Genscript Biotech (1548) AI Stock Analysis

• Market Cap: $29.36B
• Dividend Yield: N/A
• Average Volume (3M): 11.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 5,568
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.17
• Shares Outstanding: 2,186,218,500
• 10 Day Avg. Volume: 8,707,016
• 30 Day Avg. Volume: 11,605,265
• PEG Ratio: -0.03
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 4.64
• P/FCF Ratio: -38.16
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 47.34
• Enterprise Value/Gross Profit: 91.42
• Enterprise Value/Ebitda: 65.75
• 1Y Price Target: $23.19
• Price Target Upside: 71.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$14.00 ▲(3.70% Upside)

Genscript Biotech's overall score reflects strong revenue growth and positive earnings call highlights, but is tempered by challenges in profitability, bearish technical indicators, and valuation concerns. The company's future success hinges on improving operational efficiency and achieving sustainable profitability.

Positive Factors

Revenue Growth

Strong revenue growth across all segments indicates robust demand and successful execution of business strategies, supporting long-term expansion.

Strong Cash Position

A strong cash position enhances financial flexibility, enabling strategic investments in R&D and expansion, crucial for sustaining growth.

ESG Achievements

Strong ESG ratings reflect commitment to sustainability and governance, enhancing reputation and potentially attracting more investors.

Negative Factors

Net Loss Due to Legend Biotech

Ongoing losses from Legend Biotech strain overall profitability, potentially impacting financial stability and investor confidence.

Temporary Gross Margin Impact

Temporary margin impacts could signal challenges in cost management, affecting short-term profitability and requiring strategic adjustments.

ProBio's Capacity Challenges

Capacity challenges in ProBio may hinder service delivery and margin recovery, affecting growth prospects if not addressed promptly.

Genscript Biotech Business Overview & Revenue Model

Company Description

Genscript 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 Money

Genscript Biotech generates revenue primarily through its diverse offerings in gene synthesis, protein production, and antibody services. The company operates on a B2B model, where it serves a wide array of clients including academic institutions, pharmaceutical companies, and biotechnology firms. Key revenue streams include custom gene synthesis, which involves creating specific DNA sequences for clients; peptide synthesis, where customized peptides are produced for research and therapeutic applications; and contract research services, which include various laboratory services for drug discovery and development. Additionally, Genscript benefits from strategic partnerships with other biotech firms and research institutions, enhancing its market reach and service offerings. The company's continuous investment in R&D and technological advancements also supports its revenue growth by enabling the introduction of new products and services to meet evolving market demands.

Genscript Biotech Financial Statement Overview

Summary

Genscript Biotech shows strong revenue growth and a solid balance sheet, but struggles with profitability and consistent cash flow. The company needs to improve operational efficiency and manage capital expenditures for sustainable success.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	551.89M	594.49M	839.53M	625.70M	490.10M	390.85M
Gross Profit	285.77M	272.13M	270.63M	304.08M	282.52M	255.89M
EBITDA	397.29M	70.43M	-249.42M	-389.04M	-477.27M	-174.71M
Net Income	3.11B	2.96B	-95.48M	-226.85M	-358.71M	-204.94M
Balance Sheet
Total Assets	5.43B	5.28B	3.39B	2.55B	2.23B	1.45B
Cash, Cash Equivalents and Short-Term Investments	938.36M	621.18M	1.93B	1.46B	1.41B	772.38M
Total Debt	548.52M	723.74M	416.99M	349.80M	156.45M	55.00M
Total Liabilities	1.01B	954.91M	1.34B	1.18B	846.17M	631.82M
Stockholders Equity	4.42B	4.32B	1.39B	1.01B	1.05B	901.71M
Cash Flow
Free Cash Flow	200.49M	-72.27M	-444.62M	-336.40M	-269.83M	-272.97M
Operating Cash Flow	232.62M	75.65M	-286.91M	-120.29M	-136.79M	-151.09M
Investing Cash Flow	-98.64M	-1.46B	-357.73M	-443.30M	-212.55M	-100.17M
Financing Cash Flow	26.40M	66.52M	1.07B	419.32M	902.14M	624.20M

Genscript Biotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1548, the sentiment is Negative. The current price of 13.5 is below the 20-day moving average (MA) of 14.98, below the 50-day MA of 15.87, and below the 200-day MA of 14.81, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 34.21 is Neutral, neither overbought nor oversold. The STOCH value of 24.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1548.

Genscript Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6821	69 Neutral	HK$36.55B	24.61	6.00%	1.56%	12.35%	34.32%
2696	66 Neutral	HK$35.22B	39.57	27.37%	―	2.57%	18.79%
1548	60 Neutral	$29.36B	-20.65	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1877	43 Neutral	HK$37.15B	-23.40	-15.06%	―	39.02%	48.26%
9688	42 Neutral	HK$15.98B	-9.41	-30.41%	―	23.87%	30.08%

Genscript Biotech Corporate Events

Legend Biotech Unveils Promising Data at 2025 ASH Meeting

Legend Biotech Corporation, an associate of Genscript Biotech, announced new long-term clinical and translational data for its CARVYKTI® therapy from the CARTITUDE studies at the 2025 ASH Annual Meeting. This announcement highlights Legend’s ongoing advancements in treating relapsed/refractory multiple myeloma and introduces first-in-human data for a new dual-targeted CAR-T candidate, potentially strengthening its position in the cell therapy market.

Genscript Biotech Announces Q3 2025 Results for Legend Biotech

Genscript Biotech Corporation announced the financial results for the third quarter of 2025 for its associate, Legend Biotech Corporation, which is listed on the Nasdaq Global Select Market. The announcement highlights that these results pertain solely to Legend Biotech, and investors are advised to exercise caution when dealing with Genscript’s securities, indicating a focus on transparency and risk management.

Genscript Biotech’s Associate to Present New Data at Hematology Meeting

Genscript Biotech Corporation announced that its associate, Legend Biotech Corporation, will present new data on CARVYKTI® and other pipeline products at the upcoming American Society of Hematology Annual Meeting. This announcement highlights Legend’s ongoing efforts in the field of hematology and could potentially enhance its industry positioning by showcasing advancements in their product offerings.

Genscript Biotech Reports Strong CARVYKTI® Sales in Q3 2025

Genscript Biotech Corporation announced that its associate, Legend Biotech, reported approximately $524 million in net trade sales for CARVYKTI® in the quarter ending September 2025. This figure highlights the product’s strong market performance under the collaboration with Janssen Biotech, Inc., indicating a positive impact on the company’s operations and industry positioning.

Genscript Biotech’s ProBio Receives Significant Sublicense Revenue Boost

Genscript Biotech Corporation announced that its subsidiary, ProBio, received approximately RMB479.7 million (US$67.5 million) as the second installment of sublicense revenue under an agreement with LaNova Medicines Ltd. This payment is related to the sublicense of anti-PD-1 single domain antibodies, which are part of LaNova’s investigational PD-1/VEGF bispecific antibody, LM-299. The cumulative payments received under this agreement now total approximately RMB2.0 billion (US$283.6 million). These funds will enhance ProBio’s cash reserves and support further molecular discovery and development, reinforcing its position in the biotechnology market.

Genscript Biotech Grants Share Awards to Boost Employee Engagement

Genscript Biotech Corporation announced the grant of 774,960 Share Awards under its 2019 RSU Scheme to an executive director and employee grantees. This move is part of the company’s strategy to align employee incentives with performance, featuring a vesting period of approximately three years and a clawback mechanism to ensure compliance with performance targets. The initiative reflects Genscript’s commitment to fostering employee engagement and maintaining robust corporate governance.