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SHSE:600867's Gross Margin % is ranked better than 82.47% of 941
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs SHSE:600867: 70.86
Tonghua Dongbao Pharmaceutical Co had a gross margin of 71.62% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Tonghua Dongbao Pharmaceutical Co (SHSE:600867) 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
Tonghua Dongbao Pharmaceutical Co had a gross margin of 71.62% 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.
Tonghua Dongbao Pharmaceutical Co Gross Margin % Related Terms
Tonghua Dongbao 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.
Tonghua Dongbao Pharmaceutical Co Gross Margin % Chart
SHSE:600867 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Tonghua Dongbao 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.
Tonghua Dongbao Pharmaceutical Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Tonghua Dongbao Pharmaceutical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tonghua Dongbao 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.
Tonghua Dongbao Pharmaceutical Co (SHSE:600867) has a Gross Margin % of 71.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tonghua Dongbao Pharmaceutical Co and its competitors. This is near median its historical median of 75.29. Over the past decade, Tonghua Dongbao Pharmaceutical Co's Gross Margin % has ranged from 70.33 to 82.38. According to the industry distribution chart, Tonghua Dongbao Pharmaceutical Co ranks #165 out of 941 companies in the Drug Manufacturers industry, placing it in the top 17.5%.
Is Tonghua Dongbao Pharmaceutical Co's Gross Margin % too high?
Tonghua Dongbao Pharmaceutical Co's current Gross Margin % of 71.62% is near median its 10-year median of 75.29. Over the past 10 years, this metric has ranged from a low of 70.33 to a high of 82.38. The Drug Manufacturers industry median Gross Margin % is 48.54. Tonghua Dongbao Pharmaceutical Co's value of 71.62% is 47.5% above this industry median. Based on the distribution chart, Tonghua Dongbao Pharmaceutical Co ranks #165 out of 941 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Tonghua Dongbao Pharmaceutical Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tonghua Dongbao Pharmaceutical Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Tonghua Dongbao Pharmaceutical Co ranks #165 out of 941 companies for Gross Margin %. This places Tonghua Dongbao Pharmaceutical Co in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.54. Tonghua Dongbao Pharmaceutical Co's value of 71.62% is 47.5% above this benchmark. Historically, Tonghua Dongbao Pharmaceutical Co's own Gross Margin % has ranged from 70.33 to 82.38 over the past decade. While the company's 10-year median is 75.29 vs. the industry median of 48.54, Tonghua Dongbao Pharmaceutical 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 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. Tonghua Dongbao Pharmaceutical Co's current Gross Margin % of 71.62% is 47.5% 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 Tonghua Dongbao 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. Tonghua Dongbao Pharmaceutical Co's current Gross Margin % is 71.62%, which is near median its own 10-year median of 75.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tonghua Dongbao Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Tonghua Dongbao Pharmaceutical Co (SHSE:600867) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.28, compared to a current price of ¥8.17 — trading 20.5% below its estimated fair value. The current Gross Margin % is 71.62%, which is near median its 10-year median of 75.29 and 47.5% above the Drug Manufacturers industry median of 48.54. Tonghua Dongbao Pharmaceutical Co's overall GF Score™ is 83/100 with 6 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 Tonghua Dongbao Pharmaceutical Co (SHSE:600867), the current Gross Margin % is 71.62% 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 Tonghua Dongbao Pharmaceutical Co (SHSE:600867) Overvalued in 2026?
Based on GuruFocus' analysis, Tonghua Dongbao Pharmaceutical Co stock appears to be undervalued.
The current stock price of ¥8.17 is trading 20.5% below its estimated GF Value™ of ¥10.28.
GuruFocus considers Tonghua Dongbao Pharmaceutical Co to be Modestly Undervalued.
Key valuation signals for SHSE:600867:
Gross Margin %: 71.62% (near median its 10-year median of 75.29)
GF Value™: ¥10.28 vs. price of ¥8.17 (20.5% below fair value)
Industry Position: 47.5% above the Drug Manufacturers median (#165 of 941)
No single metric tells the full story. See the SHSE:600867 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tonghua Dongbao Pharmaceutical Co Business Description
Tonghua Dongbao Pharmaceutical Co Ltd is a China-based firm. Its engaged in the production and distribution of pharmaceutical products. Its products include human insulin injection, Heart and brain capsule, Vitamin e soft capsule, and Oral detoxification products.
83GF Score
Get the complete analysis for SHSE:600867
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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