Sirnaomics Ltd. (2257) AI Stock Analysis

• Market Cap: HK$872.78M
• Dividend Yield: N/A
• Average Volume (3M): 442.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: N/A
• EPS Growth: 83.89%
• Country: HK
• Employees: 69
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.31
• Shares Outstanding: 107,221,535
• 10 Day Avg. Volume: 408,789
• 30 Day Avg. Volume: 442,620
• PEG Ratio: 0.02
• Price to Book (P/B): -20.53
• Price to Sales (P/S): 19.40
• P/FCF Ratio: -1.74
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$8.00 ▼(-11.80% Downside)

The overall stock score of 46 reflects significant financial challenges, including persistent losses and a weak balance sheet. Technical analysis shows mixed signals with some short-term recovery potential, but overall bearish momentum. Valuation is negatively impacted by ongoing losses and lack of dividend yield.

Positive Factors

Innovative Product Pipeline

The focus on RNAi therapeutics positions Sirnaomics at the forefront of innovative treatments, potentially capturing significant market share in emerging therapies.

Strategic Collaborations

Collaborations provide access to additional resources and expertise, enhancing R&D capabilities and accelerating the development of new therapeutics.

Revenue Model Diversification

A diversified revenue model reduces dependency on a single income stream, providing financial resilience and supporting long-term growth.

Negative Factors

Persistent Operating Losses

Ongoing losses indicate difficulty in achieving profitability, which could hinder long-term sustainability and require additional financing.

Weak Balance Sheet

A weak balance sheet with negative equity poses a risk to financial stability, potentially limiting growth opportunities and increasing vulnerability to economic downturns.

High Cash Burn

High cash burn can strain resources, necessitating frequent capital raises, which may dilute existing shareholders and impact long-term financial health.

Sirnaomics Ltd. Business Overview & Revenue Model

Company Description

Sirnaomics Ltd. (2257) is a biopharmaceutical company specializing in the development of innovative RNAi (RNA interference) therapeutics aimed at treating various diseases, including cancer and viral infections. The company's proprietary platform focuses on the design and optimization of small interfering RNA (siRNA) molecules, which can selectively silence disease-causing genes. Sirnaomics operates primarily in the biotechnology sector and is committed to advancing its product pipeline through rigorous research and development, as well as strategic collaborations with academic institutions and pharmaceutical companies.

How the Company Makes Money

Sirnaomics generates revenue primarily through a combination of product sales, research grants, and collaborations with other pharmaceutical companies. The company's revenue model is driven by the successful development and commercialization of its RNAi therapeutics, which may include upfront payments, milestone payments, and royalties from licensing agreements. Additionally, Sirnaomics may receive funding from government and private research grants that support its innovative research initiatives. Strategic partnerships with larger pharmaceutical firms can also provide significant financial backing and resources, enabling Sirnaomics to accelerate its drug development processes and expand its market presence.

Sirnaomics Ltd. Financial Statement Overview

Summary

Sirnaomics Ltd. faces significant financial challenges with persistent operating losses and a weak balance sheet characterized by negative equity. Despite some revenue growth and improvements in free cash flow, the company remains unprofitable with high cash burn, raising concerns about its ability to sustain operations without further financing.

Income Statement

The company's income statement reveals ongoing challenges in profitability and revenue growth. Despite an increase in revenue from the previous year, the net profit margin remains deeply negative at -289.0% for 2024, indicating significant losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Although the gross profit margin is positive at 67.4%, it is insufficient to offset the high operating expenses.

Balance Sheet

The balance sheet indicates a precarious financial position with negative stockholders' equity, signaling insolvency risk. The debt-to-equity ratio is not meaningful due to negative equity, but the company has managed to maintain a relatively low total debt level. The equity ratio is negative, reflecting a higher liability level than assets, which poses a financial stability risk.

Cash Flow

The cash flow statement shows a significant negative free cash flow, indicating cash burn exceeding income. The operating cash flow to net income ratio is negative, highlighting cash outflows in operations. However, there is a noticeable improvement in free cash flow, which grew positively from 2023 to 2024, suggesting some progress towards better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	949.00K	1.78M	397.00K	705.00K	0.00	0.00
Gross Profit	370.00K	1.20M	397.00K	705.00K	-12.67M	0.00
EBITDA	-15.48M	-31.12M	-72.36M	-89.02M	-1.66B	-19.27M
Net Income	-14.02M	-51.38M	-78.69M	-88.30M	-1.66B	-43.77M
Balance Sheet
Total Assets	21.30M	28.33M	75.79M	163.93M	240.65M	110.18M
Cash, Cash Equivalents and Short-Term Investments	6.87M	11.77M	43.93M	105.23M	211.99M	103.12M
Total Debt	7.21M	8.06M	8.85M	10.76M	7.04M	91.87M
Total Liabilities	40.40M	44.33M	51.33M	52.37M	30.36M	204.36M
Stockholders Equity	-5.12M	-1.68M	40.20M	122.01M	211.62M	-94.43M
Cash Flow
Free Cash Flow	-9.26M	-19.84M	-72.03M	-107.54M	-62.85M	-21.15M
Operating Cash Flow	-9.26M	-19.73M	-70.29M	-88.71M	-56.97M	-19.00M
Investing Cash Flow	1.94M	2.14M	-5.35M	-32.61M	-6.04M	8.39M
Financing Cash Flow	6.53M	5.82M	-5.61M	15.89M	170.96M	100.37M

Sirnaomics Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2257, the sentiment is Neutral. The current price of 9.07 is above the 20-day moving average (MA) of 7.95, below the 50-day MA of 9.70, and above the 200-day MA of 7.42, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 77.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2257.

Sirnaomics Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1875	58 Neutral	HK$1.50B	189.52	0.99%	―	9.41%	-32.69%
2197	52 Neutral	HK$3.31B	-3.19	―	―	79.98%	-3.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2257	46 Neutral	HK$872.78M	-6.37	―	―	―	83.89%
3681	45 Neutral	HK$2.05B	-10.23	-55.33%	―	-100.00%	30.68%
2616	42 Neutral	HK$8.12B	-18.03	-95.84%	―	-55.64%	-158.67%
6628	41 Neutral	HK$990.69M	-3.11	-34.18%	―	-57.84%	24.58%

Sirnaomics Ltd. Corporate Events

Sirnaomics Ltd. Completes Partial Share Subscription to Boost Drug Development

Sirnaomics Ltd. announced the partial completion of a subscription agreement, resulting in the issuance of 1,003,700 new shares to Subscriber B at HK$12.00 per share. The termination of the remaining shares in the agreement was mutually agreed upon, with no adverse impact on the company’s operations or financial conditions. The net proceeds of approximately HK$12.0 million will be used for the development and commercialization of their drug candidates, enhancing the company’s strategic focus on advancing its RNAi therapeutics portfolio.

Sirnaomics Ltd. Announces Board of Directors and Committee Roles

Sirnaomics Ltd. has announced the composition of its board of directors, detailing the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders and investors to understand the leadership dynamics and decision-making processes within the organization.

Sirnaomics Ltd. Successfully Implements Remedial Actions for Internal Control

Sirnaomics Ltd. has announced the completion of its remedial actions to address internal control weaknesses and deficiencies, as identified in a recent internal control review. The company engaged PAL Advisory Limited to assess the effectiveness of these actions, particularly focusing on business communication standards. The review confirmed that the company’s measures, including mandatory training and policy updates, have adequately addressed the issues, thereby enhancing data security and compliance within the organization.

Sirnaomics Ltd. Allocates HK$206 Million for RNA Therapeutics Development

Sirnaomics Ltd. has announced a supplemental update on the allocation of net proceeds from its recent share subscription, amounting to approximately HK$206.0 million. The funds will primarily be used to advance the development and commercialization of its key drug candidates, including STP705 and STP122G, with a strategic focus on completing clinical trials by the end of 2027. This financial move is expected to bolster the company’s position in the biotech industry and support its ongoing efforts to enrich its product pipeline, ultimately benefiting shareholders.

Sirnaomics Ltd. Announces New Share Subscription to Boost Financial Standing

Sirnaomics Ltd. announced the subscription of 17,352,421 new shares under a general mandate, priced at HK$12.00 per share. This move, which does not require shareholder approval, represents approximately 16.50% of the company’s existing issued share capital and aims to enhance the company’s financial position, potentially impacting its market presence and stakeholder interests.