Zai Lab Ltd (HK:9688)
:9688
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Zai Lab Ltd
(9688)
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Rating:45Neutral
Price Target:
HK$15.00
▼(-9.53% Downside)
Action:ReiteratedDate:04/02/26
The score is held back mainly by continued losses and substantial negative operating/free cash flow despite strong revenue growth and healthy gross margins. Technicals are moderately constructive in the near term but remain weak versus the long-term trend (below the 200-day average). Valuation is constrained by negative earnings (negative P/E) and no dividend yield data.
Positive Factors
Sustained revenue scaling
Five-year revenue expansion from $49M to $460.8M shows persistent commercial traction and market penetration in Greater China. That scale supports longer-term operating leverage, funds ongoing R&D and commercial efforts, and strengthens the firm's ability to diversify revenue streams.
Negative Factors
Persistent negative cash flow
Ongoing large operating and free cash outflows indicate structural cash burn as commercialization and pipeline costs continue. Persistent negative cash generation forces reliance on external financing, which can dilute shareholders, constrain strategic flexibility, and elevate refinancing risk if markets tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue scaling
Five-year revenue expansion from $49M to $460.8M shows persistent commercial traction and market penetration in Greater China. That scale supports longer-term operating leverage, funds ongoing R&D and commercial efforts, and strengthens the firm's ability to diversify revenue streams.
Read all positive factors
Zai Lab Ltd (9688) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$18.77B
Dividend YieldN/A
Average Volume (3M)10.12M
Price to Earnings (P/E)―
Beta (1Y)1.18
Revenue Growth23.87%
EPS Growth30.08%
CountryHK
Employees1,869
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.36
Shares Outstanding1,134,128,000
10 Day Avg. Volume10,854,931
30 Day Avg. Volume10,116,373
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)2.68
Price to Sales (P/S)4.17
P/FCF Ratio-12.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$24.31Price Target Upside46.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-1.35
Revenue Forecast (FY)HK$3.92B
Zai Lab Ltd Business Overview & Revenue Model
Company Description
Zai 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-mo...
How the Company Makes Money
Zai Lab primarily makes money by commercializing prescription medicines in its markets. Key revenue streams include: (1) Product sales: revenue from selling approved drugs through hospitals, pharmacies, and other healthcare channels, where Zai Lab...
Zai Lab Ltd Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
32
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 460.84M | 398.99M | 266.72M | 215.04M | 144.31M |
| Gross Profit | 269.47M | 251.13M | 170.90M | 141.02M | 92.07M |
| EBITDA | -205.89M | -242.99M | -365.11M | -384.66M | -689.46M |
| Net Income | -175.80M | -257.10M | -334.62M | -481.99M | -692.44M |
Balance Sheet | |||||
| Total Assets | 1.17B | 1.19B | 1.04B | 1.22B | 1.61B |
| Cash, Cash Equivalents and Short-Term Investments | 789.47M | 779.67M | 806.45M | 1.01B | 1.41B |
| Total Debt | 237.61M | 153.47M | 15.15M | 20.39M | 15.54M |
| Total Liabilities | 456.82M | 344.86M | 240.18M | 174.54M | 230.00M |
| Stockholders Equity | 715.41M | 840.90M | 796.12M | 1.05B | 1.38B |
Cash Flow | |||||
| Free Cash Flow | -159.13M | -276.39M | -206.67M | -392.63M | -568.18M |
| Operating Cash Flow | -151.01M | -214.87M | -198.18M | -367.64M | -549.23M |
| Investing Cash Flow | 308.32M | -375.19M | -10.78M | 420.02M | 249.96M |
| Financing Cash Flow | 72.46M | 349.89M | -6.43M | -1.73M | 820.20M |
Zai Lab Ltd Technical Analysis
Positive
16.58
Price Trends
14.39
Positive
14.71
Positive
20.50
Negative
Market Momentum
0.20
Negative
66.55
Neutral
90.04
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 16.58 is above the 20-day moving average (MA) of 14.53, above the 50-day MA of 14.39, and below the 200-day MA of 20.50, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 66.55 is Neutral, neither overbought nor oversold. The STOCH value of 90.04 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$43.07B | 34.57 | 25.67% | ― | 2.57% | 18.79% | |
65 Neutral | HK$80.14B | 51.47 | 32.32% | ― | 46.14% | 39.56% | |
53 Neutral | HK$9.08B | -76.25 | -6.26% | ― | 206.58% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | HK$41.02B | -22.62 | -14.53% | ― | 38.56% | 48.26% | |
45 Neutral | HK$18.77B | -10.93 | -22.81% | ― | 23.87% | 30.08% | |
40 Underperform | HK$11.08B | 30.77 | 24.17% | ― | 240.05% | -140.09% |
* Healthcare Sector Average
HK:9688
Zai Lab Ltd
16.58
-5.22
-23.94%
HK:9966
Alphamab Oncology
9.32
3.39
57.17%
HK:9995
RemeGen Co. Ltd. Class H
110.00
80.10
267.89%
HK:1877
Shanghai Junshi Biosciences Co., Ltd. Class H
25.42
11.80
86.64%
HK:2157
Lepu Biopharma Co. Ltd. Class H
5.96
2.32
63.74%
HK:2696
Shanghai Henlius Biotech, Inc. Class H
79.25
53.25
204.81%
Zai Lab Ltd Corporate Events
Zai Lab Narrows Annual Loss as Product Revenue Climbs 15%
Mar 26, 2026
Zai Lab reported a 15% increase in net product revenue to $457.2 million for 2025, driven by strong demand and broader hospital adoption for XACDURO and higher sales of NUZYRA, despite some supply constraints. The company’s net loss narrowed...
Zai Lab Sets Date to Approve Hong Kong-Compliant 2025 Annual Results
Mar 16, 2026
Zai Lab has scheduled a board meeting for March 26–27, 2026, to consider and approve its annual results for the year ended December 31, 2025, prepared in accordance with Hong Kong listing rules. The board will also approve the publication of...
Zai Lab Awards Equity Incentives to CEO Under 2024 Plan
Mar 13, 2026
Zai Lab has granted share options, restricted share units and performance share units to its chairperson and chief executive officer, Dr. Samantha Du, under its 2024 Equity Incentive Plan. The package includes 353,430 American depositary share opt...
Zai Lab Grants New Equity Awards Under 2024 Incentive Plan
Mar 9, 2026
Zai Lab Limited has granted share options, restricted share units and performance share units to four employee participants under its 2024 Equity Incentive Plan, reinforcing its long-term incentive structure. The grants cover 374,220 American depo...
Zai Lab Details Board Composition and Committee Roles in Governance Update
Mar 5, 2026
Zai Lab Limited has outlined the current composition of its board of directors, led by Chairperson and Chief Executive Officer Dr. Samantha Du, and including a slate of independent directors with extensive industry and governance experience. The a...
Zai Lab Grants New Share Options and RSUs Under 2024 Equity Plan
Mar 5, 2026
Zai Lab has granted new equity awards under its 2024 Equity Incentive Plan, issuing 8,000 share options representing 80,000 underlying shares to four employee participants and 12,344 restricted share units representing 123,440 underlying shares to...
Zai Lab Redesignates Leon Moulder as Director in Board Governance Update
Mar 5, 2026
Zai Lab Limited has redesignated Leon O. Moulder, Jr. from independent director to director, effective immediately, while he continues to serve on its Research and Development and Commercial Committees. The move underscores the company’s rel...
Zai Lab Details Board Composition and Committee Roles
Feb 27, 2026
Zai Lab Limited has disclosed the current composition of its board of directors and the roles and functions of each member across five key board committees. The announcement details committee chair and member assignments for audit, compensation, n...
Zai Lab Posts Double-Digit 2025 Revenue Growth as Pipeline Advances Toward Global Launches
Feb 26, 2026
Zai Lab reported fourth-quarter 2025 revenue of $127.6 million, up 17% year on year, and full-year 2025 revenue of $460.2 million, a 15% increase, while confirming its audited results were prepared under U.S. GAAP and that reconciled Hong Kong-com...
Zai Lab Files 2025 Annual Report With U.S. SEC
Feb 26, 2026
Zai Lab Limited announced that it has filed its annual report on Form 10-K for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission. The filing, accessible via the SEC’s website and the company’s own...
Zai Lab Outlines Board Composition and Committee Roles
Feb 24, 2026
Zai Lab Limited has disclosed the current composition of its board of directors, led by Chairperson and Chief Executive Officer Dr. Samantha Du and supported by a group of independent directors. The announcement details the directors’ specif...
Zai Lab Sets February 26 Board Meeting to Approve and Release 2025 Annual Results
Feb 11, 2026
Zai Lab Limited has scheduled a board meeting for February 26, 2026 to consider and approve its audited financial results for the year ended December 31, 2025, prepared under U.S. GAAP and U.S. SEC requirements. If approved, the company will publi...
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.