Ascentage Pharma Group International (6855) AI Stock Analysis

• Market Cap: HK$19.85B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -56.94%
• EPS Growth: -190.36%
• Country: HK
• Employees: 567
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.90
• Shares Outstanding: 373,321,620
• 10 Day Avg. Volume: 1,948,642
• 30 Day Avg. Volume: 2,293,783
• PEG Ratio: 0.54
• Price to Book (P/B): 48.81
• Price to Sales (P/S): 13.15
• P/FCF Ratio: -95.06
• 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$89.00
• Price Target Upside: 66.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$63.00 ▲(17.54% Upside)

The overall stock score of 45 reflects significant challenges in financial performance, particularly in profitability and cash flow generation, despite strong revenue growth. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold signals. Valuation metrics are weak due to negative earnings and lack of dividends, highlighting the need for financial improvements to enhance investor appeal.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong demand for the company's products and successful expansion efforts, which can enhance market position and drive future profitability.

Product Portfolio

The focus on innovative therapies for cancer and chronic diseases positions the company to address significant unmet medical needs, potentially leading to strong market differentiation and long-term growth.

Gross Profit Margin

A high gross profit margin suggests effective cost management and strong pricing power, which can support profitability as the company scales its operations.

Negative Factors

Profitability Challenges

Ongoing profitability challenges indicate difficulties in achieving operational efficiency, which could hinder sustainable growth and investor confidence if not addressed.

High Leverage

Significant leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Negative Cash Flow

Persistent negative cash flow indicates challenges in funding operations and growth internally, which may necessitate external financing and increase financial vulnerability.

Ascentage Pharma Group International Business Overview & Revenue Model

Company Description

Ascentage Pharma Group International, a clinical-stage biotechnology company, engages in developing therapies for cancers, chronic hepatitis B virus (HBV), and age-related diseases in the United States and Mainland China. Its primary product HQP1351, a BCR-ABL inhibitor targeting BCR-ABL mutants, including those with the T315I mutation, as well as for patients with tyrosine kinase inhibitor resistant chronic phase chronic myeloid leukemia. It also has APG-2575, an orally administered Bcl-2 selective inhibitor for hematologic malignancies and solid tumors, which is under Phase Ib/II clinical study; APG-115, an oral small molecule inhibitor of the MDM2-p53 protein-protein interaction for treating solid tumors and hematological malignancies; and APG-1387, a small molecule inhibitor of apoptosis proteins for advanced solid tumors and chronic HBV infection. In addition, it is involved in the development of APG-1252, a small molecule drug to restore apoptosis through selective inhibition of the Bcl-2 and Bcl-xL proteins for SCLC, lymphoma, and other solid tumors; APG-2449 for non-small-cell lung carcinoma; APG-5918, an orally available and selective EED inhibitor with a best-in-class potential that is under pre-clinical stage; APG-265, which is in the IND-enabling stage for hematological malignancies and solid tumors; and UBX1967/1325 targeting Bcl family indicated for DME that is under Phase II development. Ascentage Pharma Group International has collaboration relationships with major biotechnology and pharmaceutical companies, and academic institutions, which include Innovent Biologics, Inc.; National Cancer Institute; Pfizer Inc.; and Clover Biopharmaceuticals (Hong Kong) Co., Limited. The company was founded in 2009 and is headquartered in Suzhou, China.

How the Company Makes Money

Ascentage Pharma generates revenue through multiple streams, primarily from the development and commercialization of its pharmaceutical products. The company earns money by advancing its drug candidates through clinical trials, ultimately seeking regulatory approval for commercialization. Additionally, Ascentage engages in strategic partnerships and collaborations with other pharmaceutical companies, which can provide upfront payments, milestone payments upon achieving specific development targets, and royalties on future sales. These partnerships are crucial for funding research and development activities, as well as expanding its market reach. The company may also explore licensing agreements for its drug candidates, adding to its revenue potential.

Ascentage Pharma Group International Financial Statement Overview

Summary

Ascentage Pharma Group International shows strong revenue growth, yet struggles with profitability and cash flow generation. The increasing revenue is overshadowed by negative margins and high leverage, posing risks to financial stability. The balance sheet reflects significant debt levels, which require careful management. Overall, the company needs to focus on improving profitability and cash flow to enhance financial health and long-term viability.

Income Statement

The company has demonstrated significant revenue growth, with total revenue increasing from HK$221.98M in 2023 to HK$980.65M in 2024, marking a growth rate of 342%. However, profitability remains a concern as indicated by negative EBIT and net profit margins. The EBIT margin improved from -401.69% in 2023 to -38.63% in 2024, but is still negative, reflecting ongoing challenges in achieving operational efficiency. Gross profit margin is relatively high at 97.03% in 2024, but net profit margin remains deeply negative at -41.33%, indicating persistent net losses.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 6.31 in 2024, highlighting significant leverage and potential financial risk. Stockholders' equity has decreased, raising concerns about financial stability. However, the equity ratio improved slightly to 10.09% in 2024. While total assets increased, the high level of liabilities remains a concern for long-term solvency. Return on equity is negative due to ongoing net losses, emphasizing the need for profitability improvements.

Cash Flow

Cash flow analysis reveals challenges in generating positive operating cash flow, with a substantial reduction from HK$-726.08M in 2023 to HK$0 in 2024. Free cash flow remains negative, reflecting continuous cash outflows that may constrain future growth opportunities. The lack of available data for cash flow ratios further complicates the evaluation of cash flow health. The company needs to address cash flow generation to ensure sustainable operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	390.60M	980.65M	221.98M	209.71M	27.91M	12.45M
Gross Profit	354.93M	951.57M	191.44M	187.71M	24.58M	10.48M
EBITDA	-1.04B	-299.63M	-743.61M	-835.99M	-915.99M	-641.77M
Net Income	-1.16B	-405.43M	-925.64M	-882.92M	-782.42M	-677.61M
Balance Sheet
Total Assets	3.05B	2.62B	2.50B	2.83B	2.94B	1.73B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.26B	1.10B	1.50B	1.75B	1.03B
Total Debt	1.72B	1.67B	1.80B	1.79B	1.08B	529.70M
Total Liabilities	2.37B	2.34B	2.43B	2.42B	1.71B	884.42M
Stockholders Equity	666.00M	264.19M	60.42M	408.66M	1.23B	846.62M
Cash Flow
Free Cash Flow	-216.89M	-135.65M	-782.92M	-857.20M	-1.04B	-859.88M
Operating Cash Flow	-189.09M	-111.36M	-726.08M	-653.91M	-604.68M	-609.96M
Investing Cash Flow	-935.28M	-362.04M	21.92M	-384.61M	-466.52M	-107.37M
Financing Cash Flow	868.61M	314.77M	368.75M	619.27M	1.78B	1.04B

Ascentage Pharma Group International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6855, the sentiment is Negative. The current price of 53.6 is below the 20-day moving average (MA) of 59.18, below the 50-day MA of 63.08, and below the 200-day MA of 63.39, indicating a bearish trend. The MACD of -2.71 indicates Positive momentum. The RSI at 28.91 is Positive, neither overbought nor oversold. The STOCH value of 6.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6855.

Ascentage Pharma Group International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2696	66 Neutral	HK$32.66B	36.70	27.37%	―	2.57%	18.79%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6855	45 Neutral	HK$19.85B	-13.67	-161.12%	―	-56.94%	-190.36%
1952	45 Neutral	HK$15.78B	-20.35	-15.75%	―	102.73%	38.42%
9969	40 Underperform	HK$19.59B	-92.85	-3.36%	―	58.24%	38.85%
1877	38 Underperform	HK$35.58B	-21.99	-15.06%	―	38.56%	48.26%

Ascentage Pharma Group International Corporate Events

Ascentage Pharma’s Olverembatinib Phase III Trial Cleared by US FDA and EMA

Ascentage Pharma has announced the clearance from the US FDA and EMA for a global Phase III study of olverembatinib in combination with chemotherapy for newly diagnosed Ph+ ALL patients. This study, known as POLARIS-1, aims to accelerate the drug’s registration in the US and Europe and has shown promising efficacy and safety results in early data. The study’s success could significantly impact the treatment landscape for Ph+ ALL, offering a new option for patients with limited current treatments.

Ascentage Pharma Grants Further RSU Awards to Strengthen Growth Strategy

Ascentage Pharma Group International announced the further grant of awards under its 2022 RSU Scheme, allocating 1,304,457 RSUs to 146 selected individuals, including directors and service providers. This move is part of the company’s strategy to incentivize its team and align their interests with long-term growth objectives, potentially enhancing its competitive positioning in the biopharmaceutical industry.

Ascentage Pharma to Showcase Latest Clinical Study Results at ASH 2025

Ascentage Pharma announced that it will present the latest results from multiple clinical studies of its investigational drug candidates at the 67th American Society of Hematology (ASH) Annual Meeting in 2025. The presentations will include data on olverembatinib, a third-generation BCR-ABL inhibitor, and lisaftoclax, a Bcl-2 inhibitor, highlighting their potential in treating various hematologic malignancies. This participation underscores Ascentage Pharma’s ongoing commitment to advancing cancer therapies and its strong presence in the international hematology community.