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Anhui Huaheng Biotechnology Co (SHSE:688639) 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
Anhui Huaheng Biotechnology Co had a gross margin of 25.94% for the quarter that ended in Jun. 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.
Anhui Huaheng Biotechnology Co Gross Margin % Related Terms
Anhui Huaheng Biotechnology 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.
Anhui Huaheng Biotechnology Co Gross Margin % Chart
SHSE:688639 vs VRTX, REGN, MRNA: Gross Margin % Comparison
For the Biotechnology subindustry, Anhui Huaheng Biotechnology 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.
Anhui Huaheng Biotechnology Co Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Anhui Huaheng Biotechnology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Anhui Huaheng Biotechnology 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.
Anhui Huaheng Biotechnology Co (SHSE:688639) has a Gross Margin % of 25.94% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Anhui Huaheng Biotechnology Co and its competitors. This is 32% below median its historical median of 38.29. Over the past decade, Anhui Huaheng Biotechnology Co's Gross Margin % has ranged from 21.12 to 45.97. According to the industry distribution chart, Anhui Huaheng Biotechnology Co ranks #615 out of 737 companies in the Biotechnology industry, placing it in the top 83.4%.
Is Anhui Huaheng Biotechnology Co's Gross Margin % too high?
Anhui Huaheng Biotechnology Co's current Gross Margin % of 25.94% is 32% below median its 10-year median of 38.29. Over the past 10 years, this metric has ranged from a low of 21.12 to a high of 45.97. The Biotechnology industry median Gross Margin % is 61.00. Anhui Huaheng Biotechnology Co's value of 25.94% is 57.5% below this industry median. Based on the distribution chart, Anhui Huaheng Biotechnology Co ranks #615 out of 737 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Anhui Huaheng Biotechnology Co has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Anhui Huaheng Biotechnology Co's Gross Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Anhui Huaheng Biotechnology Co ranks #615 out of 737 companies for Gross Margin %. This places Anhui Huaheng Biotechnology Co in the lower half of its industry. The industry median Gross Margin % is 61.00. Anhui Huaheng Biotechnology Co's value of 25.94% is 57.5% below this benchmark. Historically, Anhui Huaheng Biotechnology Co's own Gross Margin % has ranged from 21.12 to 45.97 over the past decade. While the company's 10-year median is 38.29 vs. the industry median of 61.00, Anhui Huaheng Biotechnology Co 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 61.00, based on 737 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. Anhui Huaheng Biotechnology Co's current Gross Margin % of 25.94% is 57.5% 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 Anhui Huaheng Biotechnology Co and its competitors. For the Biotechnology industry, the median Gross Margin % is 61.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Anhui Huaheng Biotechnology Co's current Gross Margin % is 25.94%, which is 32% below median its own 10-year median of 38.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Anhui Huaheng Biotechnology Co stock overvalued right now?
Based on GuruFocus' analysis, Anhui Huaheng Biotechnology Co (SHSE:688639) is currently considered Possible Value Trap. The stock's GF Value™ is ¥42.41, compared to a current price of ¥17.29 — trading 59.2% below its estimated fair value. The current Gross Margin % is 25.94%, which is 32% below median its 10-year median of 38.29 and 57.5% below the Biotechnology industry median of 61.00. Anhui Huaheng Biotechnology Co's overall GF Score™ is 75/100 with 13 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 Anhui Huaheng Biotechnology Co (SHSE:688639), the current Gross Margin % is 25.94% as of Jun. 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 Anhui Huaheng Biotechnology Co (SHSE:688639) Overvalued in 2026?
Based on GuruFocus' analysis, Anhui Huaheng Biotechnology Co stock appears to be undervalued.
The current stock price of ¥17.29 is trading 59.2% below its estimated GF Value™ of ¥42.41.
GuruFocus considers Anhui Huaheng Biotechnology Co to be Possible Value Trap.
Key valuation signals for SHSE:688639:
Gross Margin %: 25.94% (32% below median its 10-year median of 38.29)
GF Value™: ¥42.41 vs. price of ¥17.29 (59.2% below fair value)
Industry Position: 57.5% below the Biotechnology median (#615 of 737)
No single metric tells the full story. See the SHSE:688639 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Anhui Huaheng Biotechnology Co Ltd is engaged in the research and development, production and sales of bio-based products such as amino acids and other alanine products.
75GF Score
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