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Genscript Biotech Corporation (HK:1548)
:1548
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Genscript Biotech (1548) AI Stock Analysis

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HK:1548

Genscript Biotech

(OTC:1548)

Rating:70Outperform
Price Target:
HK$20.00
▲(17.79% Upside)
Genscript Biotech's overall score is driven by strong technical analysis and positive earnings call insights, highlighting significant revenue growth and product performance. However, challenges in profitability and valuation concerns due to a negative P/E ratio temper the score.

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

Genscript Biotech Business Overview & Revenue Model

Company DescriptionGenscript Biotech Corporation (1548) is a global biotechnology company specializing in providing life sciences research and application services. The company operates in several sectors, including synthetic biology, biologics development, and gene and cell therapy production. Genscript offers a wide range of products and services, such as gene synthesis, peptide synthesis, protein engineering, and antibody development, catering to academic institutions, pharmaceutical companies, and other research organizations worldwide.
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 Earnings Call Summary

Earnings Call Date:Aug 17, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 27, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth across all segments, strong performance of Legend Biotech's CAR-T product, and a robust cash position. However, the Group faced challenges with net losses due to Legend Biotech, temporary impacts on gross margins, and capacity issues in ProBio. Despite these challenges, the positive achievements and growth outweigh the difficulties.
Q2-2025 Updates
Positive Updates
Record Revenue Growth
The Group's revenue increased by 81.9% year-over-year to approximately USD 519 million. All three segments achieved growth, with GenScript Life Science growing by 11.3%, ProBio by 511%, and Bestzyme by 8.4%.
Successful CAR-T Product Performance
Legend Biotech's CARVYKTI, a best-in-class CAR-T product, treated over 7,500 patients, with net trade sales growing 136% to USD 439 million in the second quarter.
Strong Cash Position
The Group's cash position stood at USD 970 million, supporting global expansion, R&D progress, and capacity ramp-up.
ESG Achievements
Significant breakthroughs in global ESG ratings, including a silver medal from EcoVadis, an MSCI ESG rating upgrade to AA, and inclusion in the FTSE4Good Index series.
ProBio's Return to Growth
ProBio achieved a return to revenue growth after two challenging years, driven by platform innovation and quality system enhancement.
Innovation in Life Science
The Life Science segment reported a 52% growth in services revenue, with advancements in TurboCHO high-throughput platform and CRISPR solutions.
Negative Updates
Net Loss Due to Legend Biotech
The Group's net loss was approximately USD 24.5 million, significantly impacted by Legend Biotech's current period loss and the amortization impact of a USD 3.2 billion variation increase when it was deconsolidated in 2024.
Temporary Gross Margin Impact
The gross profit margin was temporarily impacted by a change in product mix and global capacity expansion.
ProBio's Capacity Challenges
ProBio faced challenges with capacity ramp-up, which impacted the fee-for-service margin.
Bestzyme's Slow First Half
Bestzyme's growth was slower in the first half due to the holiday season in China, but a strong recovery is expected in the second half.
Company Guidance
During the 2025 interim results conference call, GenScript provided detailed guidance on their financial and operational performance for the first half of the year and projections for the second half. The company reported an impressive 82% year-over-year revenue growth, with the adjusted profit from continuing operations significantly increasing to approximately USD 180 million. Key highlights included the GenScript Life Science business achieving an 11.3% revenue increase to USD 248 million, and ProBio exhibiting a robust 511% growth to USD 247 million. Bestzyme also experienced a revenue rise of 8.4% to USD 28.3 million. Legend Biotech's CAR-T product, CARVYKTI, treated over 7,500 patients and saw a 136% increase in net trade sales to USD 439 million. GenScript forecasts continued growth, with GenScript Life Science's full-year revenue expected to increase by 13% to 15% and anticipates ProBio to recognize additional milestone payments in the second half. The company maintains a strong cash position of USD 970 million, supporting global expansion and R&D initiatives. Additionally, GenScript remains committed to advancing ESG initiatives, earning a silver medal from EcoVadis and an AA rating from MSCI ESG, reflecting their dedication to sustainability and governance.

Genscript Biotech Financial Statement Overview

Summary
Strong revenue growth and a solid balance sheet, but challenges exist in profitability and consistent cash flow. Improvements are needed in operational efficiency and capital management to achieve 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 Price16.98
Price Trends
50DMA
16.57
Positive
100DMA
14.33
Positive
200DMA
12.76
Positive
Market Momentum
MACD
0.37
Positive
RSI
46.80
Neutral
STOCH
38.15
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 16.98 is below the 20-day moving average (MA) of 17.60, above the 50-day MA of 16.57, and above the 200-day MA of 12.76, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 38.15 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
HK$40.64B0.97-6.09%
51
Neutral
$7.81B-0.22-40.01%2.29%21.48%-2.11%
€3.25B-29.51%
54
Neutral
HK$46.13B-16.25%44.21%46.11%
HK$35.73B37.4112.36%1.30%
70
Outperform
HK$45.60B48.3327.37%2.57%18.79%
69
Neutral
HK$38.51B28.356.33%1.36%6.68%-0.96%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1548
Genscript Biotech
16.98
4.92
40.80%
DE:1ZLB
Zai Lab Ltd
2.76
1.15
71.43%
HK:1877
Shanghai Junshi Biosciences Co., Ltd. Class H
29.80
18.26
158.23%
HK:2096
Simcere Pharmaceutical Group Limited
13.28
7.64
135.46%
HK:2696
Shanghai Henlius Biotech, Inc. Class H
74.00
51.00
221.74%
HK:6821
Asymchem Laboratories (Tianjin) Co., Ltd. Class H
87.25
47.26
118.18%

Genscript Biotech Corporate Events

Genscript Biotech Schedules Board Meeting for Interim Results Review
Aug 4, 2025

Genscript Biotech Corporation has announced a board meeting scheduled for August 16, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the possibility of declaring an interim dividend, which could have implications for the company’s financial strategy and shareholder returns.

Genscript Biotech Projects Significant Profit Growth for H1 2025
Jul 21, 2025

Genscript Biotech Corporation has announced a significant expected increase in profit before tax for the first half of 2025, compared to the same period in 2024. This growth is primarily driven by a substantial rise in license revenue, particularly from LaNova Medicines Ltd., and a decrease in non-cash fair value loss from its preferred shares. The announcement highlights the company’s strategic positioning and ability to leverage its diversified business model and technological capabilities, potentially impacting its stakeholders positively.

Legend Biotech Reports Strong Sales for CARVYKTI® in Q2 2025
Jul 16, 2025

Legend Biotech, an associate of Genscript Biotech, announced that its product CARVYKTI® generated approximately $439 million in net trade sales for the quarter ending June 30, 2025. This financial performance is linked to a collaboration with Janssen Biotech, highlighting the product’s market success and potential impact on Genscript’s financial standing and industry positioning.

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.

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: Aug 19, 2025