Frontage Holdings Corp. (1521) AI Stock Analysis

• Market Cap: HK$2.75B
• Dividend Yield: N/A
• Average Volume (3M): 447.53K
• Price to Earnings (P/E): 93.2
• Beta (1Y): 1.11
• Revenue Growth: -3.04%
• EPS Growth: -37.18%
• Country: HK
• Employees: 1,560
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.03
• Shares Outstanding: 2,035,724,900
• 10 Day Avg. Volume: 453,600
• 30 Day Avg. Volume: 447,533
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$1.50
• Price Target Upside: 9.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: HK$1.50 ▲(9.49% Upside)

Frontage Holdings Corp. receives a moderate stock score of 58. The company's strong cash flow and solid balance sheet are positive factors, but declining profitability and high P/E ratio present significant challenges. Technical analysis suggests mixed momentum, with short-term bearish signals. The absence of earnings call insights and corporate events limits further evaluation.

Frontage Holdings Corp. Business Overview & Revenue Model

Company Description

Frontage Holdings Corporation, a contract research organization, provides laboratory and related services to pharmaceutical, biotechnology, and agrochemical companies, as well as bioequivalence studies. It offers laboratory testing services, such as method development and validation, and sample analysis and central laboratory services; chemistry, manufacturing, and control services, including assistance in drug product development and analysis, and delivery and supply of clinical trial materials; and drug metabolism and pharmacokinetic services that include study designs, execution of studies, and interpretation of the data through structural optimization in early discovery, pharmacokinetic studies in rodents, non- GLP bioanalytical studies, etc. The company also provides safety and toxicology services comprising in-vitro and in-vivo studies; bioequivalence services, which consist of designing, coordinating, and reporting of bioequivalence studies; chemistry services comprising contract research and custom synthesis services; and clinical services, such as early stage clinical, BE/BA, biometric, and data management services. It operates in the United States, the People's Republic of China, Europe, India, Japan, South Korea, and Australia. The company was incorporated in 2018 and is headquartered in Exton, Pennsylvania. Frontage Holdings Corporation is a subsidiary of Hongkong Tigermed Co., Limited.

How the Company Makes Money

Frontage Holdings Corp. generates revenue primarily through service fees charged for its contract research services. The company partners with pharmaceutical and biotechnology firms, offering tailor-made solutions in drug development and testing. Key revenue streams include fees for bioanalytical testing, clinical trial management, and CMC services, which support the formulation, analysis, and production of pharmaceutical products. Significant partnerships with major biopharmaceutical companies and a strong presence in both the US and Chinese markets contribute to its financial performance, allowing Frontage to capitalize on the growing demand for outsourced research and development services in the pharmaceutical industry.

Frontage Holdings Corp. Financial Statement Overview

Summary

Frontage Holdings Corp. demonstrates mixed financial performance. The income statement reflects challenges with declining profitability and revenue contraction. However, the balance sheet remains solid with a strong equity base, albeit with slight leverage increases. Cash flow statements reveal strong cash generation and management, ensuring liquidity. Overall, the company shows resilience but faces profitability pressures that need addressing.

Income Statement

The income statement shows a declining trend in profitability with the gross profit margin decreasing from 31.7% in 2023 to 27.4% in 2024. Net profit margin also fell from 4.2% to 0.3%, indicating reduced efficiency in converting revenue into profit. Revenue growth was slightly negative at -1.9% from 2023 to 2024, impacting overall performance. Despite these challenges, the company managed to maintain positive EBIT and EBITDA margins at 3.1% and 13.9% respectively in 2024.

Balance Sheet

The balance sheet remains robust with a healthy equity ratio of approximately 60.1% in 2024, suggesting a strong capital structure. However, the debt-to-equity ratio increased slightly to 0.46, indicating a moderate level of leverage. Return on equity declined significantly to 0.2% in 2024, highlighting challenges in generating returns for shareholders. Overall, the company maintains a stable financial position despite some leverage risks.

Cash Flow

Cash flow analysis shows positive free cash flow in 2024, driven by strong operating cash flow of $40.6 million, which covers capital expenditures. Operating cash flow to net income ratio stands at 51.4, indicating efficient cash generation relative to net income. Free cash flow growth is substantial at 118.6% from 2023 to 2024, reflecting improved cash management. Overall, cash flow health appears strong, supporting operational stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	254.91M	259.86M	250.36M	184.44M	125.81M
Gross Profit	69.81M	78.39M	89.19M	66.70M	41.48M
EBITDA	35.37M	45.02M	54.10M	42.56M	23.20M
Net Income	791.00K	10.81M	25.73M	18.43M	17.15M
Balance Sheet
Total Assets	553.59M	571.87M	550.59M	475.84M	382.71M
Cash, Cash Equivalents and Short-Term Investments	44.09M	54.60M	90.52M	148.71M	214.54M
Total Debt	154.37M	145.10M	118.19M	57.85M	40.62M
Total Liabilities	219.32M	226.72M	214.75M	152.76M	93.84M
Stockholders Equity	333.00M	342.50M	333.08M	319.84M	287.87M
Cash Flow
Free Cash Flow	14.75M	18.59M	14.78M	-5.83M	17.08M
Operating Cash Flow	40.64M	39.74M	62.44M	44.55M	31.65M
Investing Cash Flow	-41.48M	-87.63M	-147.91M	-107.44M	-25.89M
Financing Cash Flow	-10.22M	12.91M	30.66M	-5.54M	-2.91M

Frontage Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1521, the sentiment is Negative. The current price of 1.37 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.44, and above the 200-day MA of 1.33, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.69 is Neutral, neither overbought nor oversold. The STOCH value of 50.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1521.

Frontage Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2696	70 Outperform	45.27B	50.23	27.23%	―	2.57%	18.79%
1548	70 Outperform	36.95B	-26.36	68.54%	―	0.00%	0.00%
1521	58 Neutral	HK$2.75B	93.20	1.13%	―	-3.04%	-37.18%
1877	54 Neutral	46.62B	-28.68	-21.86%	―	44.21%	46.11%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Frontage Holdings Corp. Corporate Events

Frontage Holdings Reports Improved Profitability Despite Revenue Dip

Frontage Holdings Corporation, a company incorporated in the Cayman Islands, has announced its interim financial results for the six months ending June 30, 2025. The company reported a slight decrease in revenue by 1.5% to US$126.6 million compared to the same period in 2024. However, it achieved a notable increase in EBITDA by 13.9% and adjusted net profit by 26.2%, reflecting improved operational efficiency. Despite these positive indicators, the Board has decided not to declare an interim dividend for this period. The company has also presented non-IFRS financial measures to provide a clearer picture of its underlying business performance, excluding certain non-recurring and non-cash items.

The most recent analyst rating on (HK:1521) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Frontage Holdings Corp. stock, see the HK:1521 Stock Forecast page.

Frontage Holdings Announces Board Meeting for Interim Results and Dividend Consideration

Frontage Holdings Corporation has announced that its board of directors will meet on August 28, 2025, to consider and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also discuss the potential payment of an interim dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, as the board evaluates its financial performance and potential returns to investors.

The most recent analyst rating on (HK:1521) stock is a Hold with a HK$1.57 price target. To see the full list of analyst forecasts on Frontage Holdings Corp. stock, see the HK:1521 Stock Forecast page.

Frontage Holdings Revises Annual Caps Amid Growing Demand

Frontage Holdings Corporation has announced a revision of its annual caps related to its Renewed Services Framework Agreement with Hangzhou Tigermed due to increased demand. The revised caps will allow for higher revenue and fees from services provided and received, respectively, over the next three years. These transactions are classified as continuing connected transactions under Hong Kong’s Listing Rules, necessitating reporting and annual review, but exempt from circular and independent shareholders’ approval requirements.

The most recent analyst rating on (HK:1521) stock is a Hold with a HK$1.57 price target. To see the full list of analyst forecasts on Frontage Holdings Corp. stock, see the HK:1521 Stock Forecast page.

Frontage Holdings Announces CFO Transition

Frontage Holdings Corporation announced a change in its executive team with the resignation of Mr. Jun (Henry) Gao as Chief Financial Officer, effective July 15, 2025, due to his pursuit of other professional endeavors. Ms. Huan Wang, with extensive experience in the pharmaceutical and CRO industry, will assume the role of interim CFO. This transition is expected to maintain the company’s financial stability and strategic direction, given Ms. Wang’s long-standing involvement with the company and her role in its financial operations.

The most recent analyst rating on (HK:1521) stock is a Hold with a HK$1.57 price target. To see the full list of analyst forecasts on Frontage Holdings Corp. stock, see the HK:1521 Stock Forecast page.

Frontage Holdings Announces Changes to Nomination Committee

Frontage Holdings Corporation, a company incorporated in the Cayman Islands, has announced changes in its Nomination Committee effective June 30, 2025. The changes, which comply with upcoming amendments to the Hong Kong Stock Exchange’s Listing Rules and Corporate Governance Code, include the appointment of Ms. Zhuan Yin and Mr. Yifan Li as members. The Board believes these changes will enhance the committee’s effectiveness and diversity, strengthening the company’s corporate governance practices.

The most recent analyst rating on (HK:1521) stock is a Hold with a HK$1.57 price target. To see the full list of analyst forecasts on Frontage Holdings Corp. stock, see the HK:1521 Stock Forecast page.

Frontage Holdings Announces Board and Committee Restructuring

Frontage Holdings Corporation, a company incorporated in the Cayman Islands, has announced changes to its board of directors and committee memberships effective June 30, 2025. The announcement details the roles and functions of its executive, non-executive, and independent non-executive directors, highlighting the leadership positions within the Audit and Risk Management, Remuneration, and Nomination Committees. This restructuring is likely to impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder relationships.

The most recent analyst rating on (HK:1521) stock is a Hold with a HK$1.57 price target. To see the full list of analyst forecasts on Frontage Holdings Corp. stock, see the HK:1521 Stock Forecast page.

Frontage Holdings Updates Nomination Committee Terms

Frontage Holdings Corporation has updated the terms of reference for its Nomination Committee, which was originally established in 2018. The committee will consist of at least three non-executive directors, with a majority being independent and at least one member of a different gender, reflecting the company’s commitment to diversity and governance.

The most recent analyst rating on (HK:1521) stock is a Hold with a HK$1.57 price target. To see the full list of analyst forecasts on Frontage Holdings Corp. stock, see the HK:1521 Stock Forecast page.