Akeso, Inc. (9926) AI Stock Analysis

• Market Cap: HK$117.54B
• Dividend Yield: N/A
• Average Volume (3M): 11.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 33.46%
• EPS Growth: -7.60%
• Country: HK
• Employees: 3,035
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.72
• Shares Outstanding: 921,143,200
• 10 Day Avg. Volume: 8,237,327
• 30 Day Avg. Volume: 11,452,631
• PEG Ratio: 0.76
• Price to Book (P/B): 7.12
• Price to Sales (P/S): 22.84
• P/FCF Ratio: -43.58
• 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$180.81
• Price Target Upside: 43.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$111.00 ▼(-11.97% Downside)

Akeso, Inc. faces significant challenges with negative earnings, bearish technical indicators, and liquidity risks. The strong gross margins are a positive aspect but are overshadowed by profitability and cash flow issues. The stock's valuation is unattractive due to negative earnings and lack of dividends, further impacting its overall score.

Positive Factors

Strong Gross Margins

Strong gross margins indicate efficient production and cost management, providing a buffer against profitability challenges and supporting long-term financial stability.

Proprietary Technology Platform

The proprietary technology platform enhances Akeso's ability to innovate and develop unique antibody drugs, fostering competitive advantage and long-term growth potential in the biopharmaceutical sector.

Revenue Growth

Strong revenue growth reflects successful commercialization and market acceptance of Akeso's products, indicating a robust demand and potential for sustained business expansion.

Negative Factors

Profitability Issues

Persistent profitability issues, as indicated by negative net profit margins, suggest operational inefficiencies and challenges in achieving sustainable earnings, impacting long-term financial health.

Negative Cash Flow

Negative cash flow from operations highlights difficulties in cash generation, which can strain liquidity and limit the company's ability to invest in growth opportunities or weather financial downturns.

Leverage and Liquidity Risks

Moderate leverage combined with liquidity risks can constrain financial flexibility, potentially affecting the company's ability to meet obligations and invest in strategic initiatives.

Akeso, Inc. Business Overview & Revenue Model

Company Description

Akeso, Inc., a biopharmaceutical company, researches, develops, manufactures, and commercializes therapies. The company develops AK104, a PD-1/CTLA-4 bi-specific antibody to treat cervical cancer, gastric cancer (GC), gastroesophageal junction (GEJ) adenocarcinoma, hepatocellular carcinoma (HCC), non-small cell lung cancer (NSCLC), small cell lung cancer (SCLC), nasopharyngeal carcinoma (NPC), clear cell renal cell carcinoma, and solid tumors; and AK112, a PD-1/VEGF bi-specific antibody to treat solid and gynecological tumors, NSCLC, SCLC, and triple-negative breast cancer (TNBC). It is also developing AK105, a PD-1 monoclonal antibody to treat NSCLC, NPC, classic Hodgkin's lymphoma (R/R cHL), HCC, head and neck cancer, thyroid cancer, mesothelioma and thymic cancer, ESCC, UC, GC, GEJ, cholangiocarcinoma, neuroendocrine tumor, and mismatch repair deficient solid tumor; AK117, a CD47 monoclonal antibody to treat myelodysplastic syndrome, acute myeloid leukemia, GC, GEJ, ESCC, TNBC, HNSCC, R/R cHL, NPC, NSCLC, and solid tumors/lymphoma; AK119, a CD73 monoclonal antibody for treating solid tumors; and AK109, a VEGFR-2 monoclonal antibody to treat solid tumors and gastric cancer. In addition, the company develops AK120, an IL-4R monoclonal antibody to treat moderate-to-severe atopic dermatitis and asthma, and eosinophilic esophagitis; AK101, an IL-12/IL-23 monoclonal antibody to treat moderate-to-severe psoriasis and ulcerative colitis; AK111, an IL-17 monoclonal antibody to treat moderate-to-severe psoriasis and ankylosing spondylitis; and AK102, a PCSK9 monoclonal antibody to treat hypercholesterolemia. Further, its preclinical product includes AK127, a TIGIT monoclonal antibody to treat solid tumors; and AK115, a NGF monoclonal antibody. The company has collaboration agreements with Pfizer Pharmaceuticals, AstraZeneca Pharmaceuticals, and MD Anderson Medical Institute. Akeso, Inc. was founded in 2012 and is headquartered in Zhongshan, the People's Republic of China.

How the Company Makes Money

Akeso, Inc. generates revenue primarily through the development and commercialization of its pharmaceutical products. The company's revenue model is based on several key streams, including direct sales of approved drugs, licensing agreements with other pharmaceutical companies, and milestone payments associated with the successful progress of its drug candidates through clinical trials. Additionally, Akeso may earn revenue from partnerships and collaborations that involve co-development or research initiatives. Significant partnerships with larger pharmaceutical firms may also provide upfront payments and royalties, contributing to the company's overall earnings.

Akeso, Inc. Financial Statement Overview

Summary

Akeso, Inc. exhibits a mixed financial profile with strong gross margins but persistent profitability issues. The balance sheet is moderately leveraged, but cash flow challenges highlight potential liquidity risks. The company needs to improve operational efficiency and cash management to enhance overall financial health.

Income Statement

Akeso, Inc. has demonstrated inconsistent revenue growth, with a significant decline from 2023 to 2024. The gross profit margin remains strong, but the company has faced negative net profit margins in recent years, indicating ongoing profitability challenges. The EBIT and EBITDA margins have also been negative, highlighting operational inefficiencies.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. Equity ratio is relatively stable, reflecting a balanced asset structure. However, the negative ROE indicates that the company is not currently generating positive returns on equity, posing a risk to shareholder value.

Cash Flow

Cash flow from operations has been negative in 2024, reflecting challenges in cash generation. Free cash flow has decreased, and the ratio of operating cash flow to net income indicates inefficiencies in cash management. Despite this, the financing cash flow suggests some level of external capital support.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.51B	2.12B	4.53B	837.66M	225.63M	0.00
Gross Profit	2.02B	1.83B	4.39B	734.54M	195.41M	-1.90M
EBITDA	-704.02M	-604.99M	2.17B	-1.27B	-1.32B	-1.01B
Net Income	-846.01M	-514.51M	2.03B	-1.17B	-1.07B	-1.04B
Balance Sheet
Total Assets	13.29B	12.75B	9.18B	5.50B	4.81B	3.86B
Cash, Cash Equivalents and Short-Term Investments	7.14B	7.32B	4.88B	2.29B	2.65B	2.80B
Total Debt	4.54B	3.95B	2.99B	1.88B	859.42M	198.99M
Total Liabilities	6.93B	6.00B	4.66B	2.95B	1.53B	405.73M
Stockholders Equity	6.44B	6.81B	4.69B	2.64B	3.16B	3.19B
Cash Flow
Free Cash Flow	-163.83M	-1.11B	1.59B	-2.02B	-1.71B	-1.06B
Operating Cash Flow	-408.62M	-527.62M	2.47B	-1.24B	-1.00B	-617.77M
Investing Cash Flow	-3.48B	-1.52B	-4.00B	-889.75M	-579.59M	-555.70M
Financing Cash Flow	2.84B	3.39B	960.89M	1.49B	1.59B	2.88B

Akeso, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 126.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9926, the sentiment is Positive. The current price of 126.1 is above the 20-day moving average (MA) of 118.20, above the 50-day MA of 117.39, and above the 200-day MA of 115.65, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 60.55 is Neutral, neither overbought nor oversold. The STOCH value of 85.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9926.

Akeso, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2269	63 Neutral	HK$153.19B	33.71	9.79%	―	16.90%	63.11%
1801	61 Neutral	$154.90B	120.42	8.41%	―	52.78%	―
1177	54 Neutral	HK$122.15B	30.60	11.72%	1.40%	13.69%	50.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9926	43 Neutral	HK$117.54B	-123.87	-14.40%	―	33.46%	-7.60%
9995	40 Neutral	HK$57.70B	-49.16	-39.64%	―	46.14%	39.56%
1877	38 Underperform	HK$40.05B	-24.23	-15.06%	―	38.56%	48.26%

Akeso, Inc. Corporate Events

Akeso Restructures MAb Manufacturing Deal as Joint Venture Becomes Connected Transaction

Akeso has updated the contractual framework governing the manufacturing of its monoclonal antibody products for its joint venture CTTQ-Akeso, which was established with partner Chia Tai Tianqing. Under a supplemental agreement effective 1 January 2025, CTTQ-Akeso will, in principle, source equal quantities of MAb products from both Akeso Biopharma and Nanjing Tianqing, reflecting a shared production arrangement between the two manufacturing partners. Because CTTQ-Akeso is no longer classified as an insignificant subsidiary, Chia Tai Tianqing and its 95%-owned Nanjing Tianqing have become connected persons at the subsidiary level, making the supplemental agreement a continuing connected transaction subject to Hong Kong listing rule disclosure and annual review requirements. Akeso acknowledged that this supplemental agreement should have been announced earlier and attributed the delay to an inadvertent oversight, and it has appointed Rainbow Capital as independent financial adviser to justify the longer-than-three-year term of the agreement, underscoring the company’s need to align its collaboration structures with ongoing regulatory compliance obligations.

The most recent analyst rating on (HK:9926) stock is a Hold with a HK$130.00 price target. To see the full list of analyst forecasts on Akeso, Inc. stock, see the HK:9926 Stock Forecast page.

Akeso’s Innovative Drugs Included in China’s 2025 NRDL

Akeso, Inc. announced that all approved indications of its five marketed innovative drugs have been included in China’s 2025 National Reimbursement Drug List (NRDL), effective January 1, 2026. This inclusion is expected to enhance the company’s market presence and accessibility of its treatments, potentially benefiting patients with various conditions such as cancer, hypercholesterolemia, and psoriasis.

The most recent analyst rating on (HK:9926) stock is a Hold with a HK$130.00 price target. To see the full list of analyst forecasts on Akeso, Inc. stock, see the HK:9926 Stock Forecast page.

Akeso’s Ivonescimab Shows Promising Results in HARMONi-6 Trial for Advanced sq-NSCLC

Akeso, Inc. announced the results of its HARMONi-6 trial, which were presented at the 2025 European Society For Medical Oncology Symposium and published in The Lancet. The trial demonstrated that ivonescimab plus chemotherapy significantly improved progression-free survival in patients with advanced sq-NSCLC compared to tislelizumab plus chemotherapy. The trial results highlight the superior efficacy and safety profile of ivonescimab, reinforcing Akeso’s leadership in oncology and addressing clinical gaps in current treatments.

The most recent analyst rating on (HK:9926) stock is a Hold with a HK$131.00 price target. To see the full list of analyst forecasts on Akeso, Inc. stock, see the HK:9926 Stock Forecast page.