JW (Cayman) Therapeutics Co. Ltd. (2126) AI Stock Analysis

• Market Cap: HK$1.17B
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: 2.45%
• EPS Growth: 2.58%
• Country: HK
• Employees: 281
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.70
• Shares Outstanding: 416,473,240
• 10 Day Avg. Volume: 1,852,649
• 30 Day Avg. Volume: 2,667,300
• PEG Ratio: 0.04
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 3.14
• P/FCF Ratio: -1.43
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$3.00 ▲(6.38% Upside)

The overall stock score is primarily impacted by the company's financial performance, which shows strong revenue growth but significant profitability challenges. Technical analysis indicates bearish momentum, while valuation metrics are unfavorable due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for JW Therapeutics' innovative cell therapies, supporting long-term market expansion and product adoption.

Strong Cash Position

A strong cash position provides JW Therapeutics with the financial flexibility to invest in R&D and strategic initiatives, crucial for sustaining growth in the biotech sector.

Low Debt-to-Equity Ratio

A low debt-to-equity ratio indicates financial prudence, reducing risk and enhancing the company's ability to weather economic fluctuations.

Negative Factors

Negative Profitability

Ongoing negative profitability challenges JW Therapeutics' ability to generate sustainable earnings, which could impact long-term viability and investor confidence.

Negative Operating Cash Flow

Negative operating cash flow indicates difficulties in generating cash from core operations, potentially hindering the company's ability to fund growth without external financing.

Reliance on External Funding

Dependence on external funding for operations and investments suggests vulnerability to market conditions and could limit strategic flexibility if funding becomes constrained.

JW (Cayman) Therapeutics Co. Ltd. Business Overview & Revenue Model

Company Description

JW (Cayman) Therapeutics Co. Ltd, a clinical stage cell therapy company, focuses on developing, manufacturing, and commercializing cell-based immunotherapies for hematological cancers and solid tumors. The company offers cell-based immunotherapies, including CAR-T treatments, which is a treatment method that uses human immune cells to fight cancer. Its lead product candidate is Carteyva (relmacabtagene autoleucel), an anti-CD19 chimeric antigen receptor T-cell (CAR-T) therapy for the treatment of a range of hematological cancers. The company's pipeline products include JWCAR129, an autologous CAR-T therapy for the treatment of multiple myeloma; JWATM204, a TCR T-cell therapy candidate for the treatment of HCC; and JWATM203, an autologous T-cell receptor mimic T-cell therapy targeting alpha-fetoprotein for the treatment of hepatocellular carcinoma. JW (Cayman) Therapeutics Co. Ltd was founded in 2016 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

JW (Cayman) Therapeutics generates revenue through several key streams. Primarily, the company earns money from the commercialization of its proprietary cell therapy products once they receive regulatory approval and are launched in the market. Additionally, JW Therapeutics may engage in strategic partnerships and collaborations with other pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties based on product sales. The company might also benefit from government grants and funding aimed at supporting innovative therapeutic development. Furthermore, the increasing demand for advanced cancer treatments and the growing prevalence of cancer worldwide contribute significantly to its revenue potential.

JW (Cayman) Therapeutics Co. Ltd. Financial Statement Overview

Summary

The company shows consistent revenue growth but struggles with profitability, reporting negative net income and EBIT margins. Despite a strong cash position and low debt-to-equity ratio, negative operating cash flow and free cash flow highlight ongoing financial challenges.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from 2020 onwards. However, profitability remains a significant issue as the company has reported negative net income and EBIT margins throughout the years, indicating ongoing operational challenges. The gross profit margin has improved slightly, yet the high net losses overshadow these gains.

Balance Sheet

The company's balance sheet is relatively stable with a strong cash position, as indicated by the significant cash and cash equivalents. The debt-to-equity ratio remains low, suggesting conservative leverage. However, the continued net losses have adversely affected the return on equity, which remains negative. The equity ratio indicates a solid equity base compared to total assets, pointing to financial stability despite ongoing losses.

Cash Flow

Operating cash flow has been consistently negative, reflecting challenges in generating cash from operations. The company has managed to maintain a positive cash position largely through financing activities. Free cash flow remains negative, indicating that the company is not yet self-sustaining and relies on external funding to cover operational and capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	177.75M	158.22M	173.86M	145.70M	30.80M	0.00
Gross Profit	98.69M	77.32M	88.22M	58.76M	9.04M	0.00
EBITDA	-256.23M	-381.58M	-655.75M	-752.27M	-738.70M	-454.04M
Net Income	-617.62M	-590.62M	-768.00M	-846.13M	-702.33M	-1.66B
Balance Sheet
Total Assets	1.42B	1.68B	2.15B	2.79B	3.12B	3.78B
Cash, Cash Equivalents and Short-Term Investments	647.04M	762.53M	1.01B	1.39B	1.84B	2.63B
Total Debt	372.46M	422.40M	318.80M	279.13M	147.03M	123.59M
Total Liabilities	510.83M	511.20M	462.26M	437.06M	325.75M	349.76M
Stockholders Equity	908.61M	1.17B	1.68B	2.35B	2.79B	3.43B
Cash Flow
Free Cash Flow	-202.73M	-348.87M	-413.00M	-613.60M	-634.28M	-385.24M
Operating Cash Flow	-200.13M	-333.44M	-398.42M	-536.72M	-561.20M	-261.00M
Investing Cash Flow	-2.84M	-15.43M	9.90M	-124.08M	-137.13M	-91.91M
Financing Cash Flow	-20.67M	90.49M	275.00K	112.35M	-30.62M	2.86B

JW (Cayman) Therapeutics Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2126, the sentiment is Negative. The current price of 2.82 is below the 20-day moving average (MA) of 3.07, below the 50-day MA of 3.46, and below the 200-day MA of 3.21, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 5.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2126.

JW (Cayman) Therapeutics Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9966	53 Neutral	HK$9.97B	40.68	13.34%	―	206.58%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2616	42 Neutral	HK$8.17B	-18.58	-95.84%	―	-55.64%	-158.67%
2126	41 Neutral	HK$1.17B	-1.71	-51.56%	―	2.45%	2.58%
2157	40 Underperform	HK$9.89B	-45.83	-21.42%	―	240.05%	-140.09%
2179	39 Underperform	HK$2.63B	-3.72	-129.05%	―	―	-18.99%

JW (Cayman) Therapeutics Co. Ltd. Corporate Events

JW Cayman and Regeneron Amend Collaboration for Oncology Product Development

JW (Cayman) Therapeutics Co. Ltd. has announced an amendment to its collaboration agreement with Regeneron, initially established with 2seventy bio, for the development of the MAGE-A4 Product for oncology in Greater China. The amendment includes Regeneron funding certain development activities and making milestone payments to JW Cayman, while also granting Regeneron a non-exclusive license for the Drug Product Process, which allows Regeneron to exploit its products globally, excluding the MAGE-A4 Product in the JW Territory. This strategic move is expected to bolster JW Cayman’s operational capabilities and strengthen its position in the oncology market.

JW Therapeutics Advances SLE Treatment with Promising Phase I Results

JW Therapeutics has submitted Phase I study data of Relmacabtagene autoleucel injection for treating active systemic lupus erythematosus (SLE) in Chinese adults to the National Medical Products Administration of China. The study demonstrated significant efficacy and a favorable safety profile for Relma-cel, with all 12 patients achieving SRI-4 remission and drug-free status, highlighting its potential as a new treatment option for SLE, a condition with significant unmet medical needs in China.

JW Therapeutics Advances with In-House Lentiviral Vector for Carteyva®

JW Therapeutics announced that the National Medical Products Administration of China has accepted its post-marketing supplementary application for Carteyva®, which now uses an in-house produced lentiviral vector. This development is significant as it ensures a stable supply and reduces costs, enhancing the commercial value of Carteyva® and strengthening JW Therapeutics’ position in the competitive cell therapy market.

JW Therapeutics Delays Circular Dispatch for Incentivization Scheme

JW (Cayman) Therapeutics Co. Ltd announced a delay in the dispatch of a circular related to the grant of options under its Post-IPO Incentivization Scheme. The company requires additional time to finalize the necessary information, now expecting to send the circular by December 31, 2025. This delay may impact shareholder expectations and timelines for the incentivization scheme.

JW Therapeutics Announces Share Options Grant to CEO

JW (Cayman) Therapeutics Co. Ltd. has announced the grant of 4,204,490 share options to Mr. Min Liu, the company’s chairman and CEO, under its Post-IPO Incentivization Scheme. This grant is subject to shareholder approval as it exceeds 1% of the company’s issued shares, highlighting the company’s commitment to aligning leadership incentives with shareholder interests.