Transcenta Holding Limited (6628) AI Stock Analysis

• Market Cap: HK$1.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -57.84%
• EPS Growth: 24.58%
• Country: HK
• Employees: 184
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 452,409,000
• 10 Day Avg. Volume: 1,161,500
• 30 Day Avg. Volume: 1,285,964
• PEG Ratio: 0.02
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 21.27
• P/FCF Ratio: -1.11
• 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: 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: 41 Neutral
• Price Target: HK$2.50 ▼(-4.58% Downside)

The overall stock score reflects significant financial and valuation challenges. The company's financial performance is weak, with declining revenue and persistent losses. Technical analysis indicates bearish momentum, and the valuation metrics highlight substantial risks due to unprofitability. These factors collectively suggest a cautious outlook for the stock.

Positive Factors

Strategic Partnerships

Strategic partnerships provide additional resources for product development, enhancing financial stability and supporting long-term growth.

Innovative Product Pipeline

A strong focus on innovative biologics for cancer and autoimmune diseases positions the company well in the biotechnology sector, supporting long-term growth.

Moderate Leverage

Moderate leverage provides financial flexibility, allowing the company to invest in growth opportunities without excessive debt burden.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or product competitiveness, impacting long-term financial health and growth potential.

Cash Flow Challenges

Negative cash flows indicate operational inefficiencies and financial strain, potentially limiting the company's ability to invest in growth and innovation.

Negative Profitability Metrics

Negative profitability metrics reflect operational inefficiencies and financial instability, posing risks to sustainable growth and investor confidence.

Transcenta Holding Limited Business Overview & Revenue Model

Company Description

Transcenta Holding Limited (6628) is a biopharmaceutical company focused on the discovery, development, and commercialization of innovative biologics for the treatment of cancer and autoimmune diseases. The company operates in the biotechnology sector and specializes in monoclonal antibodies and other biological therapeutics. Its core products include its proprietary drug candidates that target specific pathways involved in disease progression, aiming to provide effective and tailored treatment options for patients.

How the Company Makes Money

Transcenta generates revenue primarily through the development and commercialization of its biopharmaceutical products. Key revenue streams include sales from approved drugs, licensing agreements with other pharmaceutical companies, and collaborations for research and development initiatives. The company may also earn revenue through milestone payments and royalties associated with its partnered products. Significant partnerships with larger pharmaceutical firms can enhance its financial stability and provide additional resources for product development, thus contributing to its overall earnings.

Transcenta Holding Limited Financial Statement Overview

Summary

Transcenta Holding Limited faces significant financial challenges across all verticals. The income statement shows declining revenue and persistent losses, while the balance sheet reflects moderate leverage but poor returns on equity. Cash flow issues are evident, with negative growth and cash burn. Overall, the company needs to address its operational inefficiencies and improve its financial health to achieve sustainable growth.

Income Statement

The income statement reveals significant challenges, with negative growth and profitability metrics. The TTM data shows a decline in revenue by 8.97%, and the net profit margin is deeply negative at -25.78%. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Despite a consistent gross profit margin around 35.5%, the overall financial health is weak due to substantial losses.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.33, which is relatively stable. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is not explicitly provided, but the overall financial position suggests a need for improved profitability and asset management.

Cash Flow

Cash flow analysis highlights ongoing cash burn, with negative operating and free cash flows. The free cash flow growth rate is negative at -10.48% in the TTM period, and the operating cash flow to net income ratio is also negative, reflecting cash flow challenges. The free cash flow to net income ratio is slightly above 1, indicating that cash outflows are closely aligned with net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.41M	11.26M	53.85M	101.89M	50.24M	80.98M
Gross Profit	3.27M	4.00M	14.40M	19.89M	9.37M	18.20M
EBITDA	-211.90M	-233.12M	-393.01M	-334.09M	-1.65B	-264.81M
Net Income	-266.36M	-290.29M	-462.57M	-406.75M	-1.72B	-316.63M
Balance Sheet
Total Assets	1.04B	1.20B	1.69B	2.13B	2.54B	2.09B
Cash, Cash Equivalents and Short-Term Investments	45.81M	169.42M	546.03M	895.45M	1.22B	813.59M
Total Debt	210.14M	250.61M	409.63M	411.46M	364.71M	254.30M
Total Liabilities	386.57M	448.64M	665.67M	660.64M	579.39M	2.91B
Stockholders Equity	652.13M	751.64M	1.03B	1.47B	1.97B	-816.25M
Cash Flow
Free Cash Flow	-175.14M	-216.15M	-373.80M	-318.03M	-457.84M	-237.73M
Operating Cash Flow	-170.07M	-213.83M	-358.04M	-295.81M	-384.50M	-174.40M
Investing Cash Flow	8.23M	14.28M	57.47M	-102.61M	-69.77M	-57.74M
Financing Cash Flow	-157.75M	-178.06M	-47.20M	26.72M	879.71M	620.17M

Transcenta Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.62
• 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:6628, the sentiment is Negative. The current price of 2.62 is below the 20-day moving average (MA) of 2.68, below the 50-day MA of 3.12, and above the 200-day MA of 2.52, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 25.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	58 Neutral	HK$1.54B	189.52	0.99%	―	9.41%	-32.69%
2197	52 Neutral	HK$3.48B	-3.34	―	―	79.98%	-3.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2257	46 Neutral	HK$972.50M	-7.16	―	―	―	83.89%
3681	45 Neutral	HK$2.06B	-10.44	-55.33%	―	-100.00%	30.68%
6628	41 Neutral	HK$1.16B	-3.70	-34.18%	―	-57.84%	24.58%
9939	36 Underperform	HK$973.07M	-4.77	-54.87%	―	―	81.67%

Transcenta Holding Limited Corporate Events

Transcenta’s Osemitamab Shows Promising Results in Cancer Trial

Transcenta Holding Limited announced promising updated efficacy data from its phase I/II Transtar102 trial involving osemitamab combined with nivolumab and CAPOX for first-line treatment of gastric/gastroesophageal junction cancer. The trial results, presented at the ESMO Asia Congress 2025, showed significant clinical benefits, including a median progression-free survival of 16.6 months and an overall response rate of 68% in patients with higher CLDN18.2 expression. These findings reinforce the potential of osemitamab as a meaningful treatment option, demonstrating consistent benefits across different PD-L1 subgroups and a favorable safety profile.

Transcenta Announces Share and Option Grants to Boost Strategic Goals

Transcenta Holding Limited announced the grant of 200,000 Award Shares and 800,000 Options under its Share Incentive Scheme. The shares are granted to service providers based on performance targets related to fundraising and partnership milestones, with a clawback mechanism in place for certain circumstances. This initiative aims to align the interests of the grantees with the company’s strategic goals, potentially impacting its operational efficiency and market positioning.

Transcenta Holding Limited Announces Auditor Change to Ernst & Young

Transcenta Holding Limited has announced a change in its auditor, with Deloitte Touche Tohmatsu resigning due to a disagreement over audit fees for the financial year ending December 31, 2025. The company has appointed Ernst & Young as the new auditor, citing a more competitive proposal that aligns with its cost-control objectives. The transition is not expected to impact the company’s annual audit or financial results release, and the Board expresses gratitude to Deloitte for its past services.

Transcenta’s Partner Inhibrx Reports Positive Phase 2 Results for Ozekibart in Chondrosarcoma

Transcenta Holding Limited announced that its partner, Inhibrx Biosciences, has reported positive Phase 2 results for ozekibart in treating chondrosarcoma, a cancer with no approved systemic options. The promising results from the ChonDRAgon study highlight ozekibart’s potential as a significant treatment option, with plans for a Biologics License Application submission by 2026. This development strengthens Transcenta’s position in the oncology sector, particularly in regions where it holds exclusive commercialization rights.

Transcenta Advances Financial and Strategic Initiatives to Strengthen Position

Transcenta Holding Limited has made significant progress in addressing the disclaimer of opinion in its 2024 annual report by implementing key measures to strengthen its financial position and enhance liquidity. The company is actively engaging with global and regional partners for the development and commercialization of its major pipeline assets, pursuing out-licensing and fundraising opportunities, and exploring innovative financing models to support its research and development efforts. These actions are expected to improve the company’s operational capabilities and strategic positioning in the biotechnology industry.

Transcenta Explores Blockchain-Based Financing for Oncology Innovations

Transcenta Holding Limited has announced a strategic collaboration with IVD Medical Holding Limited and its subsidiaries to explore the issuance of Real-World Asset Tokens on the Ethereum blockchain. This innovative financing strategy, enabled by regulatory reforms in the U.S. and China, aims to fund the accelerated development of several oncology treatments, potentially democratizing investment opportunities in biotechnology and enhancing the company’s industry positioning.

Transcenta Completes HK$59.34 Million Share Placement

Transcenta Holding Limited has successfully completed the placement of 14,400,000 new shares under a general mandate, raising approximately HK$59.34 million. This strategic move, facilitated by BOCI Asia Limited, aims to strengthen the company’s financial position and potentially enhance its market presence, with the new shares being issued to independent third-party investors.

Transcenta Holding Limited Announces New Share Placement to Raise HK$59.34 Million

Transcenta Holding Limited has announced a new share placement under a general mandate, involving the issuance of 14,400,000 shares, representing about 3.31% of the current total shares. The placement, coordinated by BOCI Asia Limited, is priced at a discount to recent market prices, aiming to raise approximately HK$59.34 million in net proceeds. This strategic move is intended to strengthen the company’s financial position and support its operational goals, although completion is contingent on certain conditions being met.