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SHSE:603811's Gross Margin % is ranked better than 81.42% of 942
companies
in the Drug Manufacturers industry
Industry Median: 48.5
vs SHSE:603811: 70.02
Zhejiang Cheng Yi Pharmaceutical Co had a gross margin of 69.96% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Zhejiang Cheng Yi Pharmaceutical Co (SHSE:603811) 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
Zhejiang Cheng Yi Pharmaceutical Co had a gross margin of 69.96% 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.
Zhejiang Cheng Yi Pharmaceutical Co Gross Margin % Related Terms
Zhejiang Cheng Yi 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.
Zhejiang Cheng Yi Pharmaceutical Co Gross Margin % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Zhejiang Cheng Yi 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.
Zhejiang Cheng Yi Pharmaceutical Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zhejiang Cheng Yi Pharmaceutical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiang Cheng Yi 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.
Zhejiang Cheng Yi Pharmaceutical Co (SHSE:603811) has a Gross Margin % of 69.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhejiang Cheng Yi Pharmaceutical Co and its competitors. This is near median its historical median of 68.98. Over the past decade, Zhejiang Cheng Yi Pharmaceutical Co's Gross Margin % has ranged from 51.11 to 73.85. According to the industry distribution chart, Zhejiang Cheng Yi Pharmaceutical Co ranks #175 out of 942 companies in the Drug Manufacturers industry, placing it in the top 18.6%.
Is Zhejiang Cheng Yi Pharmaceutical Co's Gross Margin % too high?
Zhejiang Cheng Yi Pharmaceutical Co's current Gross Margin % of 69.96% is near median its 10-year median of 68.98. Over the past 10 years, this metric has ranged from a low of 51.11 to a high of 73.85. The Drug Manufacturers industry median Gross Margin % is 48.50. Zhejiang Cheng Yi Pharmaceutical Co's value of 69.96% is 44.2% above this industry median. Based on the distribution chart, Zhejiang Cheng Yi Pharmaceutical Co ranks #175 out of 942 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Zhejiang Cheng Yi Pharmaceutical Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Cheng Yi Pharmaceutical Co's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zhejiang Cheng Yi Pharmaceutical Co ranks #175 out of 942 companies for Gross Margin %. This places Zhejiang Cheng Yi Pharmaceutical Co in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.50. Zhejiang Cheng Yi Pharmaceutical Co's value of 69.96% is 44.2% above this benchmark. Historically, Zhejiang Cheng Yi Pharmaceutical Co's own Gross Margin % has ranged from 51.11 to 73.85 over the past decade. While the company's 10-year median is 68.98 vs. the industry median of 48.50, Zhejiang Cheng Yi 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 48.50, 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. Zhejiang Cheng Yi Pharmaceutical Co's current Gross Margin % of 69.96% is 44.2% 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 Zhejiang Cheng Yi Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Cheng Yi Pharmaceutical Co's current Gross Margin % is 69.96%, which is near median its own 10-year median of 68.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Cheng Yi Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Cheng Yi Pharmaceutical Co (SHSE:603811) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥8.45, compared to a current price of ¥7.43 — trading 12.1% below its estimated fair value. The current Gross Margin % is 69.96%, which is near median its 10-year median of 68.98 and 44.2% above the Drug Manufacturers industry median of 48.50. Zhejiang Cheng Yi Pharmaceutical Co's overall GF Score™ is 85/100 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 Zhejiang Cheng Yi Pharmaceutical Co (SHSE:603811), the current Gross Margin % is 69.96% 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 Zhejiang Cheng Yi Pharmaceutical Co (SHSE:603811) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Cheng Yi Pharmaceutical Co stock appears to be undervalued.
The current stock price of ¥7.43 is trading 12.1% below its estimated GF Value™ of ¥8.45.
GuruFocus considers Zhejiang Cheng Yi Pharmaceutical Co to be Modestly Undervalued.
Key valuation signals for SHSE:603811:
Gross Margin %: 69.96% (near median its 10-year median of 68.98)
GF Value™: ¥8.45 vs. price of ¥7.43 (12.1% below fair value)
Industry Position: 44.2% above the Drug Manufacturers median (#175 of 942)
No single metric tells the full story. See the SHSE:603811 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Cheng Yi Pharmaceutical Co Ltd is a pharmaceutical company that produces capsules, injections, tablets, APIs, and pharmaceutical intermediates in China. Its main products include glucosamine hydrochloride raw materials and preparations, torasemide injection and capsules, Gastrodin raw materials, ribavirin and purine raw materials, and so on.
85GF Score
Get the complete analysis for SHSE:603811
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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