Transcenta Holding Limited (6628) AI Stock Analysis

• Market Cap: HK$1.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• 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: 1,125,950
• 30 Day Avg. Volume: 1,421,347
• 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): -5.67
• Revenue Forecast (FY): HK$101.62M

• Rating: 41 Neutral
• Price Target: HK$2.50 ▼(-29.97% 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.

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 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: 3.57
• 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 3.57 is above the 20-day moving average (MA) of 2.89, below the 50-day MA of 3.63, and above the 200-day MA of 2.38, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 35.19 is Neutral, neither overbought nor oversold. The STOCH value of 27.88 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	52 Neutral	HK$1.48B	181.90	0.99%	―	9.41%	-32.69%
2197	52 Neutral	HK$2.80B	-2.69	―	―	79.98%	-3.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3681	45 Neutral	HK$2.21B	―	-55.33%	―	-100.00%	30.68%
6628	41 Neutral	HK$1.16B	―	-34.18%	―	-57.84%	24.58%
2257	40 Neutral	HK$849.74M	―	―	―	―	83.89%
9939	36 Underperform	HK$815.90M	-4.26	-54.87%	―	―	81.67%

Transcenta Holding Limited Corporate Events

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.

The most recent analyst rating on (HK:6628) stock is a Sell with a HK$3.00 price target. To see the full list of analyst forecasts on Transcenta Holding Limited stock, see the HK:6628 Stock Forecast page.

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.

The most recent analyst rating on (HK:6628) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Transcenta Holding Limited stock, see the HK:6628 Stock Forecast page.

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.

The most recent analyst rating on (HK:6628) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Transcenta Holding Limited stock, see the HK:6628 Stock Forecast page.

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.

The most recent analyst rating on (HK:6628) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Transcenta Holding Limited stock, see the HK:6628 Stock Forecast page.

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.

The most recent analyst rating on (HK:6628) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Transcenta Holding Limited stock, see the HK:6628 Stock Forecast page.

Transcenta Reports Interim Results with Strategic Adjustments

Transcenta Holding Limited announced its interim results for the six months ended June 30, 2025, revealing a decrease in revenue primarily due to a decline in CDMO services. Despite this, the company saw an increase in other income from government subsidies and a reduction in research and development expenses, which contributed to a decrease in overall losses. The company’s strategic reprioritization of resources and pipeline advancement efforts were highlighted as key factors in the financial performance during this period.

The most recent analyst rating on (HK:6628) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Transcenta Holding Limited stock, see the HK:6628 Stock Forecast page.

Transcenta Holding Limited Schedules Board Meeting to Review Interim Results

Transcenta Holding Limited has announced a board meeting scheduled for August 27, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation of an interim dividend, indicating a potential return to shareholders and reflecting on the company’s financial health and strategic direction.