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Frontage Holdings Corp. (HK:1521)
:1521
Hong Kong Market
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Frontage Holdings Corp. (1521) AI Stock Analysis

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HK

Frontage Holdings Corp.

(1521)

Rating:57Neutral
Price Target:
HK$1.50
▲(0.67%Upside)
Frontage Holdings Corp.'s stock score reflects strong cash flow and a solid balance sheet, but is dampened by declining profitability and high valuation, which raises concerns about overvaluation. Technical analysis signals mixed momentum, with potential risks of a pullback due to overbought conditions.

Frontage Holdings Corp. (1521) vs. iShares MSCI Hong Kong ETF (EWH)

Frontage Holdings Corp. Business Overview & Revenue Model

Company DescriptionFrontage 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 MoneyFrontage Holdings Corp. generates revenue by offering a range of contract research services to its clients in the pharmaceutical, biotechnology, and agrochemical industries. The company earns money through service contracts for its comprehensive offerings, which include preclinical research, clinical trial management, analytical testing, and regulatory consulting. Key revenue streams include bioanalytical services, which focus on the measurement and analysis of drugs and metabolites in biological systems, and CMC services, which are aimed at ensuring the chemical, manufacturing, and control aspects of drug development meet regulatory requirements. Revenue is largely driven by the demand for outsourced research services from pharmaceutical companies looking to expedite drug development while minimizing costs. Significant partnerships with major pharmaceutical and biotech firms enhance Frontage's market presence and contribute to its earnings.

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
65
Positive
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
70
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue254.91M259.86M250.36M184.44M125.81M
Gross Profit69.81M78.39M89.19M66.70M41.48M
EBITDA35.37M45.02M54.10M42.56M23.20M
Net Income791.00K10.81M25.73M18.43M17.15M
Balance Sheet
Total Assets553.59M571.87M550.59M475.84M382.71M
Cash, Cash Equivalents and Short-Term Investments44.09M54.60M90.52M148.71M214.54M
Total Debt154.37M145.10M118.19M57.85M40.62M
Total Liabilities219.32M226.72M214.75M152.76M93.84M
Stockholders Equity333.00M342.50M333.08M319.84M287.87M
Cash Flow
Free Cash Flow14.75M18.59M14.78M-5.83M17.08M
Operating Cash Flow40.64M39.74M62.44M44.55M31.65M
Investing Cash Flow-41.48M-87.63M-147.91M-107.44M-25.89M
Financing Cash Flow-10.22M12.91M30.66M-5.54M-2.91M

Frontage Holdings Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.49
Price Trends
50DMA
1.16
Positive
100DMA
1.15
Positive
200DMA
1.19
Positive
Market Momentum
MACD
0.03
Negative
RSI
78.41
Negative
STOCH
83.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1521, the sentiment is Positive. The current price of 1.49 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.16, and above the 200-day MA of 1.19, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 78.41 is Negative, neither overbought nor oversold. The STOCH value of 83.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1521.

Frontage Holdings Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
HK$3.03B496.670.23%-2.22%-92.77%
52
Neutral
$7.36B-0.07-63.77%2.81%16.35%0.03%
$4.64B0.93-6.09%
59
Neutral
HK$39.34B-19.78%25.96%39.58%
HK$29.40B37.5610.27%2.95%
72
Outperform
HK$34.24B38.4931.65%4.23%47.71%
HK$9.34B105.244.95%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1521
Frontage Holdings Corp.
1.49
0.71
91.03%
GNNSF
Genscript Biotech
2.12
0.40
23.26%
HK:1877
Shanghai Junshi Biosciences Co., Ltd. Class H
25.20
12.22
94.14%
HK:2096
Simcere Pharmaceutical Group Limited
12.16
6.60
118.71%
HK:2696
Shanghai Henlius Biotech, Inc. Class H
63.00
40.50
180.00%
HK:6955
Shandong Boan Biotechnology Company., Limited. Class H
16.26
6.98
75.22%

Frontage Holdings Corp. Corporate Events

Frontage Holdings Announces CFO Transition
Jul 14, 2025

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
Jun 30, 2025

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
Jun 30, 2025

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
Jun 30, 2025

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.

Frontage Holdings Announces Board Composition and Committee Roles
May 28, 2025

Frontage Holdings Corporation has announced the composition of its Board of Directors and the roles within its various committees. This update includes the appointment of executive, non-executive, and independent non-executive directors, which is crucial for stakeholders as it reflects the company’s governance structure and strategic oversight.

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 AGM Results and Director Changes
May 28, 2025

Frontage Holdings Corporation, a company incorporated in the Cayman Islands, announced the results of its Annual General Meeting (AGM) held on May 28, 2025. All proposed resolutions were passed, including the appointment of new executive directors Dr. Wentao Zhang and Dr. Zhongping Lin, and the re-election of non-executive directors. The meeting also approved the reappointment of BDO Limited as the company’s auditor and authorized the board to manage director remuneration and share repurchase mandates.

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 Reports Q1 2025 Financial Results with Reduced Losses
Apr 28, 2025

Frontage Holdings Corporation announced its unaudited financial results for the first quarter of 2025, reporting a net loss of approximately US$0.9 million, slightly improved from a US$1.0 million loss in the same period of 2024. The company’s revenue decreased by 10.6% to US$57.1 million compared to the previous year. Despite these challenges, the adjusted net profit was US$1.6 million after excluding certain expenses, indicating ongoing financial adjustments. The announcement highlights the importance of cautious trading by shareholders and potential investors due to the unaudited nature of the financial data.

Frontage Holdings Announces 2025 Annual General Meeting Agenda
Apr 24, 2025

Frontage Holdings Corporation has announced its upcoming annual general meeting, scheduled for May 28, 2025, in Shanghai, China. Key agenda items include the adoption of the company’s audited financial statements for 2024, the appointment and re-election of directors, and the reappointment of BDO Limited as the company’s auditor. Additionally, the meeting will address resolutions concerning the repurchase of shares and the issuance of additional shares, reflecting the company’s strategic focus on maintaining financial flexibility and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025