Lepu Biopharma Co. Ltd. Class H (2157) AI Stock Analysis

• Market Cap: HK$9.93B
• Dividend Yield: N/A
• Average Volume (3M): 13.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 240.05%
• EPS Growth: -140.09%
• Country: HK
• Employees: 498
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.02
• Shares Outstanding: 1,804,439,800
• 10 Day Avg. Volume: 11,565,494
• 30 Day Avg. Volume: 13,902,953
• PEG Ratio: >-0.01
• Price to Book (P/B): 5.92
• Price to Sales (P/S): 11.31
• P/FCF Ratio: -16.11
• 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$9.96
• Price Target Upside: 86.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$5.00 ▼(-6.37% Downside)

The overall stock score is primarily influenced by the company's weak financial performance, characterized by negative profitability and high leverage. Technical analysis further supports a bearish outlook, with the stock trading below key moving averages and showing oversold conditions. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield, making the stock less attractive to investors.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong market demand and successful product adoption, which can enhance long-term market position.

Product Portfolio

A diverse and innovative product portfolio in oncology positions the company well to capture market share in the growing cancer treatment sector.

Gross Profit Margin

A high gross profit margin suggests efficient production and pricing strategies, which can support future profitability as operational efficiencies improve.

Negative Factors

Negative Cash Flow

Consistently negative cash flow from operations indicates challenges in sustaining operations without external financing, risking long-term financial health.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and the need for strategic improvements to achieve sustainable profitability.

Lepu Biopharma Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Lepu Biopharma Co. Ltd. Class H (2157) is a biopharmaceutical company based in China, specializing in the research, development, manufacturing, and commercialization of innovative therapies and diagnostics. The company operates primarily in the fields of oncology, cardiovascular diseases, and autoimmune disorders, providing a range of products including monoclonal antibodies, biosimilars, and diagnostic kits. Lepu Biopharma is committed to improving healthcare outcomes through advanced biopharmaceutical solutions and is focused on expanding its presence both domestically and internationally.

How the Company Makes Money

Lepu Biopharma generates revenue primarily through the sale of its biopharmaceutical products, including proprietary drugs and biosimilars, which are marketed to hospitals and healthcare providers. The company also earns income from licensing agreements and collaborations with other pharmaceutical companies, allowing it to leverage its research and development capabilities for shared revenue opportunities. Additionally, Lepu Biopharma may receive grants and funding for its research initiatives, contributing to its overall financial performance. Significant partnerships with global healthcare firms enhance its product pipeline and market reach, further supporting its revenue growth.

Lepu Biopharma Co. Ltd. Class H Financial Statement Overview

Summary

Lepu Biopharma Co. Ltd. faces significant challenges in achieving profitability and maintaining financial stability. Despite revenue growth, the company's negative margins and high leverage indicate operational and financial risks. The negative cash flow position further underscores the need for strategic improvements to enhance liquidity and reduce reliance on debt financing.

Income Statement

The company has shown growth in total revenue from 2022 to 2024, with a significant increase in 2024. However, profitability remains a challenge with consistently negative net income, leading to negative net profit margins. The gross profit margin is strong at 79.65% for 2024, but the EBIT and EBITDA margins are negative, pointing to operational inefficiencies.

Balance Sheet

The company's balance sheet reflects a high level of debt with a debt-to-equity ratio of 1.20 in 2024, indicating potential leverage risk. Stockholders' equity has decreased over the years, affecting the equity ratio negatively. The company has sufficient cash reserves, but the decline in equity raises concerns about financial stability.

Cash Flow

Cash flow from operations is consistently negative, and free cash flow has also remained negative, reflecting challenges in generating cash from core activities. This poses a risk to the company's liquidity position, as it may need to rely on external financing for operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	700.45M	367.79M	225.35M	15.57M	0.00	0.00
Gross Profit	619.27M	292.97M	197.07M	13.57M	0.00	0.00
EBITDA	-72.37M	-311.94M	86.95M	-596.53M	-865.23M	-383.76M
Net Income	-177.20M	-411.38M	-22.10M	-689.05M	-1.01B	-581.85M
Balance Sheet
Total Assets	2.36B	2.28B	2.38B	2.53B	2.08B	2.42B
Cash, Cash Equivalents and Short-Term Investments	536.34M	464.91M	489.64M	678.20M	205.17M	761.40M
Total Debt	917.81M	850.16M	746.82M	690.30M	335.26M	203.08M
Total Liabilities	1.65B	1.60B	1.50B	1.63B	1.23B	921.89M
Stockholders Equity	745.26M	702.83M	896.90M	900.76M	836.71M	1.47B
Cash Flow
Free Cash Flow	-102.02M	-258.14M	-292.04M	-591.38M	-835.12M	-724.51M
Operating Cash Flow	-81.26M	-196.39M	-250.84M	-480.93M	-621.74M	-422.69M
Investing Cash Flow	-38.13M	-61.75M	18.26M	-74.66M	-3.89M	-749.67M
Financing Cash Flow	0.00	232.08M	-11.01M	1.03B	380.31M	1.39B

Lepu Biopharma Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2157, the sentiment is Negative. The current price of 5.34 is below the 20-day moving average (MA) of 5.64, below the 50-day MA of 6.18, and below the 200-day MA of 5.96, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 39.65 is Neutral, neither overbought nor oversold. The STOCH value of 17.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2157.

Lepu Biopharma Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2315	66 Neutral	HK$11.23B	75.05	16.13%	―	48.38%	―
1672	54 Neutral	HK$14.50B	-45.44	-12.74%	―	-76.58%	-4.90%
2171	53 Neutral	HK$9.02B	-15.42	-42.46%	―	1219.19%	25.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1541	41 Neutral	HK$5.31B	-7.48	-53.23%	―	29639.67%	23.30%
2162	41 Neutral	HK$15.32B	-52.74	-8.79%	―	964.40%	65.90%
2157	40 Underperform	HK$9.93B	-48.49	-21.42%	―	240.05%	-140.09%

Lepu Biopharma Co. Ltd. Class H Corporate Events

Lepu Biopharma Updates Articles of Association Following H Shares Issuance

Lepu Biopharma Co., Ltd. has announced amendments to its Articles of Association following the issuance of new H Shares, as approved by the China Securities Regulatory Commission. This move, which increases the company’s registered capital, is part of a broader strategy to enhance its capital structure and strengthen its market positioning.

Lepu Biopharma to Discuss RSU Scheme at 2025 EGM

Lepu Biopharma Co., Ltd. has announced the convening of its Second 2025 Extraordinary General Meeting (EGM) to discuss and potentially approve a series of resolutions related to its Restricted Share Unit (RSU) Scheme. The resolutions include the adoption of the RSU Scheme, setting a Scheme Mandate Limit for issuing new shares, and amending the company’s Articles of Association to reflect changes in the total number of issued shares. These measures are aimed at enhancing the company’s equity incentive mechanisms, potentially impacting its market positioning and shareholder value.

Lepu Biopharma Enters New Procurement Agreement with Lepu Medical

Lepu Biopharma Co., Ltd. has entered into a New Procurement Framework Agreement with Lepu Medical to continue their ongoing transactions, which include the supply of raw materials and services for clinical trials and employee welfare. This agreement, effective from January 1, 2026, to December 31, 2026, aims to ensure the continuation of procurement activities under normal commercial terms, with provisions for renewal subject to legal and regulatory requirements.

Lepu Biopharma Announces Supervisor Resignation

Lepu Biopharma Co., Ltd. announced the resignation of Mr. Yang Ming from his position as a supervisor due to retirement. His resignation will be effective upon the appointment of a new supervisor by the shareholders at an upcoming general meeting. The company expressed gratitude for Mr. Yang’s contributions during his tenure, and he confirmed no disagreements with the board.

Lepu Biopharma Gains Approval for Innovative Cancer Drug in China

Lepu Biopharma Co., Ltd. has received marketing approval in China for its innovative drug MEIYOUHENG (Becotatug Vedotin Injection), the first EGFR-targeted ADC approved for recurrent or metastatic nasopharyngeal cancer (R/M NPC). This approval marks a significant milestone, enhancing treatment options for patients and potentially expanding the drug’s commercial value. The drug has shown clinically meaningful efficacy and a manageable safety profile, with promising results in combination therapy trials, indicating a strong potential impact on the company’s market positioning and stakeholder interests.