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

Zai Lab Ltd (9688) AI Stock Analysis

Compare
4 Followers

Top Page

HK

Zai Lab Ltd

(Frankfurt:9688)

Rating:51Neutral
Price Target:
HK$29.00
▲(6.62%Upside)
The overall stock score is driven primarily by solid revenue growth and a stable balance sheet, which are somewhat offset by ongoing profitability and cash flow management challenges. Positive technical indicators suggest some market confidence, but valuation concerns due to the negative P/E ratio and lack of dividend yield weigh heavily on the score.

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 prominent biopharmaceutical company focused on the development and commercialization of therapies for oncology, autoimmune and infectious diseases. The company leverages its strong research and development capabilities to bring innovative medicines to patients in China and other global markets. Zai Lab collaborates with leading international pharmaceutical companies to enhance its portfolio and deliver cutting-edge treatments.
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 is experiencing robust revenue growth; however, profitability remains a significant challenge due to high operating expenses. The balance sheet shows strong equity and manageable debt levels, ensuring financial stability, but ongoing losses impact return metrics. Cash flow management is improving but still needs enhancement for sustainable growth.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue398.99M266.72M215.04M144.31M48.96M
Gross Profit251.13M170.90M141.02M92.07M32.22M
EBITDA-242.99M-365.11M-384.66M-689.46M-262.96M
Net Income-257.10M-334.62M-481.99M-692.44M-298.16M
Balance Sheet
Total Assets1.19B1.04B1.22B1.61B1.30B
Cash, Cash Equivalents and Short-Term Investments779.67M806.45M1.01B1.41B1.19B
Total Debt153.47M15.15M20.39M15.54M18.60M
Total Liabilities344.86M240.18M174.54M230.00M128.29M
Stockholders Equity840.90M796.12M1.05B1.38B1.17B
Cash Flow
Free Cash Flow-276.39M-206.67M-392.63M-568.18M-226.72M
Operating Cash Flow-214.87M-198.18M-367.64M-549.23M-216.06M
Investing Cash Flow-375.19M-10.78M420.02M249.96M-554.83M
Financing Cash Flow349.89M-6.43M-1.73M820.20M1.13B

Zai Lab Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price27.20
Price Trends
50DMA
27.07
Positive
100DMA
26.71
Positive
200DMA
23.99
Positive
Market Momentum
MACD
-0.10
Positive
RSI
47.15
Neutral
STOCH
64.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9688, the sentiment is Neutral. The current price of 27.2 is below the 20-day moving average (MA) of 27.92, above the 50-day MA of 27.07, and above the 200-day MA of 23.99, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 64.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9688.

Zai Lab Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$32.42B38.8031.65%4.23%47.71%
64
Neutral
HK$7.82B44.249.52%185.36%
61
Neutral
HK$40.71B-56.68%52.25%11.46%
60
Neutral
HK$17.01B5.47-7.44%3.80%11.55%-28.15%
59
Neutral
HK$9.22B-51.40%58.75%-1310.16%
59
Neutral
HK$38.89B-19.78%25.96%39.58%
51
Neutral
HK$30.15B-32.29%43.13%28.93%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9688
Zai Lab Ltd
27.20
12.62
86.56%
HK:2696
Shanghai Henlius Biotech, Inc. Class H
63.50
41.05
182.85%
HK:2157
Lepu Biopharma Co. Ltd. Class H
7.94
5.02
171.92%
HK:1877
Shanghai Junshi Biosciences Co., Ltd. Class H
25.20
12.52
98.74%
HK:9995
RemeGen Co. Ltd. Class H
70.75
55.25
356.45%
HK:9966
Alphamab Oncology
8.65
6.42
287.89%

Zai Lab Ltd Corporate Events

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.

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.

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: Jul 18, 2025