Viva Biotech Holdings (1873) AI Stock Analysis

• Market Cap: HK$4.27B
• Dividend Yield: N/A
• Average Volume (3M): 10.31M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 2.36
• Revenue Growth: -8.11%
• EPS Growth: N/A
• Country: HK
• Employees: 2,063
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.05
• Shares Outstanding: 2,129,882,300
• 10 Day Avg. Volume: 10,852,121
• 30 Day Avg. Volume: 10,305,290
• PEG Ratio: -0.04
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 9.47
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$2.00 ▼(-0.99% Downside)

The overall stock score of 51 reflects a combination of mixed financial performance and bearish technical indicators. The company's financial health shows signs of recovery but is hampered by cash flow volatility and inconsistent profitability. Technical analysis indicates bearish momentum, which could pose short-term risks. Valuation is moderate, but the lack of a dividend yield may deter income-focused investors.

Positive Factors

Business Model Strength

The company's focus on CRO services in structure-based drug discovery provides a stable revenue stream, leveraging its expertise in drug development processes.

Competitive Advantage

Expertise in specialized areas like protein production and structural biology strengthens Viva Biotech's competitive position in the biotechnology sector.

Balance Sheet Health

A low debt-to-equity ratio indicates manageable leverage, providing financial stability and flexibility for future growth opportunities.

Negative Factors

Revenue Volatility

Revenue volatility can hinder long-term planning and investment, potentially impacting the company's ability to sustain growth.

Cash Flow Instability

Inconsistent cash flow generation raises concerns about liquidity and the company's ability to fund operations and investments sustainably.

Profitability Challenges

Inconsistent profitability can affect the company's ability to reinvest in growth and maintain competitive positioning in the long term.

Viva Biotech Holdings Business Overview & Revenue Model

Company Description

Viva Biotech Holdings, an investment holding company, provides structure-based drug discovery services to biotechnology and pharmaceutical customers worldwide. The company provides discovery biology services, include protein expression and purification, structural biology, hit discovery, bioassay, biomolecular interaction, and pharmacokinetics; chemistry services, such as medicinal and synthetic chemistry, analytical chemistry, purification preparation, and computer-aided drug design services, as well as offers chemical technology platforms; and antibody drug research and development services, include antigen preparation, multi-species discovery, monoclonal antibodies, antibodies functional screening and identification, antibody engineering transformation, antibody characteristics, and antibody cell line engineering transformation, as well as offers technology platforms, such as hybridoma, phage and yeast display, mammalian display, VHH antibody technology, high throughput sequencing, computer-aided drug design, HDX-MS, crystal structure determination of protein, and SPR technology. It also provides cell lines, crystal structures, GPCR proteins, antibodies, and proteins. In addition, the company offers contract development and manufacturing services for small molecule active pharmaceutical ingredients (APIs) and intermediates; and trades in APIs, intermediates, and formulations, as well as equity for service. Further, it provides research service; laboratory rental services; and project management and bidding services, as well as sells compounds. The company was incorporated in 2008 and is headquartered in Shanghai, China.

How the Company Makes Money

Viva Biotech generates revenue through multiple key streams primarily centered around its drug discovery and development services. The company charges clients for its specialized services, which include high-throughput screening, lead optimization, and preclinical development. Additionally, Viva Biotech collaborates with pharmaceutical companies through strategic partnerships, often engaging in joint research projects that can lead to milestone payments and royalties upon successful drug development. The company may also earn revenue from licensing agreements for its proprietary technologies or compounds, further diversifying its income sources. These collaborations and services are crucial for driving the company’s financial performance as they cater to the increasing demand for efficient drug development solutions in the competitive biopharmaceutical market.

Viva Biotech Holdings Financial Statement Overview

Summary

Viva Biotech Holdings exhibits a mixed financial performance. While profitability metrics show signs of recovery, inconsistencies in revenue and net income present challenges. The balance sheet remains robust with a solid equity base and manageable debt levels. However, cash flow volatility and recent declines in operating cash flow suggest potential liquidity concerns.

Income Statement

The company's revenue has shown volatility over the years, with a decrease from 2022 to 2024. Gross profit margins have remained strong, averaging around 35%. Net income has improved in 2024 compared to the losses in previous years, signaling a recovery. However, net profit margins have been inconsistent, indicating potential profitability challenges.

Balance Sheet

The company has a stable equity position with a debt-to-equity ratio of 0.34 in 2024, lower than the previous year, indicating manageable leverage. The equity ratio remains above 50%, highlighting a solid financial foundation. However, the decrease in cash reserves over time suggests potential liquidity management issues.

Cash Flow

Operating cash flow has fluctuated significantly, with a concerning drop to zero in 2024. This instability raises questions about the company's ability to generate consistent cash flow from operations. The lack of free cash flow growth further indicates potential challenges in maintaining positive cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84B	1.99B	2.16B	2.38B	2.10B	696.96M
Gross Profit	687.68M	687.40M	738.43M	815.68M	650.98M	304.87M
EBITDA	427.18M	428.00M	391.01M	436.35M	369.94M	164.35M
Net Income	172.29M	167.29M	-116.11M	-528.48M	287.55M	-386.88M
Balance Sheet
Total Assets	6.88B	7.05B	7.45B	7.92B	8.04B	8.15B
Cash, Cash Equivalents and Short-Term Investments	904.45M	941.58M	1.04B	678.57M	800.95M	2.36B
Total Debt	1.16B	1.28B	1.90B	2.82B	2.65B	2.97B
Total Liabilities	2.98B	3.23B	3.76B	4.32B	4.13B	4.40B
Stockholders Equity	3.89B	3.80B	3.69B	3.60B	3.91B	3.76B
Cash Flow
Free Cash Flow	214.34M	182.32M	195.57M	136.72M	-487.35M	-549.44M
Operating Cash Flow	351.48M	373.99M	383.40M	386.05M	77.83M	43.18M
Investing Cash Flow	-29.84M	185.90M	439.17M	-372.80M	-868.84M	-3.85B
Financing Cash Flow	-455.14M	-657.76M	-429.50M	-143.20M	-653.16M	5.31B

Viva Biotech Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1873, the sentiment is Positive. The current price of 2.02 is above the 20-day moving average (MA) of 1.96, below the 50-day MA of 2.17, and above the 200-day MA of 1.95, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1873.

Viva Biotech Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2696	66 Neutral	HK$34.00B	38.20	27.37%	―	2.57%	18.79%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1873	51 Neutral	HK$4.27B	23.14	4.45%	―	-8.11%	―
2157	40 Underperform	HK$10.09B	-48.22	-21.42%	―	240.05%	-140.09%
1877	38 Underperform	HK$36.02B	-22.66	-15.06%	―	38.56%	48.26%

Viva Biotech Holdings Corporate Events

Viva Biotech Grants Share Options to Boost Employee Engagement

Viva Biotech Holdings announced the grant of 8,580,000 share options to 44 eligible employees, who are core members of its CDMO operations. These share options are part of the company’s Post-IPO Share Option Scheme and are subject to performance targets, with vesting dates spread across 2028 to 2030. The grant aims to incentivize employees by aligning their performance with the company’s growth targets, which include significant revenue increases over the next few years. This move is expected to enhance employee commitment and drive the company’s growth in the competitive biotech industry.