzhou TianMuShan Pharmaceutical Enterprise Co's current Gross Margin % is 54.75%, which is 42% above median its own 10-year median of 38.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou TianMuShan Pharmaceutical Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥14.96, compared to a current price of ¥21.13 — trading 41.2% above its estimated fair value. The current Gross Margin % is 54.75%, which is 42% above median its 10-year median of 38.66 and 12.8% above the Drug Manufacturers industry median of 48.54. Hangzhou TianMuShan Pharmaceutical Enterprise Co's overall GF Score™ is 54/100 with 8 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 Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671), the current Gross Margin % is 54.75% 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 Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou TianMuShan Pharmaceutical Enterprise Co stock appears to be overvalued.
The current stock price of ¥21.13 is trading 41.2% above its estimated GF Value™ of ¥14.96.
GuruFocus considers Hangzhou TianMuShan Pharmaceutical Enterprise Co to be Significantly Overvalued.
Key valuation signals for SHSE:600671:
Gross Margin %: 54.75% (42% above median its 10-year median of 38.66)
GF Value™: ¥14.96 vs. price of ¥21.13 (41.2% above fair value)
Industry Position: 12.8% above the Drug Manufacturers median (#439 of 943)
No single metric tells the full story. See the SHSE:600671 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou TianMuShan Pharmaceutical Enterprise Co Business Description
Hangzhou TianMuShan Pharmaceutical Enterprise Co Ltd is engaged in producing proprietary Chinese medicines, biopharmaceuticals, healthy foods, medical equipment, and other medicines in China.
54GF Score
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