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Zai Lab Ltd (HK:9688)
:9688
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Zai Lab Ltd (9688) AI Stock Analysis

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HK:9688

Zai Lab Ltd

(Frankfurt:9688)

Rating:42Neutral
Price Target:
HK$22.00
▼(-10.57% Downside)
Zai Lab Ltd's overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but significant profitability and cash flow challenges. Technical analysis indicates bearish momentum, further weighing down the score. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield, contributing to a lower overall score.

Zai Lab Ltd (9688) vs. iShares MSCI Hong Kong ETF (EWH)

Zai Lab Ltd Business Overview & Revenue Model

Company DescriptionZai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience primarily in Mainland China and Hong Kong. The company's commercial products include Zejula, a once-daily small-molecule poly polymerase 1/2 inhibitor; Optune, a device that delivers tumor treating fields; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; and Qinlock to treat gastrointestinal stromal tumors. It also develops Odronextamab to treat follicular lymphoma, diffuse large B-cell lymphoma, and other B-celllymphomas; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Margetuximab for the treatment of breast and gastroesophageal cancers; Adagrasib for treating KRAS-G12C-mutated NSCLC, colorectal cancer, pancreatic cancer, and other solid tumors; and Bemarituzumab to treat gastric and gastroesophageal junction cancer. In addition, the company develops CLN-081 for the treatment of patients with EGFR exon 20 insertion NSCLC; Elzovantinib, an orally bioavailable multi-targeted kinase inhibitor; Tebotelimab, a tetravalent IgG4 monoclonal antibody; Retifanlimab that inhibits interactions between PD-1 and its ligands; ZL-2309, an orally active, selective, and ATP-competitive cell division cycle 7 (CDC7) kinase inhibitor; ZL-1201, a humanized IgG4 monoclonal antibody; Efgartigimod to reduce disease-causing immunoglobulin G antibodies; ZL-1102, a human nanobody targeting interleukin- 17A; KarXT for the treatment of psychiatric and neurological conditions; ZL-2313, an investigational inhibitor of triple-mutant EGFR harboring; ZL-2314, an investigational inhibitor of double-mutant EGFR harboring; and Sulbactam/durlobactam for the treatment of serious infections caused by Acinetobacter. Zai Lab Limited was incorporated in 2013 and is headquartered in Shanghai, China.
How the Company Makes MoneyZai Lab Ltd primarily generates revenue through the commercialization and sales of its pharmaceutical products. The company has a diverse revenue model that includes direct sales of approved therapies, milestone payments, and royalties from strategic partnerships and licensing agreements with global pharmaceutical companies. These partnerships often involve co-development and co-commercialization of drug candidates, which provide Zai Lab with upfront payments and a share of future sales. Additionally, Zai Lab invests in its pipeline of drug candidates, which, upon successful approval and market entry, contribute significantly to its revenue streams. The company's earnings are also influenced by its ability to expand market access and grow its presence in the rapidly evolving Chinese healthcare sector.

Zai Lab Ltd Financial Statement Overview

Summary
Zai Lab Ltd exhibits strong revenue growth and a solid gross profit margin, but faces significant profitability and cash flow challenges. The balance sheet is stable with low leverage, yet the negative return on equity and persistent losses indicate a need for strategic improvements to enhance profitability and cash flow management.
Income Statement
45
Neutral
Zai Lab Ltd has shown consistent revenue growth, with a TTM revenue growth rate of 2.27%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains strong at 63.45% for TTM, but the persistent negative net income and EBIT suggest challenges in managing operational costs.
Balance Sheet
50
Neutral
The company maintains a low debt-to-equity ratio of 0.24, indicating conservative leverage. However, the return on equity is negative, reflecting ongoing losses and challenges in generating shareholder value. The equity ratio is stable, suggesting a solid capital structure despite profitability issues.
Cash Flow
40
Negative
Zai Lab Ltd's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some efficiency in cash flow management relative to net losses. However, the negative free cash flow growth rate of -3.29% in TTM highlights cash flow challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue427.80M398.99M266.72M215.04M144.31M48.96M
Gross Profit266.92M251.13M170.90M141.02M92.07M32.22M
EBITDA-195.33M-242.99M-365.11M-384.66M-689.46M-262.96M
Net Income-212.52M-257.10M-334.62M-481.99M-692.44M-298.16M
Balance Sheet
Total Assets1.16B1.19B1.04B1.22B1.61B1.30B
Cash, Cash Equivalents and Short-Term Investments732.16M779.67M806.45M1.01B1.41B1.19B
Total Debt191.40M153.47M15.15M20.39M15.54M18.60M
Total Liabilities372.37M344.86M240.18M174.54M230.00M128.29M
Stockholders Equity791.74M840.90M796.12M1.05B1.38B1.17B
Cash Flow
Free Cash Flow-230.99M-276.39M-206.67M-392.63M-568.18M-226.72M
Operating Cash Flow-175.31M-214.87M-198.18M-367.64M-549.23M-216.06M
Investing Cash Flow-54.43M-375.19M-10.78M420.02M249.96M-554.83M
Financing Cash Flow332.01M349.89M-6.43M-1.73M820.20M1.13B

Zai Lab Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price24.60
Price Trends
50DMA
27.63
Negative
100DMA
26.96
Negative
200DMA
25.16
Negative
Market Momentum
MACD
-0.97
Positive
RSI
41.02
Neutral
STOCH
55.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9688, the sentiment is Negative. The current price of 24.6 is below the 20-day moving average (MA) of 26.13, below the 50-day MA of 27.63, and below the 200-day MA of 25.16, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 55.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9688.

Zai Lab Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
HK$48.21B52.4527.37%2.57%18.79%
61
Neutral
HK$10.51B40.3913.34%206.58%
57
Neutral
HK$14.98B-21.42%240.05%-140.09%
54
Neutral
HK$48.98B-16.25%44.21%46.11%
51
Neutral
$7.93B-0.32-43.43%2.21%22.30%-1.88%
47
Neutral
HK$55.77B-45.12%47.62%28.72%
42
Neutral
€28.24B-29.51%32.07%33.55%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9688
Zai Lab Ltd
24.60
8.84
56.09%
HK:9966
Alphamab Oncology
10.86
8.55
370.13%
HK:9995
RemeGen Co. Ltd. Class H
101.40
88.70
698.43%
HK:1877
Shanghai Junshi Biosciences Co., Ltd. Class H
36.84
26.38
252.20%
HK:2157
Lepu Biopharma Co. Ltd. Class H
8.19
5.27
180.48%
HK:2696
Shanghai Henlius Biotech, Inc. Class H
85.90
62.80
271.86%

Zai Lab Ltd Corporate Events

Zai Lab Reports Strong Q2 2025 Results and Pipeline Progress
Aug 7, 2025

Zai Lab Limited announced its unaudited financial results for the second quarter of 2025, reporting a 9% year-over-year increase in total revenues to $110 million. The company highlighted significant progress in its product pipeline, including record patient utilization of VYVGART and promising data for ZL-1310 in SCLC and bemarituzumab in gastric cancer. With a 28% reduction in operating loss and expectations of achieving profitability by the fourth quarter, Zai Lab is poised for growth with multiple high-impact product launches and a robust pipeline.

The most recent analyst rating on (HK:9688) stock is a Buy with a HK$24.34 price target. To see the full list of analyst forecasts on Zai Lab Ltd stock, see the HK:9688 Stock Forecast page.

Zai Lab Limited Files Quarterly Report with SEC
Aug 7, 2025

Zai Lab Limited announced the filing of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, with the U.S. Securities and Exchange Commission. This regulatory filing is significant for stakeholders as it provides detailed insights into the company’s financial performance and operational status, which can impact its market positioning and investor confidence.

The most recent analyst rating on (HK:9688) stock is a Buy with a HK$24.34 price target. To see the full list of analyst forecasts on Zai Lab Ltd stock, see the HK:9688 Stock Forecast page.

Zai Lab to Announce 2025 Interim Results on August 7
Jul 25, 2025

Zai Lab Limited has announced that its Audit Committee will review and approve the unaudited interim results for the first half of 2025 on August 7, 2025. The results, prepared in accordance with U.S. GAAP and SEC rules, will be published on the same day. Following the announcement, the company will host a live earnings teleconference and webcast to discuss the results. This announcement signifies Zai Lab’s commitment to transparency and adherence to regulatory standards, potentially impacting its market position and stakeholder confidence.

The most recent analyst rating on (HK:9688) stock is a Buy with a HK$24.34 price target. To see the full list of analyst forecasts on Zai Lab Ltd stock, see the HK:9688 Stock Forecast page.

Zai Lab Ltd Announces Equity Incentive Grants to Align Employee Interests
Jul 4, 2025

Zai Lab Ltd has announced the grant of share options, restricted share units, and performance share units under its 2024 Equity Incentive Plan. This move, which includes significant allocations to key personnel such as Dr. Samantha Du, aims to align the interests of employees with the company’s growth objectives and maintain competitive compensation practices. The grants are structured without performance targets or clawback mechanisms, reflecting the company’s customary practices and market competitiveness.

The most recent analyst rating on (HK:9688) stock is a Buy with a HK$24.34 price target. To see the full list of analyst forecasts on Zai Lab Ltd stock, see the HK:9688 Stock Forecast page.

Zai Lab Limited Announces Relocation of PRC Headquarters
Jun 30, 2025

Zai Lab Limited has announced a change in its head office and principal place of business in the People’s Republic of China. Effective July 1, 2025, the company’s new location will be in Pudong, Shanghai. This move may indicate strategic positioning within the region, potentially impacting its operational efficiency and market presence in China.

The most recent analyst rating on (HK:9688) stock is a Buy with a HK$24.34 price target. To see the full list of analyst forecasts on Zai Lab Ltd stock, see the HK:9688 Stock Forecast page.

Zai Lab Limited Announces Key Management Changes
Jun 27, 2025

Zai Lab Limited announced the resignation of Ms. Nelly Au-Yeung as joint company secretary and authorized representative, effective June 27, 2025. Mr. Frazor Titus Edmondson III will assume the role of sole company secretary and authorized representative, ensuring continuity in corporate governance. The board expressed gratitude to Ms. Au-Yeung for her contributions.

The most recent analyst rating on (HK:9688) stock is a Buy with a HK$24.34 price target. To see the full list of analyst forecasts on Zai Lab Ltd stock, see the HK:9688 Stock Forecast page.

Zai Lab Ltd Grants Share Options and Units Under 2024 Equity Plan
Jun 5, 2025

Zai Lab Ltd announced the granting of share options and restricted share units under its 2024 Equity Incentive Plan. On June 3, 2025, the company granted options to subscribe for 2,500 American Depositary Shares (ADSs) to one employee and restricted share units covering 4,104 ADSs to three employees. This move is part of Zai Lab’s strategy to align employee incentives with company performance, although the grants do not include performance targets or clawback mechanisms. The compensation committee believes this approach is market competitive and consistent with the company’s customary practices.

The most recent analyst rating on (HK:9688) stock is a Buy with a HK$24.34 price target. To see the full list of analyst forecasts on Zai Lab Ltd stock, see the HK:9688 Stock Forecast page.

Zai Lab Ltd Grants Restricted Share Units to Employees
May 14, 2025

Zai Lab Ltd announced the grant of 9,800 Restricted Share Units to two employees under its 2024 Equity Incentive Plan. This initiative aims to recognize and reward the employees’ contributions and incentivize their continued efforts towards the company’s success. The grants, which have no performance targets or clawback mechanisms, are seen as market competitive and aligned with the company’s practices, potentially enhancing employee retention and motivation.

The most recent analyst rating on (HK:9688) stock is a Buy with a HK$24.34 price target. To see the full list of analyst forecasts on Zai Lab Ltd stock, see the HK:9688 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 05, 2025