Liaoning Chengda Biotechnology Co (SHSE:688739) 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
Liaoning Chengda Biotechnology Co had a gross margin of 74.05% 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.
Liaoning Chengda Biotechnology Co Gross Margin % Related Terms
Liaoning Chengda 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.
Liaoning Chengda Biotechnology Co Gross Margin % Chart
SHSE:688739 vs VRTX, REGN, ALNY: Gross Margin % Comparison
For the Biotechnology subindustry, Liaoning Chengda 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.
Liaoning Chengda Biotechnology Co Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Liaoning Chengda Biotechnology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Liaoning Chengda 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.
Liaoning Chengda Biotechnology Co (SHSE:688739) has a Gross Margin % of 74.05% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Liaoning Chengda Biotechnology Co and its competitors. This is 13% below median its historical median of 85.47. Over the past decade, Liaoning Chengda Biotechnology Co's Gross Margin % has ranged from 79.21 to 89.85. According to the industry distribution chart, Liaoning Chengda Biotechnology Co ranks #206 out of 730 companies in the Biotechnology industry, placing it in the top 28.2%.
Is Liaoning Chengda Biotechnology Co's Gross Margin % too high?
Liaoning Chengda Biotechnology Co's current Gross Margin % of 74.05% is 13% below median its 10-year median of 85.47. Over the past 10 years, this metric has ranged from a low of 79.21 to a high of 89.85. The Biotechnology industry median Gross Margin % is 60.91. Liaoning Chengda Biotechnology Co's value of 74.05% is 21.6% above this industry median. Based on the distribution chart, Liaoning Chengda Biotechnology Co ranks #206 out of 730 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Liaoning Chengda Biotechnology Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Liaoning Chengda Biotechnology Co's Gross Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Liaoning Chengda Biotechnology Co ranks #206 out of 730 companies for Gross Margin %. This puts Liaoning Chengda Biotechnology Co in the upper half of its industry. The industry median Gross Margin % is 60.91. Liaoning Chengda Biotechnology Co's value of 74.05% is 21.6% above this benchmark. Historically, Liaoning Chengda Biotechnology Co's own Gross Margin % has ranged from 79.21 to 89.85 over the past decade. While the company's 10-year median is 85.47 vs. the industry median of 60.91, Liaoning Chengda Biotechnology 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. Liaoning Chengda Biotechnology Co's current Gross Margin % of 74.05% is 21.6% 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 Liaoning Chengda Biotechnology 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. Liaoning Chengda Biotechnology Co's current Gross Margin % is 74.05%, which is 13% below median its own 10-year median of 85.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Liaoning Chengda Biotechnology Co stock overvalued right now?
Based on GuruFocus' analysis, Liaoning Chengda Biotechnology Co (SHSE:688739) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥22.14, compared to a current price of ¥19.65 — trading 11.2% below its estimated fair value. The current Gross Margin % is 74.05%, which is 13% below median its 10-year median of 85.47 and 21.6% above the Biotechnology industry median of 60.91. Liaoning Chengda Biotechnology Co's overall GF Score™ is 69/100 with 6 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 Liaoning Chengda Biotechnology Co (SHSE:688739), the current Gross Margin % is 74.05% 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 Liaoning Chengda Biotechnology Co (SHSE:688739) Overvalued in 2026?
Based on GuruFocus' analysis, Liaoning Chengda Biotechnology Co stock appears to be undervalued.
The current stock price of ¥19.65 is trading 11.2% below its estimated GF Value™ of ¥22.14.
GuruFocus considers Liaoning Chengda Biotechnology Co to be Modestly Undervalued.
Key valuation signals for SHSE:688739:
Gross Margin %: 74.05% (13% below median its 10-year median of 85.47)
GF Value™: ¥22.14 vs. price of ¥19.65 (11.2% below fair value)
Industry Position: 21.6% above the Biotechnology median (#206 of 730)
No single metric tells the full story. See the SHSE:688739 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Liaoning Chengda Biotechnology Co Business Description
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