Shanghai Haohai Biological Technology Co (SHSE:688366) 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
Shanghai Haohai Biological Technology Co had a gross margin of 66.32% 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.
Shanghai Haohai Biological Technology Co Gross Margin % Related Terms
Shanghai Haohai Biological Technology 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.
Shanghai Haohai Biological Technology Co Gross Margin % Chart
Shanghai Haohai Biological Technology Co Annual Data
SHSE:688366 vs VRTX, REGN, ALNY: Gross Margin % Comparison
For the Biotechnology subindustry, Shanghai Haohai Biological Technology 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.
Shanghai Haohai Biological Technology 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.
Shanghai Haohai Biological Technology Co (SHSE:688366) has a Gross Margin % of 66.32% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Haohai Biological Technology Co and its competitors. This is 10% below median its historical median of 73.38. Over the past decade, Shanghai Haohai Biological Technology Co's Gross Margin % has ranged from 68.62 to 83.37. According to the industry distribution chart, Shanghai Haohai Biological Technology Co ranks #311 out of 735 companies in the Biotechnology industry, placing it in the top 42.3%.
Is Shanghai Haohai Biological Technology Co's Gross Margin % too high?
Shanghai Haohai Biological Technology Co's current Gross Margin % of 66.32% is 10% below median its 10-year median of 73.38. Over the past 10 years, this metric has ranged from a low of 68.62 to a high of 83.37. The Biotechnology industry median Gross Margin % is 60.90. Shanghai Haohai Biological Technology Co's value of 66.32% is 8.9% above this industry median. Based on the distribution chart, Shanghai Haohai Biological Technology Co ranks #311 out of 735 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Shanghai Haohai Biological Technology Co has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Haohai Biological Technology Co's Gross Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Shanghai Haohai Biological Technology Co ranks #311 out of 735 companies for Gross Margin %. This puts Shanghai Haohai Biological Technology Co in the upper half of its industry. The industry median Gross Margin % is 60.90. Shanghai Haohai Biological Technology Co's value of 66.32% is 8.9% above this benchmark. Historically, Shanghai Haohai Biological Technology Co's own Gross Margin % has ranged from 68.62 to 83.37 over the past decade. While the company's 10-year median is 73.38 vs. the industry median of 60.90, Shanghai Haohai Biological Technology 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 60.90, based on 735 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. Shanghai Haohai Biological Technology Co's current Gross Margin % of 66.32% is 8.9% 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 Shanghai Haohai Biological Technology Co and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Haohai Biological Technology Co's current Gross Margin % is 66.32%, which is 10% below median its own 10-year median of 73.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Haohai Biological Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Haohai Biological Technology Co (SHSE:688366) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥43.66, compared to a current price of ¥28.99 — trading 33.6% below its estimated fair value. The current Gross Margin % is 66.32%, which is 10% below median its 10-year median of 73.38 and 8.9% above the Biotechnology industry median of 60.90. Shanghai Haohai Biological Technology Co's overall GF Score™ is 73/100 with 5 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 Shanghai Haohai Biological Technology Co (SHSE:688366), the current Gross Margin % is 66.32% 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 Shanghai Haohai Biological Technology Co (SHSE:688366) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Haohai Biological Technology Co stock appears to be undervalued.
The current stock price of ¥28.99 is trading 33.6% below its estimated GF Value™ of ¥43.66.
GuruFocus considers Shanghai Haohai Biological Technology Co to be Significantly Undervalued.
Key valuation signals for SHSE:688366:
Gross Margin %: 66.32% (10% below median its 10-year median of 73.38)
GF Value™: ¥43.66 vs. price of ¥28.99 (33.6% below fair value)
Industry Position: 8.9% above the Biotechnology median (#311 of 735)
No single metric tells the full story. See the SHSE:688366 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Haohai Biological Technology Co Business Description
Shanghai Haohai Biological Technology Co Ltd is engaged in the manufacturing and sale of biologicals, medical hyaluronate, and ophthalmology products. The Company's operating activities are related to a single operating segment, which is the manufacture and sale of biologicals, medical hyaluronate, and intraocular lenses, research and development of biological engineering and pharmaceutical products, and the provision of related services. Its products are categorized into four types, comprising ophthalmology, medical aesthetics, orthopedics, and anti-adhesion. Geographically, it has operations in Mainland China, which is the key revenue driver, the United States, the United Kingdom, and other countries.
73GF Score
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