tiprankstipranks
Trending News
More News >
Zai Lab Ltd (HK:9688)
:9688

Zai Lab Ltd (9688) AI Stock Analysis

Compare
4 Followers

Top Page

HK

Zai Lab Ltd

(Frankfurt:9688)

Rating:58Neutral
Price Target:
HK$33.00
▼(-0.45%Downside)
The stock of Zai Lab Ltd is supported by strong technical momentum, with prices well above key moving averages. However, significant profitability challenges and valuation concerns due to sustained losses weigh down the score. Financial stability remains a positive aspect, providing some resilience despite ongoing cash flow and profit margin issues.

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

Zai Lab Ltd Business Overview & Revenue Model

Company DescriptionZai Lab Ltd (9688) is a biopharmaceutical company focused on discovering, developing, and commercializing innovative medicines to address medical conditions with significant unmet needs. The company operates primarily in the fields of oncology, autoimmune and infectious diseases, and neuroscience. With a strategic emphasis on the Greater China market, Zai Lab partners with leading global biopharmaceutical companies to bring cutting-edge treatments to patients in the region.
How the Company Makes MoneyZai Lab Ltd generates revenue through various streams, primarily by licensing, developing, and commercializing pharmaceutical products. The company enters into strategic collaborations with global pharmaceutical firms to bring advanced therapies to the Chinese market, thus earning revenue from product sales, milestone payments, and royalties. Additionally, Zai Lab invests in its own research and development to create proprietary drugs, which upon successful commercialization, contribute to its earnings. Partnerships and collaborations are significant contributors to the company's revenue, enabling it to leverage external innovations while expanding its product portfolio and market presence.

Zai Lab Ltd Financial Statement Overview

Summary
Zai Lab Ltd shows strong revenue growth, but profitability is hindered by high operating expenses, resulting in negative net margins. The balance sheet is stable with strong equity and low debt, though profitability metrics like return on equity are negative. Cash flow management has minor improvements, yet remains a concern due to negative free cash flow.
Income Statement
40
Negative
The company's revenue has shown a consistent upward trend over the years, with TTM revenue increasing by 4.9% compared to the previous year. However, the company is still facing significant net losses, and the net profit margin remains negative at -60.26% in TTM. The gross profit margin is relatively strong at 63.44%, but high operating expenses are impacting profitability, as seen in the negative EBIT and EBITDA margins of -64.08% and -56.52%, respectively.
Balance Sheet
55
Neutral
The company maintains a strong equity position with an equity ratio of 69.05% in TTM, indicating financial stability. The debt-to-equity ratio is relatively low at 0.24, suggesting prudent leverage management. However, the return on equity is negative at -31.10%, reflecting ongoing profitability challenges despite a solid capital structure.
Cash Flow
45
Neutral
Cash flows show improvement, with a reduction in negative free cash flow growth rate from the previous year, although it remains negative at -13.56% in TTM. The operating cash flow to net income ratio is positive, suggesting some alignment between cash generation and accounting profits. However, the free cash flow to net income ratio remains negative, highlighting the need for cash management improvements.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
418.33M398.99M266.72M215.04M144.31M48.96M
Gross Profit
265.44M251.13M170.90M141.02M92.07M32.22M
EBIT
-268.12M-282.12M-366.57M-404.36M-700.06M-301.80M
EBITDA
-236.44M-242.99M-365.11M-384.66M-689.46M-262.96M
Net Income Common Stockholders
-252.07M-257.10M-334.62M-481.99M-692.44M-298.16M
Balance SheetCash, Cash Equivalents and Short-Term Investments
757.26M779.67M806.45M1.01B1.41B1.19B
Total Assets
1.17B1.19B1.04B1.22B1.61B1.30B
Total Debt
192.30M153.47M15.15M20.39M15.54M18.60M
Net Debt
-564.97M-296.20M-775.00M-988.08M-948.56M-423.52M
Total Liabilities
362.58M344.86M240.18M174.54M230.00M128.29M
Stockholders Equity
810.75M840.90M796.12M1.05B1.38B1.17B
Cash FlowFree Cash Flow
-238.84M-276.39M-206.67M-392.63M-568.18M-226.72M
Operating Cash Flow
-186.46M-214.87M-198.18M-367.64M-549.23M-216.06M
Investing Cash Flow
-52.35M-375.19M-10.78M420.02M249.96M-554.83M
Financing Cash Flow
345.48M349.89M-6.43M-1.73M820.20M1.13B

Zai Lab Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price33.15
Price Trends
50DMA
25.34
Positive
100DMA
25.10
Positive
200DMA
22.42
Positive
Market Momentum
MACD
2.18
Negative
RSI
71.57
Negative
STOCH
89.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9688, the sentiment is Positive. The current price of 33.15 is above the 20-day moving average (MA) of 26.99, above the 50-day MA of 25.34, and above the 200-day MA of 22.42, indicating a bullish trend. The MACD of 2.18 indicates Negative momentum. The RSI at 71.57 is Negative, neither overbought nor oversold. The STOCH value of 89.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9688.

Zai Lab Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$56.13B24.9114.19%1.13%14.36%33.22%
74
Outperform
HK$113.92B31.588.17%7.52%-1.92%
68
Neutral
HK$267.85B-11.43%50.53%50.84%
67
Neutral
$14.49B28.823.53%-3.12%-12.71%
62
Neutral
HK$3.78B21.214.47%-9.75%
58
Neutral
HK$36.50B-32.29%43.13%28.93%
54
Neutral
$5.38B3.27-45.10%3.30%16.81%0.02%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9688
Zai Lab Ltd
33.15
18.43
125.20%
HK:6160
BeiGene Ltd
165.30
68.45
70.68%
HK:1873
Viva Biotech Holdings
1.79
1.23
219.64%
HK:1530
3SBio
23.30
17.36
291.99%
HK:2269
Wuxi Biologics (Cayman)
28.00
16.10
135.29%
HK:2186
Luye Pharma Group
3.92
1.02
35.17%

Zai Lab Ltd Corporate Events

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.

Zai Lab Reports Strong Q1 2025 Results and Promising Oncology Advances
May 8, 2025

Zai Lab Limited reported a 22% year-over-year increase in total revenues for the first quarter of 2025, reaching $106.5 million, and is on track to achieve profitability by the fourth quarter of 2025. The company is advancing its oncology pipeline with promising data presentations and is poised for growth with a strong cash position and expanding global portfolio, aiming to drive long-term shareholder value.

Zai Lab Limited Files Q1 2025 Form 10-Q with SEC
May 8, 2025

Zai Lab Limited announced the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, with the U.S. Securities and Exchange Commission. This filing is part of the company’s regulatory compliance and provides stakeholders with updated financial and operational information, potentially impacting its market positioning and investor relations.

Zai Lab Ltd Announces 2025 Annual General Meeting
Apr 29, 2025

Zai Lab Ltd has announced its 2025 annual general meeting of shareholders, scheduled for June 18, 2025, in Shanghai and virtually. The meeting will address several key resolutions, including the re-election of directors, the appointment of KPMG as auditors, and the approval of executive compensation and share issuance mandates, which are crucial for the company’s governance and strategic planning.

Zai Lab to Announce Q1 2025 Results and Host Earnings Call
Apr 24, 2025

Zai Lab Limited has announced that its Audit Committee will review and approve the company’s unaudited quarterly results for the first quarter of 2025 on May 8, 2025. The results, prepared in accordance with U.S. GAAP and SEC rules, will be published on the same day. Following the release, the company will host a live earnings call and webcast to discuss the results, providing an opportunity for stakeholders to engage with the company’s management.

Zai Lab Prepares for 2025 Annual General Meeting with Proxy Filing
Apr 22, 2025

Zai Lab Limited has filed preliminary proxy materials with the U.S. Securities and Exchange Commission for its 2025 annual general meeting. The agenda includes the re-election of directors, approval of auditor appointments, and authorization for the board to manage share allotments and repurchases. This filing is a regulatory step towards the annual meeting, reflecting Zai Lab’s commitment to corporate governance and shareholder engagement.

Zai Lab Announces Equity Incentive Grants to Employees
Apr 3, 2025

Zai Lab Limited announced the grant of share options, restricted share units, and performance share units under its 2024 Equity Incentive Plan. The grants include 204,650 options to 40 employees, 420,100 restricted share units to 381 employees, and 32,975 performance share units to 4 employees. This initiative is part of the company’s strategy to align employee interests with corporate goals and maintain competitive compensation practices.

Zai Lab Limited Reports Strong Revenue Growth and Reduced Losses in 2024
Mar 27, 2025

Zai Lab Limited reported a 49% increase in net product revenue for 2024, reaching $397.6 million, driven by the successful launch and sales of VYVGART, as well as increased sales of ZEJULA and NUZYRA. The company also saw a 23% reduction in net loss to $257.1 million, attributed to revenue growth outpacing operating expenses, despite challenges such as decreased interest income and increased foreign currency loss.

Zai Lab to Announce 2024 Annual Results with HK Listing Compliance
Mar 17, 2025

Zai Lab Limited has announced that its board of directors will review and approve the company’s annual results for the year ended December 31, 2024, in accordance with the Hong Kong Listing Rules. These results, which align with the previously announced U.S. GAAP results filed with the SEC, will include additional disclosures required by Hong Kong regulations and a reconciliation to International Financial Reporting Standards. This action underscores Zai Lab’s commitment to transparency and regulatory compliance, potentially impacting its market perception and stakeholder confidence.

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.