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HBM Holdings Ltd. (HK:2142)
:2142
Hong Kong Market
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HBM Holdings Ltd. (2142) AI Stock Analysis

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HK:2142

HBM Holdings Ltd.

(2142)

Rating:54Neutral
Price Target:
HK$10.00
▲(6.38%Upside)
The overall stock score is primarily influenced by the company's mixed financial performance and high valuation concerns. While positive technical indicators provide some support, the lack of profitability and cash flow issues are significant risks. The high P/E ratio further suggests valuation concerns, impacting the overall attractiveness of the stock.

HBM Holdings Ltd. (2142) vs. iShares MSCI Hong Kong ETF (EWH)

HBM Holdings Ltd. Business Overview & Revenue Model

Company DescriptionHBM Holdings Ltd. (2142) is a diversified investment holding company primarily engaged in the sectors of life sciences and healthcare. The company focuses on the development, manufacturing, and commercialization of innovative pharmaceutical products and healthcare solutions. It operates through a portfolio of subsidiaries and investments that contribute to its growth in the biotech and medical technology industries.
How the Company Makes MoneyHBM Holdings Ltd. generates revenue through a combination of direct sales of its pharmaceutical products, licensing agreements, and strategic partnerships with other biotech and healthcare companies. The company invests in research and development to innovate new treatments and therapies, which are then brought to market either independently or through collaborations. Revenue is further supplemented by royalties and milestone payments from licensing its proprietary technologies and intellectual property. Its earnings are also bolstered by equity investments in promising startups and established companies in the healthcare sector, which may lead to capital gains and dividends.

HBM Holdings Ltd. Financial Statement Overview

Summary
HBM Holdings Ltd. exhibits mixed financial performance with strong gross margins, but declining profitability and cash flow issues. The balance sheet shows stability with improving leverage ratios, yet the lack of revenue growth and operational cash generation could hinder long-term growth prospects. Operational inefficiencies and cash flow sustainability need to be addressed.
Income Statement
45
Neutral
The company has shown inconsistent revenue growth with a significant drop from 2023 to 2024. Gross profit margin remains strong at 88.2% in 2024, indicating good cost control. However, the net profit margin has declined to 7.3% in 2024, reflecting reduced profitability compared to 25.5% in 2023. The negative EBIT and EBITDA margins in 2024 highlight operational inefficiencies.
Balance Sheet
60
Neutral
The balance sheet reflects a stable equity position with an equity ratio of 57.9% in 2024. The debt-to-equity ratio improved to 0.49 from 0.55 in 2023, indicating better leverage management. However, the high level of cash compared to total debt suggests liquidity, yet the declining total assets may pose future challenges to asset management.
Cash Flow
30
Negative
The cash flow statement shows challenges with no positive operating cash flow and zero free cash flow in 2024. This indicates potential issues in generating cash from operations, which could affect financial flexibility. The absence of free cash flow growth further underscores cash flow constraints.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue38.10M89.50M40.66M4.31M14.11M
Gross Profit33.61M87.47M40.53M4.17M13.66M
EBITDA-896.00K31.18M-115.50M-130.84M-290.91M
Net Income2.78M22.80M-137.27M-137.88M-296.54M
Balance Sheet
Total Assets215.01M228.48M232.12M282.36M388.74M
Cash, Cash Equivalents and Short-Term Investments167.22M140.72M171.71M216.30M356.95M
Total Debt61.34M66.01M90.93M19.47M1.73M
Total Liabilities90.96M108.85M139.62M59.45M27.73M
Stockholders Equity124.45M119.99M92.83M223.19M361.19M
Cash Flow
Free Cash Flow30.44M-21.60M-118.40M-139.81M-35.99M
Operating Cash Flow30.68M-19.12M-99.96M-125.61M-35.39M
Investing Cash Flow6.55M28.09M137.59M-76.90M-93.53M
Financing Cash Flow-10.24M-29.14M70.58M1.59M357.86M

HBM Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.40
Price Trends
50DMA
8.61
Positive
100DMA
8.40
Positive
200DMA
5.41
Positive
Market Momentum
MACD
0.34
Negative
RSI
51.78
Neutral
STOCH
52.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2142, the sentiment is Positive. The current price of 9.4 is above the 20-day moving average (MA) of 8.70, above the 50-day MA of 8.61, and above the 200-day MA of 5.41, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 51.78 is Neutral, neither overbought nor oversold. The STOCH value of 52.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2142.

HBM Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$6.91B173.081.43%2433.62%
65
Neutral
HK$9.19B50.279.52%185.36%
60
Neutral
HK$16.77B6.05-6.36%3.69%11.62%-23.89%
57
Neutral
HK$14.78B-51.40%58.75%-1310.16%
54
Neutral
HK$7.54B311.032.28%-57.55%-87.49%
49
Neutral
HK$9.72B-22.23%-14.17%76.00%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2142
HBM Holdings Ltd.
9.02
7.72
593.85%
HK:2616
CStone Pharmaceuticals
6.74
5.50
443.55%
HK:2256
Abbisko Cayman Limited
10.16
7.42
270.80%
HK:2157
Lepu Biopharma Co. Ltd. Class H
7.95
4.83
154.81%
HK:9966
Alphamab Oncology
9.43
7.21
324.77%

HBM Holdings Ltd. Corporate Events

HBM Holdings to Present Promising Cancer Therapy Data at ESMO 2025
Jul 30, 2025

HBM Holdings Ltd. announced that it will present Phase II clinical data for its anti-CTLA-4 antibody, porustobart (HBM4003), in combination with tislelizumab, at the ESMO Congress 2025. This presentation will highlight the efficacy and safety of the treatment for microsatellite stable metastatic colorectal cancer, potentially enhancing the company’s position in the oncology market.

HBM Holdings Projects Significant Profit Growth for First Half of 2025
Jul 28, 2025

HBM Holdings Ltd. has issued a positive profit alert, anticipating a significant profit increase for the first half of 2025, ranging between approximately US$68 million to US$74 million. This growth is primarily driven by strategic collaborations, including a partnership with AstraZeneca, and successful out-licensing and business development activities that have contributed to a stable revenue stream.

HBM Holdings’ Investee NK Cell-Tech Secures Major Financing
Jul 9, 2025

HBM Holdings Ltd. announced that its investee company, Shanghai NK Cell Technology Co., LTD, has successfully completed an A+++ round of financing, raising nearly RMB100 million. This funding will be used to advance clinical trials and support the development of NK Cell-Tech’s product pipeline, reflecting strong investor confidence in its innovative immunotherapy platform.

HBM Holdings Announces Share Option Grant to Employees
Jul 2, 2025

HBM Holdings Limited, a company incorporated in the Cayman Islands, has announced the grant of 3,465,000 share options to three non-connected employees under its Share Option Scheme. The options, granted on June 30, 2025, are set at an exercise price of HK$8.604 per share and will vest over a period of four years, subject to performance appraisals. This initiative aims to incentivize employees and align their interests with the company’s long-term goals, potentially enhancing employee retention and performance.

HBM Holdings Limited Establishes Nomination Committee with Defined Roles
Jun 30, 2025

HBM Holdings Limited has outlined the terms of reference for its Nomination Committee, which was established by the board of directors in August 2020. The committee’s primary responsibilities include identifying and recommending candidates for the board, overseeing board performance evaluations, and developing nomination guidelines in line with applicable laws and regulations. The committee is composed of a majority of independent non-executive directors and meets at least annually to fulfill its duties, ensuring a structured and transparent process for board nominations and governance.

HBM Holdings Partners with Otsuka for Global Development of HBM7020
Jun 23, 2025

HBM Holdings Ltd. has entered a strategic collaboration with Otsuka Pharmaceutical Co., Ltd. to advance the development and commercialization of HBM7020, a BCMAxCD3 bispecific T-cell engager for autoimmune diseases. This agreement grants Otsuka an exclusive license for global rights, excluding Greater China, and includes potential payments to HBM Holdings of up to $670 million, as well as tiered royalties on future sales. This partnership is expected to enhance HBM’s positioning in the T-cell engager market and may lead to further collaborations.

HBM Holdings Boosts Shareholder Value with Strategic Repurchases and Collaborations
Jun 18, 2025

HBM Holdings Ltd. announced significant progress in its share repurchase program, having repurchased HK$130 million worth of shares in 2025, reflecting its commitment to enhancing shareholder value. The company has also entered into multiple strategic collaborations, including a major partnership with AstraZeneca, which could yield up to US$4.4 billion in milestone payments, underscoring its strong market positioning and potential for growth.

HBM Holdings Secures Patent Victory, Strengthening Biotech Innovations
Jun 16, 2025

HBM Holdings Ltd. announced that the China National Intellectual Property Administration upheld its patent for a method of producing fully human heavy chain-only antibodies, following a challenge by Biocytogen Pharmaceuticals. This decision reinforces HBM’s intellectual property rights, allowing the company to continue leveraging its patented technology to develop innovative therapies, which could have significant implications for its market positioning and stakeholders.

HBM Holdings Subsidiary Partners with Visterra for Biotherapeutic Advancements
Jun 12, 2025

HBM Holdings Ltd. announced that its subsidiary, Nona Biosciences, has entered into a license agreement with Visterra, Inc. to advance biotherapeutic treatments for immune-mediated and autoimmune diseases. This collaboration leverages Nona Biosciences’ HCAb Harbour Mice® technology, which is recognized for its reduced immunogenicity and versatility, potentially enhancing HBM Holdings’ market position in the biotechnology sector.

HBM Holdings Announces Successful AGM Resolutions
Jun 11, 2025

HBM Holdings Limited, incorporated in the Cayman Islands, announced the successful passage of all proposed resolutions during its Annual General Meeting held on June 11, 2025. Key resolutions included the adoption of financial statements, re-election of directors, auditor reappointment, and granting mandates for share issuance and repurchase. The AGM results reflect strong shareholder support for the company’s strategic decisions, potentially impacting its future operational and financial strategies.

HBM Holdings Appoints Dr. Ian Yi Liu as Joint Company Secretary
Jun 10, 2025

HBM Holdings Limited has announced the appointment of Dr. Ian Yi Liu as a joint company secretary, effective June 9, 2025. Dr. Liu, who joined the company in March 2025 as a Senior Vice President and Global Head of Legal, brings extensive legal expertise and industry experience, having previously served as company secretary for Breas Medical Holdings AB and advised Shanghai Fosun Pharmaceutical. This strategic appointment is expected to enhance the company’s corporate governance and operational efficiency.

HBM Holdings Announces Change in Company Secretary
May 30, 2025

HBM Holdings Limited has announced a change in its company secretary position. Ms. Yifan Gao will cease to be a joint company secretary due to a change in her work arrangements, effective May 26, 2025. She has confirmed no disagreements with the board. Mr. Wing Yat Christopher Lui will continue as the sole company secretary, possessing the necessary qualifications and experience. The board expressed gratitude for Ms. Gao’s contributions during her tenure.

HBM Holdings to Present MesoC2 Clinical Study at ASCO 2025
May 23, 2025

HBM Holdings Ltd. has announced that its first-in-human Phase 1 clinical study design for MesoC2, a mesothelin-targeting ADC, will be presented at the 2025 ASCO Annual Meeting by its collaborator, Pfizer. MesoC2, developed using HBM’s proprietary platforms, is being tested for safety and efficacy in patients with advanced solid tumors, potentially positioning it as a globally best-in-class therapeutic option.

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: Jul 26, 2025