Transcenta Holding Limited (6628) AI Stock Analysis

• Market Cap: HK$1.62B
• Dividend Yield: N/A
• Average Volume (3M): 5.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -79.65%
• EPS Growth: 37.50%
• Country: HK
• Employees: 184
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 437,413,940
• 10 Day Avg. Volume: 4,103,095
• 30 Day Avg. Volume: 5,399,087
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$3.00
• Price Target Upside: -13.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: HK$3.00 ▼(-13.29% Downside)

The stock score is primarily influenced by significant financial challenges, including negative margins and cash flow struggles. Despite positive technical analysis indicating short-term momentum, the negative valuation metrics reflect financial instability. Investors should be cautious, considering the need for financial restructuring and the absence of a dividend yield.

Transcenta Holding Limited Business Overview & Revenue Model

Company Description

Transcenta Holding Limited, a clinical stage biopharmaceutical company, engages in the discovery, research, development, manufacture, and commercialization of various drugs in the People's Republic of China and the United States. The company develops MSB2311, a humanized PD-L1 monoclonal antibody (mAb) candidate for TMB-H solid tumors; TST001, a humanized claudin 18.2 mAb candidate for solid tumors, such as gastric cancer and is under Phase II clinical trial; TST005, a PD-L1/TGF-ß bi-functional antibody candidate which is under Phase Ia clinical trial for solid tumors, including certain lung cancers; TST010, an antibody candidate targeting regulatory T cells to enhance T cell mediated tumor killing;TST002 (Blosozumab), a humanized sclerostin mAb candidate for osteoporosis; and TST004, a humanized mannan-binding lectin serine protease 2 (MASP 2) mAb candidate for IgA kidney diseases. It also develops TST003, an antibody candidate targeting a novel immune regulatory protein produced by tumor-associated fibroblasts or tumor cells with mesenchymal phenotype; TST006, a bi-specific claudin 18.2/PD-L1 antibody; TST008, a tri-functional antibody combining a MASP2 antibody fused with a truncated transmembrane activator and CAML interactor protein; MSB0254, a humanized VEGFR-2 mAb candidate for solid tumors and is under Phase Ib/IIa clinical trials; and MSB2311, A humanized PD-L1 mAb Candidate for solid tumors and is under Phase Ib/IIa clinical trials Transcenta Holding Limited has collaboration agreements with Eli Lilly and Company, Alebund Pharmaceuticals, and Merck. The company was formerly known as MabSpace International Limited and changed its name to Transcenta Holding Limited in June 2019. Transcenta Holding Limited was incorporated in 2010 and is headquartered in Suzhou, the People's Republic of China.

How the Company Makes Money

Transcenta makes money through the development and commercialization of its biologic drug candidates. The company's revenue model is primarily based on partnerships and collaborations with other pharmaceutical companies, where they may receive milestone payments, royalties, and licensing fees for the rights to develop and market their drug candidates. Additionally, Transcenta invests in manufacturing capabilities to support its pipeline, which can also generate revenue through contract manufacturing services offered to other biotech companies. Significant partnerships with global pharmaceutical firms enhance Transcenta's capabilities in research and development, providing a steady flow of income through strategic collaborations.

Transcenta Holding Limited Financial Statement Overview

Summary

Transcenta Holding Limited faces significant financial challenges with negative profit margins and declining revenues. The balance sheet shows moderate health but high leverage, and cash flow analysis reveals severe distress with negative free cash flows. Overall, financial performance is weak with a need for strategic restructuring.

Income Statement

The income statement reveals significant challenges for Transcenta Holding Limited. The company has experienced a declining revenue trend, with a notable drop from 2022 to 2023. Gross profit margin has decreased significantly, indicating rising costs or pricing pressures. Net profit margins are negative due to substantial net losses, reflecting ongoing financial struggles. Both EBIT and EBITDA margins are deeply negative, underscoring poor operational performance.

Balance Sheet

The balance sheet shows moderate financial health with some areas of concern. The debt-to-equity ratio is relatively high, indicating significant leverage. However, the equity ratio is positive, suggesting a stable asset base. Return on equity is negative due to net losses. Overall, the balance sheet reflects potential risk from high debt levels but also indicates some strength in asset management.

Cash Flow

Cash flow analysis indicates severe financial distress. The company reports zero or negative free cash flows across recent periods, highlighting a lack of cash generation capability. The operating cash flow to net income ratio is unfavorable, and free cash flow growth rate is negative, illustrating ongoing cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.26M	53.85M	101.89M	50.24M	80.98M
Gross Profit	4.00M	14.40M	19.89M	9.37M	18.20M
EBITDA	-233.12M	-393.01M	-334.09M	-1.65B	-264.81M
Net Income	-290.29M	-462.57M	-406.75M	-1.72B	-322.90M
Balance Sheet
Total Assets	1.20B	1.69B	2.13B	2.54B	2.09B
Cash, Cash Equivalents and Short-Term Investments	169.42M	546.03M	895.45M	1.22B	813.59M
Total Debt	250.61M	409.63M	411.46M	364.71M	254.30M
Total Liabilities	448.64M	665.67M	660.64M	579.39M	2.91B
Stockholders Equity	751.64M	1.03B	1.47B	1.97B	-816.25M
Cash Flow
Free Cash Flow	-216.15M	-373.80M	-318.03M	-457.84M	-237.73M
Operating Cash Flow	-213.83M	-358.04M	-295.81M	-384.50M	-174.40M
Investing Cash Flow	14.28M	57.47M	-102.61M	-69.77M	-57.74M
Financing Cash Flow	-178.06M	-47.20M	26.72M	879.71M	620.17M

Transcenta Holding Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6628, the sentiment is Neutral. The current price of 3.46 is below the 20-day moving average (MA) of 3.53, above the 50-day MA of 2.58, and above the 200-day MA of 1.45, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 37.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6628.

Transcenta Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1875	71 Outperform	HK$1.68B	211.43	0.99%	―	9.41%	-32.69%
2257	57 Neutral	HK$1.05B	―	-266.90%	―	―	31.23%
3681	55 Neutral	HK$3.63B	―	-75.64%	―	42.21%	29.52%
6628	53 Neutral	HK$1.62B	―	-32.59%	―	-79.65%	37.50%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
2197	51 Neutral	HK$1.19B	―		―	-1.73%	-689.53%
9939	36 Underperform	HK$1.06B	―	-41.20%	―	―	85.29%

Transcenta Holding Limited Corporate Events

Transcenta Implements Strategic Measures to Enhance Financial Stability and Pipeline Development

Transcenta Holding Limited has announced a series of strategic measures to address a disclaimer of opinion in its 2024 annual report, focusing on improving its financial position and liquidity. The company is actively engaging in global partnerships, licensing, and fundraising activities to support its major pipeline assets and other development projects. These efforts include negotiating with banks for credit facilities, collaborating with suppliers for culture media, and exploring technology licensing opportunities. These initiatives are aimed at securing funding and strategic collaborations to advance the company’s innovative therapeutics development and operational stability.

Transcenta Clarifies Option Grant to Consultant Dr. Caroline Germa

Transcenta Holding Limited announced a clarification and supplemental information regarding the grant of 2,000,000 options to Dr. Caroline Germa under its Share Incentive Scheme. Dr. Germa, a consultant and former executive of the company, plays a crucial role in advising on clinical development and other strategic areas. The option grant aims to incentivize her continued engagement and align her interests with the company’s goals. The vesting of these options is based on performance targets related to clinical and business development milestones, reflecting the company’s strategic objectives.

Transcenta Grants Shares and Options to Key Employees

Transcenta Holding Limited announced the granting of 90,000 Award Shares and 2,000,000 Options under its Share Incentive Scheme on June 25, 2025. The awards are aimed at incentivizing and retaining key employees, including Dr. Xu, Mr. Tang, and Mr. Zhang, to support the company’s ongoing operations and long-term growth. The shares will vest over three years, with no performance targets attached, reflecting the company’s strategy to reward and retain talent crucial for its development.

Transcenta Holding Limited Announces Successful AGM Outcomes

Transcenta Holding Limited announced the successful outcomes of its Annual General Meeting held on June 6, 2025, where all proposed resolutions were approved by shareholders. Key resolutions included the re-election of directors, the re-appointment of Deloitte Touche Tohmatsu as auditors, and the authorization for the board to manage share buybacks and issuances. This reflects strong shareholder support and positions the company for continued strategic growth.

Transcenta Unveils Promising Osemitamab Trial Results at ASCO 2025

Transcenta Holding Limited announced promising new data from its Phase II trial of Osemitamab (TST001) for advanced gastric or gastroesophageal junction cancer, presented at the 2025 ASCO Annual Meeting. The trial results indicate significant survival benefits, with a median overall survival of 20.4 months for all patients and 21.7 months for those with higher CLDN18.2 expression. These findings strengthen the company’s commitment to advancing this treatment, potentially improving patient outcomes and enhancing its position in the oncology market.

Transcenta Holding Limited Schedules 2025 Annual General Meeting

Transcenta Holding Limited has announced its upcoming Annual General Meeting to be held on June 6, 2025, in Suzhou, China. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for 2024, re-election of directors, and re-appointment of Deloitte Touche Tohmatsu as the company’s auditor. Additionally, the meeting will consider granting the board of directors mandates to buy back shares and to issue additional shares, which could impact the company’s market activities and shareholder value.