Antengene Corporation Limited (6996) AI Stock Analysis

• Market Cap: HK$2.52B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.42
• Revenue Growth: 49.64%
• EPS Growth: 59.58%
• Country: HK
• Employees: 169
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 679,446,660
• 10 Day Avg. Volume: 2,154,871
• 30 Day Avg. Volume: 1,927,373
• PEG Ratio: 0.03
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 4.12
• P/FCF Ratio: -0.99
• 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$5.76
• Price Target Upside: 9.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.38
• Revenue Forecast (FY): HK$141.68M

• Rating: 41 Neutral
• Price Target: HK$4.00 ▼(-24.10% Downside)

The overall stock score is primarily impacted by financial performance challenges, including significant profitability and cash flow issues. Technical analysis indicates bearish momentum, further weighing on the score. Valuation concerns, highlighted by a negative P/E ratio and lack of dividend yield, also contribute to the low score.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, which can drive long-term business expansion.

Balance Sheet Health

A strong equity position with low leverage provides financial stability and flexibility to withstand operational challenges.

Gross Profit Margin

A high gross profit margin reflects efficient cost management and pricing power, supporting long-term profitability potential.

Negative Factors

Profitability Challenges

Severe profitability issues indicate difficulty in managing expenses, which can hinder sustainable growth and investor confidence.

Cash Flow Issues

Negative cash flows highlight inefficiencies in revenue conversion, posing risks to liquidity and operational sustainability.

Eroding Equity

Erosion of equity due to losses threatens financial stability, potentially limiting future investment and growth opportunities.

Antengene Corporation Limited Business Overview & Revenue Model

Company Description

Antengene Corporation Limited (6996) is a biotechnology company focused on the discovery, development, and commercialization of innovative therapies for cancer treatment. The company operates primarily in the biopharmaceutical sector, concentrating on the development of monoclonal antibodies, small molecules, and other biologics aimed at addressing unmet medical needs in oncology. Antengene's core products include a pipeline of drug candidates designed to target various cancers, with efforts in both domestic and international markets.

How the Company Makes Money

Antengene Corporation generates revenue through multiple streams, primarily from the sale of its proprietary cancer therapies once they are approved and commercialized. The company invests significantly in research and development to bring its drug candidates through clinical trials, which is essential for securing regulatory approvals. Additionally, Antengene may enter into strategic partnerships and collaborations with other pharmaceutical companies, research institutions, and healthcare organizations, which can provide upfront payments, milestone payments, and royalties on product sales. These partnerships can enhance its financial stability and expand its market reach, contributing to the company's overall earnings.

Antengene Corporation Limited Financial Statement Overview

Summary

Antengene Corporation Limited shows strong revenue growth but faces significant profitability and cash flow challenges. The balance sheet remains relatively stable with low leverage, providing some buffer against ongoing losses. Immediate attention to operational and cash flow management is essential to enhance financial health and sustain future growth.

Income Statement

The company shows consistent revenue growth over the years, with a notable increase from 2023 to 2024. However, the profitability metrics are concerning as both EBIT and Net Income margins are significantly negative, indicating ongoing operational losses. The gross profit margin is relatively strong at approximately 80.65% in 2024, but the high negative net income margin of -347.28% suggests severe challenges in managing expenses relative to revenue.

Balance Sheet

The balance sheet presents a strong equity position with a high equity ratio of 63.28% in 2024, reflecting a solid asset base funded by equity rather than debt. The debt-to-equity ratio is low at 0.29, indicating limited leverage. However, the continuous high net losses have eroded stockholders' equity over time, posing a risk to financial stability.

Cash Flow

Cash flow figures indicate significant challenges, with consistently negative operating and free cash flows. The operating cash flow to net income ratio is undefined due to zero operating cash flow in 2024, highlighting inefficiencies in converting revenue to cash. The free cash flow has improved from a negative base, but remains a critical area of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.35M	91.95M	67.31M	160.13M	28.77M	0.00
Gross Profit	65.15M	74.17M	55.01M	132.00M	24.19M	0.00
EBITDA	-268.37M	-348.82M	-550.31M	-866.06M	-614.32M	-501.94M
Net Income	-228.59M	-319.25M	-581.18M	-601.49M	-655.53M	-2.93B
Balance Sheet
Total Assets	1.27B	1.34B	1.62B	2.14B	2.56B	3.19B
Cash, Cash Equivalents and Short-Term Investments	794.19M	900.24M	1.19B	1.79B	2.37B	3.11B
Total Debt	234.85M	249.44M	201.02M	57.95M	14.81M	10.92M
Total Liabilities	499.29M	493.93M	471.20M	428.84M	163.29M	156.59M
Stockholders Equity	766.33M	850.80M	1.15B	1.71B	2.39B	3.04B
Cash Flow
Free Cash Flow	-194.19M	-382.57M	-778.87M	-665.56M	-581.04M	-358.87M
Operating Cash Flow	-149.99M	-321.96M	-665.77M	-572.18M	-557.65M	-307.12M
Investing Cash Flow	370.46M	345.24M	587.07M	-208.16M	-103.88M	-600.57M
Financing Cash Flow	52.46M	45.17M	131.84M	-20.73M	-81.29M	2.79B

Antengene Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6996, the sentiment is Negative. The current price of 5.27 is above the 20-day moving average (MA) of 4.31, above the 50-day MA of 4.74, and above the 200-day MA of 4.48, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 34.49 is Neutral, neither overbought nor oversold. The STOCH value of 11.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6996.

Antengene Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1875	58 Neutral	HK$1.54B	188.57	0.99%	―	9.41%	-32.69%
1672	54 Neutral	HK$13.12B	-44.32	-12.74%	―	-76.58%	-4.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3681	45 Neutral	HK$2.02B	-10.09	-55.33%	―	-100.00%	30.68%
6996	41 Neutral	HK$2.52B	-10.52	-26.73%	―	49.64%	59.58%
2179	39 Underperform	HK$2.63B	-3.72	-129.05%	―	―	-18.99%
6978	37 Underperform	HK$1.76B	-6.43	―	―	―	27.90%

Antengene Corporation Limited Corporate Events

Antengene’s XPOVIO® Gains New Approvals in Hong Kong

Antengene Corporation Limited announced that the Hong Kong Department of Health has approved two supplemental New Drug Applications for XPOVIO® (selinexor) for additional indications in multiple myeloma and diffuse large B-cell lymphoma. This approval enhances Antengene’s market presence in Hong Kong and potentially broadens its impact on the treatment landscape for these diseases, reinforcing its position as a key player in the biotech industry.

Antengene Secures IND Approval for ATG-022 Study in China

Antengene Corporation Limited announced that the China National Medical Products Administration has approved the investigational new drug application for a Phase Ib/II study of ATG-022 in combination with KEYTRUDA and chemotherapy. This approval marks a significant step for Antengene in advancing its clinical pipeline and strengthening its position in the biotech industry, potentially offering new treatment options for diseases with unmet medical needs.