Guobang Pharma (SHSE:605507) Gross Margin %: 23.06% (As of Mar. 2026) — 16% Below Median

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SHSE:605507 Guobang Pharma Ltd SHSE:605507
88 GF Score
Price ¥16.09
GF Value ¥16.00
Valuation Fairly Valued
! 4 Warning Signs
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What is Guobang Pharma Gross Margin %?

Guobang Pharma SHSE:605507 -1.29% 88 Gross Margin % is 23.06% as of Mar. 2026, which is 16% below its 10-year median of 27.55. GuruFocus rates SHSE:605507 with a GF Score™ of 88/100 and a GF Value™ of ¥16.00 (Fairly Valued). The stock has 4 warning signs investors should review. Among 942 Drug Manufacturers companies, Guobang Pharma ranks worse than 86.52% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Guobang Pharma's Gross Profit for the three months ended in Mar. 2026 was ¥351 Mil. Guobang Pharma's Revenue for the three months ended in Mar. 2026 was ¥1,521 Mil. Therefore, Guobang Pharma's Gross Margin % for the quarter that ended in Mar. 2026 was 23.06%.

Warning Sign:

Guobang Pharma Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.7%.


The historical rank and industry rank for Guobang Pharma's Gross Margin % or its related term are showing as below:

SHSE:605507' s Gross Margin % Range Over the Past 10 Years
Min: 23.41   Med: 27.55   Max: 34.01
Current: 25.2


During the past 9 years, the highest Gross Margin % of Guobang Pharma was 34.01%. The lowest was 23.41%. And the median was 27.55%.

SHSE:605507's Gross Margin % is ranked worse than
86.52% of 942 companies
in the Drug Manufacturers industry
Industry Median: 48.54 vs SHSE:605507: 25.20

Guobang Pharma had a gross margin of 23.06% for the quarter that ended in Mar. 2026 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Guobang Pharma was -5.70% per year.


Guobang Pharma  (SHSE:605507) 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

Guobang Pharma had a gross margin of 23.06% 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.


Guobang Pharma Gross Margin % Related Terms


Guobang Pharma Gross Margin % Historical Data

* Premium members only.

The historical data trend for Guobang Pharma's Gross Margin % can be seen below:

* 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.

Guobang Pharma Gross Margin % Chart

Guobang Pharma Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 30.14 27.55 23.41 25.00 26.03

Guobang Pharma Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.44 27.23 27.00 23.51 23.06

SHSE:605507 vs ZTS: Gross Margin % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Guobang Pharma'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.


Guobang Pharma Gross Margin % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Guobang Pharma's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Guobang Pharma's Gross Margin % falls into.


SHSE:605507
88GF Score
Guobang Pharma Ltd SHSE:605507
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Guobang Pharma Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Guobang Pharma's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=1564.9 / 6011.397
=(Revenue - Cost of Goods Sold) / Revenue
=(6011.397 - 4446.532) / 6011.397
=26.03 %

Guobang Pharma's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=350.8 / 1520.88
=(Revenue - Cost of Goods Sold) / Revenue
=(1520.88 - 1170.111) / 1520.88
=23.06 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 23.06% mean?
Guobang Pharma (SHSE:605507) has a Gross Margin % of 23.06% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Guobang Pharma and its competitors. This is 16% below median its historical median of 27.55. Over the past decade, Guobang Pharma's Gross Margin % has ranged from 23.41 to 34.01. According to the industry distribution chart, Guobang Pharma ranks #815 out of 942 companies in the Drug Manufacturers industry, placing it in the top 86.5%.
Is Guobang Pharma's Gross Margin % too high?
Guobang Pharma's current Gross Margin % of 23.06% is 16% below median its 10-year median of 27.55. Over the past 10 years, this metric has ranged from a low of 23.41 to a high of 34.01. The Drug Manufacturers industry median Gross Margin % is 48.54. Guobang Pharma's value of 23.06% is 52.5% below this industry median. Based on the distribution chart, Guobang Pharma ranks #815 out of 942 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Guobang Pharma has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Guobang Pharma's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Guobang Pharma ranks #815 out of 942 companies for Gross Margin %. This places Guobang Pharma in the lower half of its industry. The industry median Gross Margin % is 48.54. Guobang Pharma's value of 23.06% is 52.5% below this benchmark. Historically, Guobang Pharma's own Gross Margin % has ranged from 23.41 to 34.01 over the past decade. While the company's 10-year median is 27.55 vs. the industry median of 48.54, Guobang Pharma 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. Guobang Pharma's current Gross Margin % of 23.06% is 52.5% 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 Guobang Pharma 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. Guobang Pharma's current Gross Margin % is 23.06%, which is 16% below median its own 10-year median of 27.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guobang Pharma stock overvalued right now?
Based on GuruFocus' analysis, Guobang Pharma (SHSE:605507) is currently considered Fairly Valued. The stock's GF Value™ is ¥16.00, compared to a current price of ¥16.09 — trading 0.6% above its estimated fair value. The current Gross Margin % is 23.06%, which is 16% below median its 10-year median of 27.55 and 52.5% below the Drug Manufacturers industry median of 48.54. Guobang Pharma's overall GF Score™ is 88/100 with 4 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 Guobang Pharma (SHSE:605507), the current Gross Margin % is 23.06% 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 Guobang Pharma (SHSE:605507) Overvalued in 2026?

Based on GuruFocus' analysis, Guobang Pharma stock appears to be overvalued. The current stock price of ¥16.09 is trading 0.6% above its estimated GF Value™ of ¥16.00. GuruFocus considers Guobang Pharma to be Fairly Valued.

Key valuation signals for SHSE:605507:

  • Gross Margin %: 23.06% (16% below median its 10-year median of 27.55)
  • GF Value™: ¥16.00 vs. price of ¥16.09 (0.6% above fair value)
  • GF Score™: 88/100 with 4 warning signs
  • Industry Position: 52.5% below the Drug Manufacturers median (#815 of 942)

No single metric tells the full story. See the SHSE:605507 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Guobang Pharma Business Description

Address No. 60, Xingmei Avenue, Provincial High-tech Industrial Park, Zhejiang Province, Xinchang, CHN, 312500
Guobang Pharma Ltd is engaged in the research and development, production and sales of related products in the field of medicine and animal health products.
88GF Score

Get the complete analysis for SHSE:605507

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥16.09
Price
¥16.00
GF Value