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Everest Medicines Ltd. (HK:1952)
:1952
Hong Kong Market

Everest Medicines Ltd. (1952) AI Stock Analysis

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HK:1952

Everest Medicines Ltd.

(1952)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
HK$41.00
▼(-20.39% Downside)
The score is held down primarily by ongoing unprofitability and negative cash generation despite strong revenue growth and a relatively stable balance sheet. Technicals are mixed-to-weak with the stock still below key longer-term moving averages, and valuation lacks support due to losses and no dividend yield provided.
Positive Factors
Revenue Growth
Sustained revenue expansion to 706.68M demonstrates successful commercial traction and market penetration. This durable top-line growth supports scale benefits, funds continued R&D and commercialization, and improves the odds of reaching profitability over a multi-quarter horizon.
Equity-funded Balance Sheet
Low leverage and a strong equity ratio provide financial resilience for a biotech firm with lengthy development cycles. This structural balance-sheet strength reduces near-term refinancing risk, enables investment in pipelines, and supports enduring operational flexibility over 2-6 months.
High Gross Margin
A relatively high gross margin indicates favorable unit economics and product pricing power. Over time this supports absorption of operating expenses, higher incremental profitability as scale increases, and gives management levers to improve net margins if SG&A/R&D growth is managed.
Negative Factors
Persistent Unprofitability
Ongoing negative EBIT and net margins show the business has not yet converted revenue into profits. This structural unprofitability depresses ROE, necessitates continued funding, and poses a durable risk to shareholder returns unless operating leverage or margins materially improve.
Negative Cash Generation
Sustained negative operating and free cash flow forces reliance on external financing or equity raises, increasing dilution risk and constraining strategic optionality. For an R&D-intensive biotech, weak cash generation limits ability to fund trials, commercial rollout, or respond to setbacks.
High Operating Expenses
Elevated operating expenses relative to current revenue undermine the path to sustained profitability. Unless expense growth moderates or revenue scale accelerates, high fixed and R&D costs will continue to pressure margins and extend the timeline to durable positive earnings.

Everest Medicines Ltd. (1952) vs. iShares MSCI Hong Kong ETF (EWH)

Everest Medicines Ltd. Business Overview & Revenue Model

Company DescriptionEverest Medicines Ltd. (1952) is a biopharmaceutical company focused on developing and commercializing innovative medicines for unmet medical needs in Asia. The company operates primarily in the therapeutic areas of oncology, autoimmune diseases, and infectious diseases. Everest Medicines is dedicated to bringing advanced therapies to patients, leveraging strategic partnerships and collaborations to enhance its product pipeline and market reach.
How the Company Makes MoneyEverest Medicines generates revenue primarily through the commercialization of its proprietary drug candidates and partnerships with other pharmaceutical companies. Key revenue streams include product sales from approved therapies, licensing agreements, and collaboration deals that may involve milestone payments and royalties based on sales. The company also benefits from strategic alliances with global biopharmaceutical firms, which can provide funding and resources for research and development, thus enhancing its financial performance and market presence.

Everest Medicines Ltd. Financial Statement Overview

Summary
Strong revenue growth through 2024 and a solid equity-funded balance sheet are positives, but persistent losses (negative EBIT and net margins) and negative operating/free cash flow keep financial quality weak despite a high gross margin.
Income Statement
45
Neutral
Everest Medicines Ltd. has shown substantial revenue growth from 2020 to 2024, with revenue increasing from zero to 706.68 million. However, the company is struggling with profitability, as evidenced by persistent negative EBIT and net income margins, indicating ongoing operational challenges. The gross profit margin is relatively high, suggesting good product profitability, but overall high expenses are impacting net profitability.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio is low, reflecting limited financial leverage, which is positive for stability. However, this is countered by negative net income, leading to a negative return on equity, impacting overall shareholder returns. The equity ratio is strong, indicating a solid asset base funded by equity, which provides some financial resilience.
Cash Flow
40
Negative
Everest Medicines Ltd. is facing challenges with negative operating cash flow and free cash flow, highlighting cash generation issues. However, there is an improvement in free cash flow from 2023 to 2024. The company has relied on significant financing activities in prior years, affecting cash positions positively, but ongoing negative cash flows remain a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue851.28M706.68M125.93M12.79M54.00K0.00
Gross Profit597.21M528.89M91.52M8.15M31.00K0.00
EBITDA-276.68M-670.04M-744.63M-198.91M-972.78M-683.03M
Net Income-658.75M-1.04B-844.46M-247.28M-1.01B-5.68B
Balance Sheet
Total Assets4.93B4.96B5.77B6.61B6.65B7.48B
Cash, Cash Equivalents and Short-Term Investments1.59B1.60B2.35B1.65B2.64B4.48B
Total Debt708.72M575.61M510.63M534.64M485.03M447.33M
Total Liabilities1.01B886.05M804.10M960.25M753.83M636.11M
Stockholders Equity3.93B4.07B4.97B5.65B5.89B6.84B
Cash Flow
Free Cash Flow-205.84M-744.92M-1.04B-1.59B-1.71B-991.83M
Operating Cash Flow-181.47M-679.51M-769.19M-1.16B-729.94M-471.90M
Investing Cash Flow423.71M974.40M752.50M-1.03B-975.82M-519.93M
Financing Cash Flow171.64M37.80M10.10M-25.31M-76.51M5.64B

Everest Medicines Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price51.50
Price Trends
50DMA
42.68
Negative
100DMA
47.90
Negative
200DMA
53.06
Negative
Market Momentum
MACD
-0.79
Negative
RSI
43.74
Neutral
STOCH
41.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1952, the sentiment is Negative. The current price of 51.5 is above the 20-day moving average (MA) of 39.71, above the 50-day MA of 42.68, and below the 200-day MA of 53.06, indicating a bearish trend. The MACD of -0.79 indicates Negative momentum. The RSI at 43.74 is Neutral, neither overbought nor oversold. The STOCH value of 41.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1952.

Everest Medicines Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$11.00B14.476.69%4.28%-8.49%-9.46%
52
Neutral
HK$17.44B-82.29-3.36%58.24%38.85%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
45
Neutral
HK$14.32B-18.15-15.75%102.73%38.42%
44
Neutral
HK$9.19B-15.58-42.46%1219.19%25.15%
41
Neutral
HK$16.21B-54.55-8.79%964.40%65.90%
40
Underperform
HK$9.20B-43.25-21.42%240.05%-140.09%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1952
Everest Medicines Ltd.
38.96
-2.19
-5.32%
HK:9969
InnoCare Pharma Ltd.
11.72
6.19
111.97%
HK:2157
Lepu Biopharma Co. Ltd. Class H
4.66
1.77
61.25%
HK:2162
Keymed Biosciences, Inc.
55.65
26.50
90.91%
HK:2171
CARsgen Therapeutics Holdings Ltd.
15.50
5.42
53.77%
HK:6826
Shanghai Haohai Biological Technology Co., Ltd. Class H
25.92
2.75
11.87%

Everest Medicines Ltd. Corporate Events

Everest Medicines Delays Shareholder Circular on Commercialization Service Agreement
Jan 16, 2026

Everest Medicines Limited has announced a delay in sending a shareholder circular relating to its continuing connected transactions under a Commercialization Service Agreement. The circular, which will include details of the agreement, recommendations from the Independent Board Committee, and advice from an Independent Financial Adviser ahead of an extraordinary general meeting, was originally expected by 16 January 2026 but will now be published on or before 4 February 2026 due to additional time needed to prepare and finalize the information, potentially shifting the timeline for shareholder review and approval of the transaction.

The most recent analyst rating on (HK:1952) stock is a Hold with a HK$38.00 price target. To see the full list of analyst forecasts on Everest Medicines Ltd. stock, see the HK:1952 Stock Forecast page.

Everest Medicines Chairman Boosts Stake With HK$1.14 Million Share Purchase
Dec 31, 2025

Everest Medicines chairman and executive director Yifang Wu has increased his stake in the company by purchasing 30,000 shares on the open market on 31 December 2025 for about HK$1.14 million, at an average price of roughly HK$37.98 per share. The board said the on-market share purchase reflects Wu’s strong confidence in the company’s long-term prospects and development, although it cautioned existing shareholders and potential investors to exercise care when trading the stock.

The most recent analyst rating on (HK:1952) stock is a Hold with a HK$46.00 price target. To see the full list of analyst forecasts on Everest Medicines Ltd. stock, see the HK:1952 Stock Forecast page.

Everest Medicines Warns on NEFECON Patent as Generic Wins China Approval
Dec 29, 2025

Everest Medicines has responded to the approval of a generic version of its kidney disease drug NEFECON in China by stressing that NEFECON remains protected under a valid Chinese patent until May 2029, with the patent duly registered on the national platform for marketed drugs. Citing China’s Patent Law and the rules governing early settlement of drug patent disputes, the company warned that any manufacture, sale, promotion or import of products infringing this patent before its expiry would constitute infringement, and reminded generic applicants who have pledged not to market before patent expiry that they must honor this commitment; Everest pledged to take lawful action against suspected violations while reiterating its broader stance that robust IP enforcement is critical to fair competition, sustained innovation and continued patient access to innovative therapies in China.

The most recent analyst rating on (HK:1952) stock is a Hold with a HK$46.00 price target. To see the full list of analyst forecasts on Everest Medicines Ltd. stock, see the HK:1952 Stock Forecast page.

Everest Medicines Directors and Major Shareholder Increase Stake, Signaling Confidence
Dec 14, 2025

Everest Medicines Ltd. announced a significant increase in shareholding by its directors and a substantial shareholder, CBC Group. This move, involving a purchase of shares worth over HK$38 million, reflects strong confidence in the company’s future prospects and long-term development, potentially impacting its market positioning positively.

The most recent analyst rating on (HK:1952) stock is a Hold with a HK$46.00 price target. To see the full list of analyst forecasts on Everest Medicines Ltd. stock, see the HK:1952 Stock Forecast page.

Everest Medicines Announces Strategic Commercialization Agreement in China
Dec 11, 2025

Everest Medicines Ltd. has announced a Commercialization Service Agreement with Hasten, under which its subsidiary will provide commercialization services for certain products in China. This agreement, effective from December 11, 2025, will initially last for three years with automatic renewals. The subsidiary will handle various services including distribution, marketing, and sales forecasting. A deposit of RMB100,000,000 will be paid to Hasten, refundable based on sales targets. This agreement reflects Everest Medicines’ strategic focus on expanding its market presence in China.

The most recent analyst rating on (HK:1952) stock is a Hold with a HK$46.00 price target. To see the full list of analyst forecasts on Everest Medicines Ltd. stock, see the HK:1952 Stock Forecast page.

Everest Medicines Announces Board Composition and Committee Roles
Dec 11, 2025

Everest Medicines Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board also oversees three committees: audit, remuneration, and nomination, with specific directors assigned to each committee. This announcement provides clarity on the leadership structure of the company, potentially impacting its governance and strategic direction.

The most recent analyst rating on (HK:1952) stock is a Hold with a HK$46.00 price target. To see the full list of analyst forecasts on Everest Medicines Ltd. stock, see the HK:1952 Stock Forecast page.

Everest Medicines Expands into Ophthalmology with VIS-101 Agreement
Oct 29, 2025

Everest Medicines Ltd. has entered into an agreement with Visara, Inc. to develop and commercialize VIS-101, a novel bifunctional biologic, in Greater China and other Asian markets. This strategic collaboration allows Everest Medicines to expand into the ophthalmology sector, adding a commercially attractive asset to its late-stage product pipeline, potentially enhancing its market positioning and addressing significant unmet medical needs in the region.

The most recent analyst rating on (HK:1952) stock is a Hold with a HK$48.00 price target. To see the full list of analyst forecasts on Everest Medicines Ltd. stock, see the HK:1952 Stock Forecast page.

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: Jan 24, 2026