Sunshine Guojian Pharmaceutical (Shanghai) Co (SHSE:688336) 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
Sunshine Guojian Pharmaceutical (Shanghai) Co had a gross margin of 80.71% 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.
Sunshine Guojian Pharmaceutical (Shanghai) Co Gross Margin % Related Terms
Sunshine Guojian Pharmaceutical (Shanghai) 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.
Sunshine Guojian Pharmaceutical (Shanghai) Co Gross Margin % Chart
Sunshine Guojian Pharmaceutical (Shanghai) Co Annual Data
SHSE:688336 vs VRTX, REGN, ALNY: Gross Margin % Comparison
For the Biotechnology subindustry, Sunshine Guojian Pharmaceutical (Shanghai) 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.
Sunshine Guojian Pharmaceutical (Shanghai) Co Gross Margin % vs Biotechnology 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.
Sunshine Guojian Pharmaceutical (Shanghai) Co (SHSE:688336) has a Gross Margin % of 80.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sunshine Guojian Pharmaceutical (Shanghai) Co and its competitors. This is near median its historical median of 85.99. Over the past decade, Sunshine Guojian Pharmaceutical (Shanghai) Co's Gross Margin % has ranged from 74.50 to 92.93. According to the industry distribution chart, Sunshine Guojian Pharmaceutical (Shanghai) Co ranks #91 out of 730 companies in the Biotechnology industry, placing it in the top 12.5%.
Is Sunshine Guojian Pharmaceutical (Shanghai) Co's Gross Margin % too high?
Sunshine Guojian Pharmaceutical (Shanghai) Co's current Gross Margin % of 80.71% is near median its 10-year median of 85.99. Over the past 10 years, this metric has ranged from a low of 74.50 to a high of 92.93. The Biotechnology industry median Gross Margin % is 60.91. Sunshine Guojian Pharmaceutical (Shanghai) Co's value of 80.71% is 32.5% above this industry median. Based on the distribution chart, Sunshine Guojian Pharmaceutical (Shanghai) Co ranks #91 out of 730 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Sunshine Guojian Pharmaceutical (Shanghai) Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sunshine Guojian Pharmaceutical (Shanghai) Co's Gross Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Sunshine Guojian Pharmaceutical (Shanghai) Co ranks #91 out of 730 companies for Gross Margin %. This places Sunshine Guojian Pharmaceutical (Shanghai) Co in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 60.91. Sunshine Guojian Pharmaceutical (Shanghai) Co's value of 80.71% is 32.5% above this benchmark. Historically, Sunshine Guojian Pharmaceutical (Shanghai) Co's own Gross Margin % has ranged from 74.50 to 92.93 over the past decade. While the company's 10-year median is 85.99 vs. the industry median of 60.91, Sunshine Guojian Pharmaceutical (Shanghai) 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.91, based on 730 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. Sunshine Guojian Pharmaceutical (Shanghai) Co's current Gross Margin % of 80.71% is 32.5% 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 Sunshine Guojian Pharmaceutical (Shanghai) Co and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunshine Guojian Pharmaceutical (Shanghai) Co's current Gross Margin % is 80.71%, which is near median its own 10-year median of 85.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunshine Guojian Pharmaceutical (Shanghai) Co stock overvalued right now?
Based on GuruFocus' analysis, Sunshine Guojian Pharmaceutical (Shanghai) Co (SHSE:688336) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥66.88, compared to a current price of ¥52.71 — trading 21.2% below its estimated fair value. The current Gross Margin % is 80.71%, which is near median its 10-year median of 85.99 and 32.5% above the Biotechnology industry median of 60.91. Sunshine Guojian Pharmaceutical (Shanghai) Co's overall GF Score™ is 84/100 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 Sunshine Guojian Pharmaceutical (Shanghai) Co (SHSE:688336), the current Gross Margin % is 80.71% 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 Sunshine Guojian Pharmaceutical (Shanghai) Co (SHSE:688336) Overvalued in 2026?
Based on GuruFocus' analysis, Sunshine Guojian Pharmaceutical (Shanghai) Co stock appears to be undervalued.
The current stock price of ¥52.71 is trading 21.2% below its estimated GF Value™ of ¥66.88.
GuruFocus considers Sunshine Guojian Pharmaceutical (Shanghai) Co to be Modestly Undervalued.
Key valuation signals for SHSE:688336:
Gross Margin %: 80.71% (near median its 10-year median of 85.99)
GF Value™: ¥66.88 vs. price of ¥52.71 (21.2% below fair value)
Industry Position: 32.5% above the Biotechnology median (#91 of 730)
No single metric tells the full story. See the SHSE:688336 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sunshine Guojian Pharmaceutical (Shanghai) Co Business Description
Sunshine Guojian Pharmaceutical (Shanghai) Co Ltd is a biopharmaceutical company providing safe and effective clinical solutions for the treatment of major diseases such as autoimmune diseases and tumors. The company engages in in research and development, manufacturing and commercialization of therapeutic antibody drugs in China. Its products portfolio includes YISAIPU and Xenopax. Its products in pipeline include 302H, 304R, 602, 601A, 609A and 301S.
84GF Score
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