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Genscript Biotech (HK:1548)
:1548

Genscript Biotech (1548) AI Stock Analysis

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HK

Genscript Biotech

(OTC:1548)

Rating:66Neutral
Price Target:
HK$16.00
▲(7.38%Upside)
The stock's strong technical indicators and revenue growth are offset by significant profitability challenges and valuation concerns. Positive momentum and a robust balance sheet provide some upside potential, but the company needs to address its financial inefficiencies for sustained growth.

Genscript Biotech (1548) vs. iShares MSCI Hong Kong ETF (EWH)

Genscript Biotech Business Overview & Revenue Model

Company DescriptionGenscript Biotech Corporation, an investment holding company, engages in the manufacture and sale of life science research products and services in North America, Europe, the People's Republic of China, Japan, the other Asia Pacific regions, and internationally. It operates through four segments: Life Science Services and Products, Biologics Development Services, Industrial Synthetic Biology Products, and Cell Therapy. The Life Science Services and Products segment provides research services in various categories, including gene synthesis and molecular cloning, oligonucleotide synthesis, protein engineering, peptide synthesis, antibody development, molecular diagnostics tools, and genome editing materials for use in basic biology studies, pharmaceutical and drug discovery, disease diagnostics and vaccine, agriculture, environmental studies, and food industry. The Biologics Development Services segment offers various services, such as antibody drug discovery, antibody drug pre-clinical and clinical development, plasmid and virus pre-clinical development, and plasmid and virus clinical development for therapeutic antibodies, as well as gene and cell therapy development and biologics discovery and development services for pharmaceutical, biotech, government, and academic customers. The Industrial Synthetic Biology Products segment constructs non-pathogenic microbial strains; and develops and produces industrial enzymes for food processing, feed, pharmaceutical, and chemical industries. The Cell Therapy segment discovers and develops chimeric antigen receptor T-cell therapies for the treatment of liquid and solid tumors. Genscript Biotech Corporation was founded in 2002 and is headquartered in Nanjing, the People's Republic of China.
How the Company Makes MoneyGenscript Biotech generates revenue primarily through the sale of its life sciences research products and services. Key revenue streams include gene synthesis services, custom peptide services, and protein and antibody engineering solutions. The company also earns money through its biologics development and manufacturing services, supporting pharmaceutical and biotech companies in drug development projects. Significant partnerships and collaborations with research institutions and industry leaders further bolster its earnings, enhancing its ability to offer specialized and high-demand biotechnological solutions. Additionally, Genscript's investment in innovation and expansion into emerging markets contributes to its financial growth.

Genscript Biotech Financial Statement Overview

Summary
Genscript Biotech demonstrates strong revenue growth and a solid balance sheet, but struggles with profitability and consistent cash flow. The company shows potential for growth, but needs to focus on operational efficiency and capital management for sustainable financial health.
Income Statement
65
Positive
Genscript Biotech has shown significant revenue growth over the years, with a compound annual growth rate in revenue from 2019 to 2024. The gross profit margin remains strong, indicating efficient cost management. However, the company has struggled with profitability, as reflected in negative EBIT and net profit margins in several years, despite a positive net income in 2024 due to exceptional items. The trajectory indicates improving top-line growth but persistent challenges in achieving sustainable profitability.
Balance Sheet
75
Positive
The balance sheet reflects a strong equity position with the equity ratio consistently above 50%, indicating financial stability and low leverage. The debt-to-equity ratio is manageable, supporting a stable financial structure. Improvements in asset base and shareholder equity over the years suggest healthy growth, although fluctuations in cash reserves may indicate liquidity management challenges.
Cash Flow
60
Neutral
Cash flow from operations has improved in 2024, turning positive after several years of negative figures, demonstrating progress in cash generation. Nonetheless, the free cash flow remains negative, impacted by significant capital expenditures and investments, which could pose liquidity risks. The operating cash flow to net income ratio improved, but long-term sustainability of positive cash flow remains uncertain without consistent profitability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue594.49M839.53M625.70M490.10M390.85M
Gross Profit272.13M409.55M304.08M282.52M255.89M
EBITDA70.43M-249.42M-389.04M-341.57M-174.71M
Net Income2.96B-95.48M-226.85M-358.71M-204.94M
Balance Sheet
Total Assets5.28B3.39B2.55B2.23B1.45B
Cash, Cash Equivalents and Short-Term Investments621.18M1.93B1.46B1.41B772.38M
Total Debt723.74M416.99M349.80M156.45M55.00M
Total Liabilities954.91M1.34B1.18B846.17M631.82M
Stockholders Equity4.32B1.39B1.01B1.05B901.71M
Cash Flow
Free Cash Flow-72.27M-444.62M-336.40M-269.83M-272.97M
Operating Cash Flow75.65M-286.91M-120.29M-136.79M-151.09M
Investing Cash Flow-1.46B-357.73M-443.30M-212.55M-100.17M
Financing Cash Flow66.52M1.07B419.32M902.14M624.20M

Genscript Biotech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.90
Price Trends
50DMA
13.36
Positive
100DMA
12.71
Positive
200DMA
11.89
Positive
Market Momentum
MACD
0.35
Positive
RSI
53.45
Neutral
STOCH
51.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1548, the sentiment is Positive. The current price of 14.9 is below the 20-day moving average (MA) of 15.13, above the 50-day MA of 13.36, and above the 200-day MA of 11.89, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 51.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1548.

Genscript Biotech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$33.32B0.97-6.09%
52
Neutral
$7.53B0.20-61.87%2.28%16.72%1.10%
€3.29B-32.29%
59
Neutral
HK$38.20B-19.78%25.96%39.58%
HK$26.48B32.8810.27%1.63%
70
Outperform
HK$29.81B34.1531.65%4.23%47.71%
69
Neutral
HK$33.06B26.025.72%1.53%-15.81%-48.17%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1548
Genscript Biotech
14.90
4.90
49.00%
DE:1ZLB
Zai Lab Ltd
2.86
1.29
82.17%
HK:1877
Shanghai Junshi Biosciences Co., Ltd. Class H
23.55
10.31
77.87%
HK:2096
Simcere Pharmaceutical Group Limited
10.70
5.09
90.73%
HK:2696
Shanghai Henlius Biotech, Inc. Class H
55.45
32.80
144.81%
HK:6821
Asymchem Laboratories (Tianjin) Co., Ltd. Class H
78.75
32.51
70.31%

Genscript Biotech Corporate Events

Genscript Biotech’s ProBio Secures $213.8 Million from LaNova Licensing Deal
Jun 29, 2025

Genscript Biotech Corporation announced that its subsidiary, ProBio, received approximately $213.8 million in payments under a licensing agreement with LaNova Medicines Ltd. This agreement grants LaNova an exclusive, worldwide license to develop and commercialize anti-PD-1 single domain antibodies. The payments, which include upfront and milestone payments, as well as sublicense revenue, will enhance ProBio’s cash reserves and strengthen its core competencies. The licensed antibodies demonstrate strong binding and tumor growth inhibition, comparable to Merck’s Keytruda, and have a favorable developability profile for manufacturing.

Genscript Biotech Grants Restricted Shares to Executives
Jun 11, 2025

Genscript Biotech Corporation announced the grant of 624,540 Restricted Shares to its rotating chief executive officer and a director under the 2019 RSA Scheme. This move is part of the company’s strategy to align the interests of its executives with corporate performance, with vesting periods extending up to five years and performance targets in place. The inclusion of a clawback mechanism ensures that the company can reclaim equity incentives under certain conditions, such as misconduct or financial misstatements.

GenScript Biotech’s Associate Unveils Promising Long-term Cancer Treatment Data
Jun 4, 2025

Legend Biotech, an associate of GenScript Biotech, announced promising five-year survival data from the CARTITUDE-1 study for its CARVYKTI® therapy in treating multiple myeloma. The data, presented at the 2025 ASCO Annual Meeting, showed that one-third of patients remained progression-free for five years, highlighting the therapy’s potential impact on long-term cancer treatment. Additionally, preliminary results from ongoing studies in solid tumors were also presented, indicating potential advancements in lung and gastric cancer therapies.

Genscript Biotech Announces AGM Results and Board Changes
May 29, 2025

Genscript Biotech Corporation held its Annual General Meeting on May 29, 2025, where all proposed resolutions were passed by poll. Key decisions included the re-election of several directors and the reappointment of Ernst & Young as auditors. The meeting also granted the board mandates to issue and repurchase shares, reflecting strategic moves to enhance corporate governance and shareholder value.

The most recent analyst rating on (HK:1548) stock is a Buy with a HK$23.00 price target. To see the full list of analyst forecasts on Genscript Biotech stock, see the HK:1548 Stock Forecast page.

Genscript Biotech Announces Board Composition and Committee Roles
May 29, 2025

Genscript Biotech Corporation announced the composition and roles of its board of directors, highlighting the establishment of five committees to enhance governance and strategic oversight. This organizational update is likely to strengthen the company’s operational framework and could have implications for its strategic direction and stakeholder engagement.

The most recent analyst rating on (HK:1548) stock is a Buy with a HK$23.00 price target. To see the full list of analyst forecasts on Genscript Biotech stock, see the HK:1548 Stock Forecast page.

Genscript Biotech Updates Nomination Committee Terms to Enhance Governance
May 29, 2025

Genscript Biotech Corporation has updated the terms of reference for its Nomination Committee, emphasizing the importance of diversity and independent oversight. The committee, which consists of at least three directors with a focus on gender diversity and independent non-executive directors, is tasked with reviewing the board’s structure and skills annually to align with the company’s corporate strategy. This move aims to enhance corporate governance and ensure the board’s composition supports strategic goals, potentially impacting stakeholder confidence positively.

The most recent analyst rating on (HK:1548) stock is a Buy with a HK$23.00 price target. To see the full list of analyst forecasts on Genscript Biotech stock, see the HK:1548 Stock Forecast page.

Legend Biotech to Present New CARVYKTI Data at 2025 ASCO and EHA Meetings
May 22, 2025

Legend Biotech, an associate of Genscript Biotech, will present new data on CARVYKTI, a treatment for multiple myeloma, at the 2025 ASCO and EHA annual meetings. This announcement highlights the ongoing development efforts in the CARTITUDE Clinical Development Program, which could have significant implications for the treatment of multiple myeloma and potentially enhance Legend Biotech’s position in the biotech industry.

The most recent analyst rating on (HK:1548) stock is a Buy with a HK$23.00 price target. To see the full list of analyst forecasts on Genscript Biotech stock, see the HK:1548 Stock Forecast page.

GenScript Announces Legend Biotech’s Q1 2025 Financial Results
May 13, 2025

GenScript Biotech Corporation, a company incorporated in the Cayman Islands, has announced the financial results of its associate, Legend Biotech Corporation, for the first quarter ended March 31, 2025. Legend Biotech, listed on the Nasdaq Global Selected Market, has filed its Form 6-K with the SEC, detailing its financial performance and recent business highlights. GenScript advises shareholders and potential investors to exercise caution when dealing with its securities, as the financial results pertain solely to Legend Biotech.

The most recent analyst rating on (HK:1548) stock is a Buy with a HK$23.00 price target. To see the full list of analyst forecasts on Genscript Biotech stock, see the HK:1548 Stock Forecast page.

Genscript Biotech Completes Major Share Transfer in Probio Cayman
May 7, 2025

Genscript Biotech Corporation has completed a significant transaction involving the transfer of 300,000,000 Series A Preferred Shares of its subsidiary, Probio Cayman. This transaction, which took place on May 7, 2025, strengthens Genscript’s control over Probio Cayman, increasing its equity interest to approximately 85.09%. This strategic move is likely to enhance Genscript’s market positioning and operational capabilities in the biotech sector.

Genscript Biotech Increases Stake in Probio Cayman with $225 Million Share Purchase
Apr 28, 2025

Genscript Biotech Corporation announced a significant transaction involving the transfer of 300,000,000 Series A Preferred Shares of its subsidiary, Probio Cayman, for approximately US$225.1 million. This transaction will increase Genscript’s equity interest in Probio Cayman from 71.72% to 85.09%, enhancing its control over the subsidiary. The deal, approved by the Board, is considered a connected transaction but is exempt from certain regulatory requirements, reflecting its strategic importance for Genscript’s market positioning and operational control.

Legend Biotech Reports Strong CARVYKTI® Sales for Q1 2025
Apr 15, 2025

Legend Biotech, an associate of Genscript Biotech, announced that CARVYKTI® generated approximately US$369 million in net trade sales for the quarter ended March 31, 2025. This announcement highlights the product’s strong market performance and its potential impact on the company’s financial health and industry standing.

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: Jun 19, 2025