CARsgen Therapeutics Holdings Ltd. (2171) AI Stock Analysis

• Market Cap: HK$9.19B
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: 1219.19%
• EPS Growth: 25.15%
• Country: HK
• Employees: 465
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.16
• Shares Outstanding: 578,117,000
• 10 Day Avg. Volume: 1,760,508
• 30 Day Avg. Volume: 1,977,652
• PEG Ratio: -0.80
• Price to Book (P/B): 4.53
• Price to Sales (P/S): 121.30
• P/FCF Ratio: -11.14
• 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$29.08
• Price Target Upside: 95.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$16.00 ▲(7.45% Upside)

The score is held back primarily by weak financial performance (large losses, significant cash burn, and declining equity) and bearish technical signals (below key moving averages with negative MACD). Valuation is neutral-to-weak because the negative P/E reflects ongoing unprofitability and there is no dividend support.

Positive Factors

In-house manufacturing

Owning research, process development and manufacturing for CAR‑T reduces dependency on external CDMOs, improves control of clinical/commercial supply chains, and supports long-term margin improvement and speed to market versus peers reliant on outsourced production.

Initial commercialization traction

Return of revenue in 2024 signals early commercialization or service income, indicating the business can monetize its platform. Durable significance: a revenue base enables learning, scaling, and eventual operating leverage if product uptake and payor pathways continue to develop.

Modest financial leverage

Low debt relative to equity reduces short-term solvency risk and preserves flexibility to raise funding or pursue partnerships. For a cash‑consuming biotech, modest leverage lowers default risk and gives management options to weather R&D cycles without immediate refinancing pressure.

Negative Factors

High cash burn

Sustained negative operating and free cash flow indicates ongoing reliance on external financing to fund R&D and operations. Over months this erodes runway, increases probability of dilutive equity raises or partnership payments, and constrains strategic choices until cash generation reverses.

Large losses and shrinking equity

Material net losses and a substantially reduced equity base reflect capital erosion over multiple years. This weakens the balance sheet cushion, raises dilution and financing risk, and limits the company’s ability to absorb clinical setbacks or finance scaling without onerous terms.

Cost base ahead of scale

Operating costs and R&D expenditures materially exceed current revenue, producing deeply negative margins. Structurally, the company needs meaningful revenue scale or sustained external funding to achieve profitability, making long-term viability sensitive to clinical and commercial execution.

CARsgen Therapeutics Holdings Ltd. Business Overview & Revenue Model

Company Description

CARsgen Therapeutics Holdings Limited, a biopharmaceutical company, engages in discovering, developing, and commercializing chimeric antigen receptor T (CAR-T) cell therapies for the treatment of hematological malignancies and solid tumors in China and the United States. The company is involved in developing CT053, an autologous CAR-T product candidate that is in pivotal Phase II trial for the treatment of relapsed/refractory multiple myeloma in China; CT041, an autologous CAR-T product candidate that is in Phase Ib/II clinical trial for advanced gastric/gastroesophageal junction cancer and pancreatic cancer in China, as well as in Phase Ib clinical trial for advanced gastric or pancreatic cancer in the United States; and CT011, an autologous CAR-T product candidate that is in Phase I clinical trial for patients with Glypican-3 positive advanced hepatocellular carcinoma. It is also developing CT032, an autologous CAR-T products candidate that is in Phase I/II clinical trial for the treatment of B cell Non-Hodgkin's lymphoma in China; AB011, a humanized monoclonal antibody product candidate that is in Phase I clinical trial for the treatment of CLDN18.2 positive solid tumors in China; and CT017, an autologous Glypican-3-targeted CAR-T product candidate for the treatment of hepatocellular carcinoma, as well as other product candidates for the treatment of solid tumors. The company was founded in 2014 and is headquartered in Shanghai, China.

How the Company Makes Money

CARsgen Therapeutics Holdings Ltd. generates revenue primarily through the development and commercialization of its CAR T-cell therapies. The company earns money by advancing its proprietary therapies through clinical trials and subsequently obtaining regulatory approvals to bring these treatments to market. Revenue streams include licensing agreements, where CARsgen partners with other pharmaceutical companies for the development and distribution of its therapies, and potential sales of approved therapies. Additionally, the company may receive milestone payments and royalties from collaborations and partnerships with other biotech and pharmaceutical firms. Key factors contributing to its earnings include successful clinical trial outcomes, regulatory approvals, and strategic alliances that enhance the company's market presence and distribution capabilities.

CARsgen Therapeutics Holdings Ltd. Financial Statement Overview

Summary

Revenue returned in 2024 (HK$39.4M), but the business remains dominated by very large losses (2024 net loss HK$798M) and heavy cash burn (2024 FCF -HK$429.3M). Debt is modest, yet equity has materially declined over 2022–2024, increasing dilution risk if cash outflows persist.

Income Statement

Revenue has re-appeared in 2024 (HK$39.4M) after being effectively absent in 2022–2023, which is a positive signal for commercialization progress. However, profitability remains very weak: 2024 net loss (HK$798M) and deeply negative operating profit indicate the cost base is far ahead of current scale, and margins are heavily negative. Overall, the trajectory shows early revenue traction but no meaningful earnings leverage yet.

Balance Sheet

Leverage looks modest on paper in 2024 with debt-to-equity around 0.16 and total debt of HK$166.4M, which reduces near-term balance-sheet risk versus highly levered peers. The key concern is shrinking equity over time (from ~HK$2.47B in 2022 to ~HK$1.06B in 2024), reflecting sustained losses and an eroding capital base; returns on equity are also strongly negative, highlighting ongoing value dilution if losses persist.

Cash Flow

Cash burn remains significant with 2024 operating cash flow of -HK$409.7M and free cash flow of -HK$429.3M, consistent with a business still funding R&D and operations well ahead of revenue. A modest improvement versus 2022–2023 burn is a constructive sign, but free cash flow is still materially negative, implying continued reliance on financing until losses narrow or revenue scales meaningfully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.45M	39.42M	0.00	0.00	25.81M	0.00
Gross Profit	27.16M	14.75M	-96.57M	-94.81M	25.81M	-45.07M
EBITDA	-407.46M	-686.61M	-717.64M	-748.73M	-4.67B	-316.40M
Net Income	-479.99M	-798.13M	-747.79M	-892.25M	-4.74B	-1.06B
Balance Sheet
Total Assets	1.51B	1.67B	2.26B	2.76B	3.51B	1.25B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.48B	1.85B	2.27B	3.01B	1.04B
Total Debt	140.85M	166.42M	85.22M	119.44M	338.05M	100.26M
Total Liabilities	551.26M	616.33M	455.51M	289.64M	508.98M	2.93B
Stockholders Equity	962.13M	1.06B	1.80B	2.47B	3.00B	-1.68B
Cash Flow
Free Cash Flow	-357.81M	-429.26M	-464.48M	-781.66M	-690.77M	-313.88M
Operating Cash Flow	-360.26M	-409.69M	-454.94M	-643.05M	-512.32M	-295.15M
Investing Cash Flow	-11.10M	12.52M	39.25M	2.39B	-2.47B	-6.90M
Financing Cash Flow	-36.27M	18.46M	-22.14M	-236.51M	2.67B	1.30B

CARsgen Therapeutics Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2171, the sentiment is Negative. The current price of 14.89 is below the 20-day moving average (MA) of 16.05, below the 50-day MA of 16.13, and below the 200-day MA of 18.95, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 45.02 is Neutral, neither overbought nor oversold. The STOCH value of 31.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2171.

CARsgen Therapeutics Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2315	70 Outperform	HK$18.65B	122.12	16.13%	―	48.38%	―
6826	64 Neutral	HK$11.00B	14.47	6.69%	4.28%	-8.49%	-9.46%
1672	54 Neutral	HK$13.14B	-47.65	-12.74%	―	-76.58%	-4.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1952	45 Neutral	HK$14.32B	-18.15	-15.75%	―	102.73%	38.42%
2171	44 Neutral	HK$9.19B	-15.58	-42.46%	―	1219.19%	25.15%
2157	40 Underperform	HK$9.20B	-43.25	-21.42%	―	240.05%	-140.09%

CARsgen Therapeutics Holdings Ltd. Corporate Events

CARsgen Extends Share Buyback Plan as Major Shareholder Raises Stake

CARsgen Therapeutics has extended the term of its existing share repurchase plan to run until the conclusion of its next annual general meeting, after having already bought back 7,627,000 shares under its 2025 repurchase mandate. Funded by non-IPO sources such as business development and interest income, the move is framed by the board as a signal that the company’s share price undervalues its long-term growth prospects and as a measure to enhance shareholder value. Separately, substantial shareholder YIJIE Biotech Holding Limited and its concert parties have increased their stake to about 38.2% of issued shares (excluding treasury shares), a development the board interprets as further market confidence in CARsgen’s long-term investment appeal, albeit with the caveat that future buybacks remain discretionary and subject to market conditions.

The most recent analyst rating on (HK:2171) stock is a Sell with a HK$14.92 price target. To see the full list of analyst forecasts on CARsgen Therapeutics Holdings Ltd. stock, see the HK:2171 Stock Forecast page.

CARsgen Therapeutics Presents Promising Results for CT0596 at ASH Congress

CARsgen Therapeutics Holdings Ltd. has announced the preliminary results of its BCMA-targeting allogeneic CAR T-cell product candidate, CT0596, at the 67th Annual Congress of the American Society of Hematology. The results, presented as a poster, indicate favorable tolerability and encouraging efficacy signals in patients with relapsed/refractory multiple myeloma. The company plans further investigations into additional plasma cell malignancies and autoimmune diseases, with an IND application anticipated in the second half of 2025. This development highlights CARsgen’s ongoing efforts to enhance its industry positioning by expanding its product pipeline and addressing challenges in existing CAR T-cell therapies.

The most recent analyst rating on (HK:2171) stock is a Sell with a HK$14.92 price target. To see the full list of analyst forecasts on CARsgen Therapeutics Holdings Ltd. stock, see the HK:2171 Stock Forecast page.

CARsgen Therapeutics Updates Share Repurchase Plan and Sees Increased Stake from Key Shareholder

CARsgen Therapeutics Holdings Limited has announced an update to its share repurchase plan, allowing the company to buy back up to 25,461,295 shares in the open market over the next 50 trading days. This move, funded by non-IPO raised funds, reflects the board’s belief that the current share price undervalues the company’s business prospects and demonstrates confidence in its long-term growth. Additionally, YIJIE Biotech Holding Limited, a substantial shareholder, has increased its stake in the company, indicating strong confidence in CARsgen’s potential for growth and investment value.

The most recent analyst rating on (HK:2171) stock is a Sell with a HK$14.92 price target. To see the full list of analyst forecasts on CARsgen Therapeutics Holdings Ltd. stock, see the HK:2171 Stock Forecast page.