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Huadong Medicine CoSZSE:000963 -0.36%86 Net Margin % is 8.96% as of Mar. 2026, which is 25% above its 10-year median of 7.19. GuruFocus rates SZSE:000963 with a GF Score™ of 86/100 and a GF Value™ of ¥39.74 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 961 Drug Manufacturers companies, Huadong Medicine Co ranks better than 58.58% on this metric.
Huadong Medicine Co (SZSE:000963) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Huadong Medicine Co Net Margin % Related Terms
Huadong Medicine Co Net Margin % Historical Data
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The historical data trend for Huadong Medicine Co's Net 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Huadong Medicine Co's Net Margin %, along with its competitors' market caps and Net 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.
Huadong Medicine Co Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Huadong Medicine Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Huadong Medicine Co's Net 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.
Huadong Medicine Co (SZSE:000963) has a Net Margin % of 8.96% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Huadong Medicine Co and its competitors. This is 25% above median its historical median of 7.19. Over the past decade, Huadong Medicine Co's Net Margin % has ranged from 5.70 to 8.38. According to the industry distribution chart, Huadong Medicine Co ranks #398 out of 961 companies in the Drug Manufacturers industry, placing it in the top 41.4%.
Is Huadong Medicine Co's Net Margin % too high?
Huadong Medicine Co's current Net Margin % of 8.96% is 25% above median its 10-year median of 7.19. Over the past 10 years, this metric has ranged from a low of 5.70 to a high of 8.38. The Drug Manufacturers industry median Net Margin % is 5.34. Huadong Medicine Co's value of 8.96% is 67.8% above this industry median. Based on the distribution chart, Huadong Medicine Co ranks #398 out of 961 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Huadong Medicine Co has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Huadong Medicine Co's Net Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Huadong Medicine Co ranks #398 out of 961 companies for Net Margin %. This puts Huadong Medicine Co in the upper half of its industry. The industry median Net Margin % is 5.34. Huadong Medicine Co's value of 8.96% is 67.8% above this benchmark. Historically, Huadong Medicine Co's own Net Margin % has ranged from 5.70 to 8.38 over the past decade. While the company's 10-year median is 7.19 vs. the industry median of 5.34, Huadong Medicine 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 Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.34, based on 961 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Huadong Medicine Co's current Net Margin % of 8.96% is 67.8% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Huadong Medicine Co and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huadong Medicine Co's current Net Margin % is 8.96%, which is 25% above median its own 10-year median of 7.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huadong Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, Huadong Medicine Co (SZSE:000963) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥39.74, compared to a current price of ¥27.82 — trading 30% below its estimated fair value. The current Net Margin % is 8.96%, which is 25% above median its 10-year median of 7.19 and 67.8% above the Drug Manufacturers industry median of 5.34. Huadong Medicine Co's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Huadong Medicine Co (SZSE:000963), the current Net Margin % is 8.96% 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 Huadong Medicine Co (SZSE:000963) Overvalued in 2026?
Based on GuruFocus' analysis, Huadong Medicine Co stock appears to be undervalued.
The current stock price of ¥27.82 is trading 30% below its estimated GF Value™ of ¥39.74.
GuruFocus considers Huadong Medicine Co to be Significantly Undervalued.
Key valuation signals for SZSE:000963:
Net Margin %: 8.96% (25% above median its 10-year median of 7.19)
GF Value™: ¥39.74 vs. price of ¥27.82 (30% below fair value)
Industry Position: 67.8% above the Drug Manufacturers median (#398 of 961)
No single metric tells the full story. See the SZSE:000963 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huadong Medicine Co Ltd is engaged in the production and sales of antibiotics, proprietary Chinese medicine, chemical synthetic medicine, and genetic engineering drug products. The company mainly operates its business through three segments. The Manufacturing Business segment is engaged in the research and development, production, and marketing of specialized medicines, medicines for chronic diseases, as well as special medicines. The Commercial Business segment is engaged in the sales of medicines, medical devices, ginseng, and antler pieces. The International Medical Beauty Business segment is engaged in the production and sales of regeneration products, hyaluronic acids, and botulinum toxin products.
86GF Score
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