Transcenta Holding Limited (6628) AI Stock Analysis

• Market Cap: HK$610.93M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -79.65%
• EPS Growth: 37.50%
• Country: HK
• Employees: 184
• Sector: Healthcare
• Sector Strength: 46
• Industry: Biotechnology
• EPS (TTM): -0.42
• Shares Outstanding: 437,361,940
• 10 Day Avg. Volume: 990,254
• 30 Day Avg. Volume: 1,137,692
• PEG Ratio: -0.17
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.97
• 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

• Rating: 47 Neutral
• Price Target: HK$1.50 ▲(4.90%Upside)

The overall stock score is primarily impacted by significant financial challenges, including negative profitability and cash flow issues, which highlight potential risks in the company's financial stability. Technical analysis provides a slightly more positive outlook due to some support from longer-term moving averages. However, valuation metrics remain weak due to negative earnings, indicating limited attractiveness from a valuation perspective.

Transcenta Holding Limited Business Overview & Revenue Model

Company Description

Transcenta Holding Limited (6628) is a biopharmaceutical company engaged in the discovery, development, and manufacturing of innovative biologics. The company operates within the healthcare sector, focusing on oncology, bone and kidney diseases, and other unmet medical needs. Transcenta leverages its integrated technology platforms to advance its pipeline of therapeutic candidates and aims to provide accessible and affordable treatments to patients globally.

How the Company Makes Money

Transcenta Holding Limited generates revenue primarily through the development and commercialization of its proprietary biologic therapies. The company's revenue streams include milestone payments, licensing fees, and royalties from collaborative partnerships with other pharmaceutical companies. Additionally, Transcenta may earn income from government grants and contracts for research and development activities. The company's vertically integrated model, encompassing drug discovery, development, and manufacturing, enables it to optimize costs and streamline its path to market, enhancing its profitability potential.

Transcenta Holding Limited Financial Statement Overview

Summary

Transcenta Holding Limited faces significant financial challenges, particularly with respect to profitability and cash flow generation. The income statement shows negative margins and declining revenues. The balance sheet indicates high leverage and negative returns, while cash flow statements reveal a struggle to generate positive cash flows. These factors suggest a need for strategic restructuring or additional capital to improve financial stability.

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: Positive
• Last Price: 1.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6628, the sentiment is Positive. The current price of 1.43 is below the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.37, and above the 200-day MA of 1.10, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 18.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	64 Neutral	HK$1.48B	36.94	4.92%	―	38.48%	―
2257	56 Neutral	HK$475.35M	―	-266.90%	―	―	31.23%
3681	56 Neutral	HK$2.80B	―	-75.64%	―	42.21%	29.52%
Sector *	51 Neutral	$7.36B	0.28	-61.07%	2.37%	17.46%	1.71%
6628	47 Neutral	HK$610.93M	―	-32.59%	―	-79.65%	37.50%
2197	45 Neutral	HK$330.75M	―		―	-1.73%	-689.53%
9939	36 Underperform	HK$651.62M	―	-41.20%	―	―	85.23%

Transcenta Holding Limited Corporate Events

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.

Transcenta Unveils Promising Preclinical Results for Novel Cancer Therapy

Transcenta Holding Limited announced promising preclinical results for its novel FGFR2b-targeted ADC, TST105, at the AACR Annual Meeting 2025. The ADC demonstrated significantly enhanced anti-tumor activity compared to existing MMAE-based ADCs in gastric and colorectal tumor models. With a novel topoisomerase I inhibitor payload and site-specific conjugation, TST105 showed superior tumor growth inhibition and overall response rates. This advancement positions Transcenta as a potential leader in developing transformative cancer therapies, with plans to advance TST105 into clinical development.

Transcenta Grants Award Shares to Employees Under Incentive Scheme

Transcenta Holding Limited has announced the grant of 676,000 Award Shares to 27 employees as part of its Share Incentive Scheme. This initiative aims to reward and retain employees for their contributions to the company’s growth and development. The shares, representing 0.15% of the total issued share capital, will vest over one year without performance targets attached. The scheme includes a clawback mechanism for various circumstances, ensuring alignment with the company’s long-term goals.

Transcenta Clarifies Annual Results Announcement

Transcenta Holding Limited has issued a supplemental announcement to clarify details in its annual results for the year ended December 31, 2024. The company has removed certain paragraphs related to impairment assessment from its previous announcement, with the auditor confirming that the disclaimer of opinion pertains only to the going concern issue. This amendment aims to prevent any confusion and ensure compliance with listing rules.

Transcenta Reports 2024 Financial Results with Strategic R&D Reprioritization

Transcenta Holding Limited announced its audited consolidated financial results for the year ending December 31, 2024, revealing a significant decrease in revenue and other income, primarily due to a reduction in CDMO services and interest income. Despite these declines, the company managed to reduce its overall loss and comprehensive expenses by reprioritizing its research and development investments and cutting administrative costs, which may positively impact its future financial stability and operational focus.