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CStone Pharmaceuticals
(2616)
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Rating:41Neutral
Price Target:
HK$4.00
▼(-25.09% Downside)
Action:Reiterated
Date:06/02/26
The score is held down primarily by weak financial quality: sharply deteriorating margins, widening losses, and persistent cash burn despite the 2025 revenue rebound. Technicals add further pressure with the stock trading well below major moving averages and negative MACD. Valuation is only slightly supportive because the negative P/E reflects ongoing unprofitability and there is no dividend yield to offset risk.
Positive Factors
2025 revenue rebound (+47.7% YoY)
A 47.7% revenue rebound in 2025 signals improving commercial traction and patient uptake. If sustained, higher recurring sales can scale gross revenue, fund ongoing R&D and commercialization, and provide a firmer runway to address profitability and reduce reliance on external financing over the medium term.
Negative Factors
Sharp margin deterioration and volatility
Gross margin collapsing to ~17% and net margin widening to ~-162% indicate severe margin pressure and volatility. This undermines the quality of the revenue rebound since weak margins limit the firm’s ability to convert sales into sustainable profits and raise the execution bar for cost and pricing fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
2025 revenue rebound (+47.7% YoY)
A 47.7% revenue rebound in 2025 signals improving commercial traction and patient uptake. If sustained, higher recurring sales can scale gross revenue, fund ongoing R&D and commercialization, and provide a firmer runway to address profitability and reduce reliance on external financing over the medium term.
Read all positive factors
CStone Pharmaceuticals (2616) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$7.43B
Dividend YieldN/A
Average Volume (3M)19.75M
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth-33.37%
EPS Growth-344.90%
CountryHK
Employees135
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.21
Shares Outstanding1,600,749,100
10 Day Avg. Volume13,736,900
30 Day Avg. Volume19,747,038
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)10.65
Price to Sales (P/S)24.38
P/FCF Ratio-20.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)HK$461.53M
CStone Pharmaceuticals Business Overview & Revenue Model
Company Description
CStone Pharmaceuticals is a biopharmaceutical company dedicated to the discovery, development, and commercialization of advanced immuno-oncology and precision medicines. Its mission is to address critical unmet medical needs for cancer patients, b...
How the Company Makes Money
CStone Pharmaceuticals makes money primarily through (1) product sales of its commercialized medicines in markets where it holds commercialization rights, generating revenue from hospital and pharmacy channels (exact channel mix not available: nul...
CStone Pharmaceuticals Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
46
Neutral
Cash Flow
24
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 269.58M | 407.20M | 463.84M | 481.36M | 243.72M |
| Gross Profit | 51.25M | 240.15M | 304.30M | 278.38M | 136.89M |
| EBITDA | -403.85M | -76.43M | -297.23M | -849.66M | -1.90B |
| Net Income | -437.00M | -91.21M | -367.23M | -902.68M | -1.92B |
Balance Sheet | |||||
| Total Assets | 1.36B | 1.39B | 1.66B | 1.64B | 2.27B |
| Cash, Cash Equivalents and Short-Term Investments | 919.09M | 672.94M | 1.05B | 1.04B | 1.73B |
| Total Debt | 348.67M | 355.97M | 363.45M | 286.29M | 174.20M |
| Total Liabilities | 741.60M | 1.03B | 1.21B | 1.19B | 1.06B |
| Stockholders Equity | 617.03M | 363.87M | 456.83M | 449.33M | 1.21B |
Cash Flow | |||||
| Free Cash Flow | -327.75M | -343.18M | -653.89M | -714.29M | -1.63B |
| Operating Cash Flow | -327.75M | -343.18M | -588.84M | -612.47M | -1.48B |
| Investing Cash Flow | 133.99M | -247.68M | 619.61M | 365.12M | -826.55M |
| Financing Cash Flow | 577.78M | -12.90M | 388.36M | 28.47M | 92.30M |
CStone Pharmaceuticals Technical Analysis
Negative
5.34
Price Trends
7.26
Negative
7.04
Negative
6.97
Negative
Market Momentum
-0.73
Negative
29.80
Positive
36.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2616, the sentiment is Negative. The current price of 5.34 is above the 20-day moving average (MA) of 4.87, below the 50-day MA of 7.26, and below the 200-day MA of 6.97, indicating a bearish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 29.80 is Positive, neither overbought nor oversold. The STOCH value of 36.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2616.
CStone Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | HK$17.73B | 25.61 | 10.12% | ― | 110.05% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | HK$16.42B | -11.22 | -24.29% | ― | 8.50% | 35.24% | |
46 Neutral | HK$6.77B | -55.90 | -6.26% | ― | -11.65% | -169.40% | |
44 Neutral | HK$8.59B | -68.31 | -11.21% | ― | 219.26% | 87.63% | |
44 Neutral | HK$12.30B | -8.30 | -123.74% | ― | -41.32% | -159.81% | |
41 Neutral | HK$7.43B | -19.39 | -64.78% | ― | -33.37% | -344.90% |
* Healthcare Sector Average
HK:2616
CStone Pharmaceuticals
4.71
0.52
12.41%
HK:9688
Zai Lab Ltd
14.46
-12.99
-47.32%
HK:9966
Alphamab Oncology
6.95
0.85
13.93%
HK:9969
InnoCare Pharma Ltd.
11.86
-1.24
-9.47%
HK:2171
CARsgen Therapeutics Holdings Ltd.
14.26
-8.84
-38.27%
HK:6855
Ascentage Pharma Group International
33.20
-44.90
-57.49%
CStone Pharmaceuticals Corporate Events
CStone Strikes Oceania Deal with Arrotex for Cancer Drug Sugemalimab
Jun 25, 2026
CStone Pharmaceuticals has signed an exclusive commercialization agreement with Arrotex Pharmaceuticals to bring its anti-PD-L1 antibody sugemalimab to Australia and New Zealand. Arrotex, part of DBG Health, will handle regulatory submissions and ...
CStone Shareholders Approve All AGM Resolutions, Renew Capital Mandates and CEO Equity Awards
Jun 23, 2026
CStone Pharmaceuticals reported that all resolutions at its 23 June annual general meeting were approved by shareholders, including the adoption of 2025 financial statements and the re-election of its full slate of executive, non-executive and ind...
CStone Seeks Independent Shareholder Approval for CEO Equity Awards
Jun 16, 2026
CStone Pharmaceuticals has issued a supplemental announcement detailing proposed grants of 7,000,000 share options and 4,270,000 restricted share units to its executive director and chief executive officer, Dr. Frank Ningjun Yang, under its post-I...
CStone Launches Global Phase I Trial for New EGFR/HER3 Bispecific ADC
Jun 11, 2026
CStone Pharmaceuticals has initiated global clinical development of CS5007, an EGFR/HER3 bispecific antibody-drug conjugate, after receiving ethics approval for a multicenter Phase I trial from Australia’s Human Research Ethics Committee. Th...
CStone Executives Launch Joint Share Purchase Plan to Signal Confidence in Pipeline
Jun 3, 2026
CStone Pharmaceuticals’ leadership has launched a joint share purchase plan in which the CEO, board directors and senior management will buy between 2 million and 5 million company shares on the open market using personal funds from June 202...
CStone Sets 2026 AGM to Renew Board, Auditor and Share Issuance Mandate
Jun 1, 2026
CStone Pharmaceuticals, a Hong Kong–listed biopharmaceutical company incorporated in the Cayman Islands, develops and markets oncology drugs with a primary focus on the Chinese market. Its governance framework combines executive, non-executi...
CStone’s CS2009 Posts Strong ASCO Data as Company Prepares Global Phase III Trial
Jun 1, 2026
CStone Pharmaceuticals reported new clinical data for its core asset CS2009, a trispecific antibody targeting PD-1, VEGF and CTLA-4, presented at the ASCO Annual Meeting. The drug showed strong efficacy signals in first-line non-small cell lung ca...
CStone Pharmaceuticals Unveils Share Buyback Plan After Key Oncology Data Milestone
May 13, 2026
CStone Pharmaceuticals plans to repurchase up to 136,450,133 of its own shares on the open market under an existing and future shareholder-approved repurchase mandate, subject to Hong Kong listing rules and blackout periods. The buyback will comme...
CStone Launches Nationwide Supply of Locally Made Pralsetinib as China Sales Surge
May 11, 2026
CStone Pharmaceuticals has begun nationwide commercial supply of its first domestically manufactured batch of 100 mg pralsetinib capsules in China, marking a key step in localizing the supply chain for this targeted cancer therapy. The company emp...
CStone Pharmaceuticals Raises Over HK$1 Billion in Completed Share Placement
Apr 22, 2026
CStone Pharmaceuticals has completed a new share placement under its general mandate, issuing 118 million shares at HK$8.97 each to at least six institutional and professional investors, raising net proceeds of about HK$1.05 billion. The new share...
CStone to Showcase Promising CS2009 Cancer Data Ahead of Global Phase III Push
Apr 22, 2026
CStone Pharmaceuticals said it will present updated clinical data for its internally developed trispecific antibody CS2009 at the ASCO 2026 Annual Meeting, highlighting progress from a global Phase I/II program in non-small cell lung cancer and ad...
CStone Showcases Three Novel ADC Candidates, Highlighting EGFR/HER3 Bispecific CS5007
Apr 20, 2026
CStone Pharmaceuticals has presented new preclinical data on three proprietary antibody-drug conjugates at the 2026 American Association for Cancer Research meeting, underscoring its push into next-generation oncology therapies. The candidates, CS...
CStone Pharmaceuticals to Raise About HK$1.05 Billion via Discounted Share Placement
Apr 14, 2026
CStone Pharmaceuticals has entered into a placing agreement to issue 118 million new shares at HK$8.97 each, a discount of about 6.95% to the last closing price and 7.85% to the five-day average. The new shares will represent roughly 7.40% of the ...
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.
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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.