Ascentage Pharma Group International Unsponsored ADR (AAPG) AI Stock Analysis

• Market Cap: $3.58B
• Dividend Yield: N/A
• Average Volume (3M): 10.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: -56.78%
• EPS Growth: -191.46%
• Country: US
• Employees: 567
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.96
• Shares Outstanding: 93,167,800
• 10 Day Avg. Volume: 10,821
• 30 Day Avg. Volume: 10,314
• PEG Ratio: 1.00
• Price to Book (P/B): 145.04
• Price to Sales (P/S): 39.07
• P/FCF Ratio: -282.48
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 3.44
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: -11.28
• 1Y Price Target: $47.00
• Price Target Upside: 20.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: $38.00 ▼(-2.19% Downside)

The most significant factor is the company's financial performance, which shows robust revenue growth but is overshadowed by profitability and cash flow challenges. The technical analysis reflects overbought conditions, and valuation concerns arise from a negative P/E ratio. Together, these factors contribute to a cautious outlook.

Positive Factors

Regulatory Approval

Regulatory clearance for a Phase III study enhances the company's pipeline credibility and potential market entry, supporting long-term growth.

Revenue Growth

Significant revenue growth indicates strong demand and successful commercialization efforts, supporting future financial stability.

Partnerships

Strategic partnerships provide financial resources and enhance drug development capabilities, fostering long-term innovation and market reach.

Negative Factors

Profitability Challenges

Ongoing unprofitability and negative margins highlight operational inefficiencies, posing risks to sustainable financial health.

High Debt Levels

High leverage increases financial risk, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

Cash Flow Issues

Negative cash flow suggests challenges in sustaining operations and funding growth, necessitating improved cash management strategies.

Ascentage Pharma Group International Unsponsored ADR Business Overview & Revenue Model

Company Description

Ascentage Pharma Group International, a clinical-stage biotechnology company, develops therapies for cancers, chronic hepatitis B virus (HBV), and age-related diseases in Mainland China. The company's primary product candidate is HQP1351, a BCR-ABL inhibitor targeting BCR-ABL1 mutants, including those with the T315I mutation. It also develops APG-2575, an oral administered Bcl-2 selective inhibitor for hematologic malignancies and solid tumors; APG-115, an oral small molecule inhibitor of the MDM2-p53 protein-protein interactions to treat solid tumors and hematological malignancies; and APG-1252, a small molecule drug to restore apoptosis through dual inhibition of the Bcl-2 and Bcl-xL proteins for the treatment of small-cell lung cancer, non-small cell lung cancer, neuroendocrine tumor, and non-Hodgkin's lymphoma. In addition, the company is developing APG-1387, a small molecule inhibitor of apoptosis proteins for advanced solid tumors and chronic HBV infection; APG-2449, an oral inhibitor of FAK, ROS1, and ALK kinases; APG-5918, an orally available and selective embryonic ectoderm development inhibitor; APG-265, a MDM2 protein degrader; and UBX1967/1325, which are Bcl-2 inhibitors. In addition, it is also involved in medical research and development; clinical development; clinical trial operation; venture capital investment; rental services; and science and technology promotion services. The company has collaboration relationships with biotechnology and pharmaceutical companies; and research institutions. Ascentage Pharma Group International was founded in 2009 and is headquartered in Suzhou, China.

How the Company Makes Money

Ascentage Pharma generates revenue through multiple streams, primarily from collaborations and partnerships with other pharmaceutical companies for the development and commercialization of its drug candidates. The company may receive milestone payments and royalties from these collaborations, depending on the success of the drug development process. Additionally, Ascentage Pharma may generate income from grants and research funding aimed at advancing its innovative therapies. Significant partnerships with larger pharmaceutical firms can also provide financial stability and resources necessary for clinical trials and regulatory approvals.

Ascentage Pharma Group International Unsponsored ADR Financial Statement Overview

Summary

The company exhibits strong revenue growth; however, it struggles with profitability and cash flow. High debt levels and negative equity ratios indicate financial risk, necessitating strategic improvements.

Income Statement

The company's revenue has seen significant growth from 2023 to 2024, with a revenue increase of over 340%. However, the company remains unprofitable with a negative net profit margin, and the EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges in achieving profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage which could be risky. The equity ratio is low, suggesting a potential vulnerability to financial instability. The Return on Equity is negative, reflecting ongoing losses.

Cash Flow

While there was a reduction in negative operating cash flow in 2024, the company continues to experience negative free cash flow. The operating cash flow to net income ratio is negative, indicating challenges in translating earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	980.65M	221.98M	209.71M	4.33M	12.45M
Gross Profit	951.57M	191.44M	187.71M	24.58M	10.48M
EBITDA	-237.63M	-743.61M	-771.47M	-787.19M	-641.77M
Net Income	-405.43M	-925.64M	-882.92M	-782.42M	-677.61M
Balance Sheet
Total Assets	2.62B	2.50B	2.83B	2.94B	1.73B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.07B	1.48B	273.61M	1.02B
Total Debt	1.67B	1.80B	1.79B	1.08B	529.70M
Total Liabilities	2.34B	2.43B	2.42B	1.71B	884.42M
Stockholders Equity	264.19M	60.42M	408.66M	1.23B	846.62M
Cash Flow
Free Cash Flow	-135.65M	-782.92M	-890.88M	-1.04B	-861.43M
Operating Cash Flow	-111.36M	-726.08M	-653.91M	-604.68M	-609.96M
Investing Cash Flow	-362.04M	21.92M	-384.61M	-466.52M	-107.37M
Financing Cash Flow	314.77M	368.75M	619.27M	1.78B	1.04B

Ascentage Pharma Group International Unsponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTGX	60 Neutral	3.87B	87.29	40.75%	―	-34.45%	-69.75%
KYMR	57 Neutral	3.51B	-14.13	-28.35%	―	-49.51%	-44.09%
CRNX	52 Neutral	3.19B	-8.25	-22.52%	―	0.00%	-9.10%
IMVT	45 Neutral	2.58B	-5.19	0.00%	―	0.00%	-48.38%
AAPG	43 Neutral	$3.58B	―	-161.90%	―	-56.78%	-191.46%
MLTX	41 Neutral	3.45B	-19.28	0.00%	―	0.00%	-208.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%