Everest Medicines Ltd. (1952) AI Stock Analysis

• Market Cap: HK$17.68B
• Dividend Yield: N/A
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 102.73%
• EPS Growth: 38.42%
• Country: HK
• Employees: 665
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.84
• Shares Outstanding: 353,550,380
• 10 Day Avg. Volume: 3,556,287
• 30 Day Avg. Volume: 3,138,138
• PEG Ratio: -0.70
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 20.64
• P/FCF Ratio: -19.58
• 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: HK$55.00
• Price Target Upside: 6.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.27
• Revenue Forecast (FY): HK$2.10B

• Rating: 45 Neutral
• Price Target: HK$46.00 ▼(-10.68% Downside)

The overall stock score is primarily influenced by financial performance challenges, including profitability and cash flow issues, despite strong revenue growth. Technical analysis indicates a bearish trend, and valuation metrics reflect ongoing losses, impacting the stock's attractiveness.

Positive Factors

Revenue Growth

Substantial revenue growth indicates successful market penetration and increasing demand for the company's innovative therapies.

Strategic Partnerships

Partnerships provide funding and resources for R&D, boosting product pipeline and competitive positioning in the biotech industry.

Balance Sheet Health

A strong balance sheet with low debt enhances financial stability and resilience, providing a solid foundation for future growth.

Negative Factors

Profitability Challenges

Struggles with profitability can hinder long-term sustainability and limit reinvestment in growth opportunities.

Cash Flow Issues

Ongoing negative cash flows can strain liquidity and necessitate external financing, impacting financial flexibility.

High Expenses

High operational costs reduce net income, affecting overall profitability and ability to invest in future growth.

Everest Medicines Ltd. Business Overview & Revenue Model

Company Description

Everest Medicines Limited, a biopharmaceutical company, engages in discovery, licensing, clinical development, and commercialization of therapies to address critical unmet medical needs in Greater China and other Asia Pacific markets. Its pipeline products include eleven clinical-stage drug candidates for the treatment of oncology, immunology, cardio-renal, and infectious diseases. Everest Medicines Limited was incorporated in 2017 and is headquartered in Shanghai, China.

How the Company Makes Money

Everest 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

Everest Medicines Ltd. shows impressive revenue growth but struggles with profitability and cash flow management. The balance sheet is strong with a low debt-to-equity ratio, but negative net income and cash flow issues highlight significant operational challenges.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	851.28M	706.68M	125.93M	12.79M	54.00K	0.00
Gross Profit	597.21M	528.89M	91.52M	8.15M	31.00K	0.00
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 Assets	4.93B	4.96B	5.77B	6.61B	6.65B	7.48B
Cash, Cash Equivalents and Short-Term Investments	1.59B	1.60B	2.35B	1.65B	2.64B	4.48B
Total Debt	708.72M	575.61M	510.63M	534.64M	485.03M	447.33M
Total Liabilities	1.01B	886.05M	804.10M	960.25M	753.83M	636.11M
Stockholders Equity	3.93B	4.07B	4.97B	5.65B	5.89B	6.84B
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 Flow	423.71M	974.40M	752.50M	-1.03B	-975.82M	-519.93M
Financing Cash Flow	171.64M	37.80M	10.10M	-25.31M	-76.51M	5.64B

Everest Medicines Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1952, the sentiment is Positive. The current price of 51.5 is above the 20-day moving average (MA) of 45.60, above the 50-day MA of 47.63, and below the 200-day MA of 54.99, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 79.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1952.

Everest Medicines Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6826	64 Neutral	HK$10.51B	13.75	6.69%	4.39%	-8.54%	-9.46%
2171	53 Neutral	HK$8.40B	-14.90	-42.46%	―	1219.19%	25.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1952	45 Neutral	HK$17.68B	―	-15.75%	―	102.73%	38.42%
2162	41 Neutral	HK$15.27B	-52.49	-8.79%	―	964.40%	65.90%
9969	40 Underperform	HK$19.88B	-93.34	-3.36%	―	58.24%	38.85%
2157	40 Underperform	HK$9.89B	-45.83	-21.42%	―	240.05%	-140.09%

Everest Medicines Ltd. Corporate Events

Everest Medicines Expands into Ophthalmology with VIS-101 Agreement

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.

Everest Medicines Grants Options to Chairman to Enhance Governance

Everest Medicines Ltd. announced the grant of 1,237,374 options to Mr. Yifang Wu, an executive director and chairman of the board, under the Post-IPO Share Option Scheme. This move is part of the company’s strategy to align its remuneration policy with market standards and enhance operational efficiency. The options, which have no performance targets, are set to vest equally over four years and are expected to contribute to the company’s sustainable development and good corporate governance.

Everest Medicines Announces Leadership Changes

Everest Medicines Ltd. announced significant changes in its board of directors, effective October 10, 2025. Mr. Wei Fu has been re-designated as a non-executive director and appointed as honorary chairman, stepping down from his roles as chairman of the board and committees to focus on other business endeavors. Mr. Yifang Wu has been appointed as the new executive director and chairman, indicating a strategic leadership transition aimed at guiding the company’s future growth and operations.

Everest Medicines Announces Board Composition to Strengthen Governance

Everest Medicines Ltd. has announced the composition of its board of directors, which includes a mix of executive, non-executive, and independent non-executive directors. This announcement reflects the company’s commitment to strong governance and strategic oversight, which is crucial for its continued growth and competitive positioning in the biopharmaceutical industry.

Everest Medicines Grants New Options and Awards to Employees

Everest Medicines Ltd. announced the grant of 74,000 options under its Post-IPO Share Option Scheme and 234,800 awards under its Pre-IPO ESOP on October 2, 2025. These grants are part of the company’s strategy to attract, retain, and incentivize employees, aligning with its remuneration policy to enhance operational efficiency. The options have a seven-year exercise period with a vesting schedule over four years, and they do not include performance targets, which the Remuneration Committee considers competitive and consistent with the company’s objectives.