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InnoCare Pharma Ltd. (HK:9969)
:9969
Hong Kong Market
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InnoCare Pharma Ltd. (9969) AI Stock Analysis

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HK:9969

InnoCare Pharma Ltd.

(9969)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
HK$16.50
▼(-6.04% Downside)
InnoCare Pharma Ltd. faces significant challenges with profitability and cash flow, which are the most impactful factors on its stock score. While the company has strong revenue growth and a solid balance sheet, these positives are overshadowed by its negative net profit margin and lack of cash flow generation. Technical indicators show mixed momentum, and the valuation is unattractive due to the negative P/E ratio and lack of dividend yield.
Positive Factors
Revenue Growth
Strong revenue growth indicates successful market penetration and product adoption, which can lead to long-term business expansion and increased market share.
Balance Sheet Health
A low debt-to-equity ratio reflects a strong capital structure, providing financial flexibility and reducing risk, which supports sustainable growth.
Gross Profit Margin
A high gross profit margin indicates effective cost management and pricing power, which can enhance profitability as the company scales.
Negative Factors
Profitability Challenges
Ongoing profitability issues suggest operational inefficiencies and cost structure problems, which could hinder long-term financial performance if not addressed.
Cash Flow Concerns
Lack of cash generation from operations poses liquidity risks and limits the company's ability to invest in growth opportunities without relying on external financing.
Return on Equity
Negative return on equity indicates that the company is not generating sufficient returns on shareholder investments, which could affect investor confidence and capital raising capabilities.

InnoCare Pharma Ltd. (9969) vs. iShares MSCI Hong Kong ETF (EWH)

InnoCare Pharma Ltd. Business Overview & Revenue Model

Company DescriptionInnoCare Pharma Limited, a biopharmaceutical company, engages in discovering, developing, and commercializing drugs for the treatment of cancer and autoimmune diseases. It develops Orelabrutinib, an BTK inhibitor to treat patients with relapsed and/or refractory (r/r) chronic lymphocytic leukemia, r/r mantle cell lymphoma, r/r Waldenstrom's macroglobulinemia, r/r marginal zone lymphoma, r/r diffuse large B-cell lymphoma (DLBCL)- MCD, r/r central nervous system lymphoma, combo w/MIL-62, systemic lupus erythematosus, immune thrombocytopenia purpura, multiple sclerosis, and neuromyelitis optica spectrum disorder. The company is also developing ICP-192, a pan-FGFR inhibitor that is in a Phase I/II clinical trial for the treatment of solid tumor patients, including cholangiocarcinoma, and head and neck cancer; ICP-723, a pan-TRK inhibitor, which is in Phase I clinical trial to treat neurotrophic tyrosine receptor kinase fusion positive cancers; ICP-332, a novel tyrosine kinase 2 inhibitor that is in a Phase I clinical trial for the treatment of autoimmune diseases; and ICP-B02, a bispecific antibody for the treatment of lymphoma. In addition, it develops ICP-189, ICP-915, and ICP-B03 for the treatment of solid tumors; ICP-033 to treat liver cancer, renal cell carcinoma, colorectal cancer, and other solid tumors; ICP-488 for the treatment of autoimmune diseases; ICP-B05, an anti-CC chemokine receptor 8 monoclonal antibody for the treatment of various cancers; ICP-248 to treat hematology; and ICP-490 for the treatment of hematology and autoimmune diseases. Further, it offers ICP-B04 (Tafasitamab) to treat DLBCL/hematology. InnoCare Pharma Limited was incorporated in 2015 and is headquartered in Beijing, China.
How the Company Makes MoneyInnoCare Pharma Ltd. generates revenue through the development and commercialization of its proprietary drug candidates. The company's primary revenue streams include the sale of pharmaceutical products that have successfully gained regulatory approval and entered the market. Additionally, InnoCare engages in strategic partnerships and collaborations with other pharmaceutical companies, research institutions, and biotechnology firms, which often include licensing agreements, milestone payments, and royalties. These collaborations enable the company to leverage external expertise and resources, contributing significantly to its earnings. Revenue is also generated through research and development contracts and grants, supporting the ongoing progress of its drug pipeline.

InnoCare Pharma Ltd. Financial Statement Overview

Summary
InnoCare Pharma Ltd. shows strong revenue growth and a healthy balance sheet with low leverage. However, profitability is a concern with negative net profit margins and cash flow issues, indicating operational challenges.
Income Statement
45
Neutral
InnoCare Pharma Ltd. shows mixed results in its income statement. The gross profit margin is strong at approximately 86.3% for 2024, which is a positive indicator of cost management. However, the company is struggling with profitability as indicated by the negative net profit margin of -43.6% and declining EBIT and EBITDA margins, suggesting ongoing operational challenges. Revenue growth was robust at 36.6% from 2023 to 2024, indicating strong top-line growth, but the company needs to address its cost structure to improve profitability.
Balance Sheet
55
Neutral
The balance sheet of InnoCare Pharma Ltd. reveals a healthy equity position with a debt-to-equity ratio of 0.23 in 2024, suggesting financial stability and low leverage. The equity ratio of 71.5% also supports this stability. However, the company has been consistently operating at a net loss, impacting return on equity, which remains negative. Overall, while the balance sheet shows a strong capital structure, the company needs to improve profitability to enhance return metrics.
Cash Flow
30
Negative
InnoCare Pharma's cash flow statement highlights significant concerns. The company has not generated positive operating or free cash flow in recent years, with operating cash flow being zero in 2024. This situation poses a risk to the company's liquidity and operational sustainability. Although financing activities have supported cash positions, reliance on external financing is not sustainable long-term. Improvement in cash generation from operations is critical.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.01B738.54M625.40M1.04B1.36M
Gross Profit871.01M610.10M482.01M977.37M1.36M
EBITDA-463.49M-516.55M-808.28M16.23M-453.44M
Net Income-440.63M-631.26M-871.65M-66.68M-463.17M
Balance Sheet
Total Assets9.41B9.92B10.32B7.40B4.54B
Cash, Cash Equivalents and Short-Term Investments7.29B8.22B9.01B6.25B3.97B
Total Debt1.27B1.35B1.25B1.27B1.17B
Total Liabilities2.66B2.74B2.68B1.74B1.38B
Stockholders Equity6.73B7.15B7.60B5.60B3.10B
Cash Flow
Free Cash Flow-443.78M-926.00M-935.88M-11.00K-423.79M
Operating Cash Flow-365.55M-671.34M-565.55M167.06M-172.52M
Investing Cash Flow1.11B666.91M-1.73B-1.73B-1.11B
Financing Cash Flow-285.60M1.31M3.09B2.54B2.24B

InnoCare Pharma Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.56
Price Trends
50DMA
17.95
Negative
100DMA
14.98
Positive
200DMA
11.18
Positive
Market Momentum
MACD
-0.17
Positive
RSI
50.49
Neutral
STOCH
39.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9969, the sentiment is Positive. The current price of 17.56 is above the 20-day moving average (MA) of 17.37, below the 50-day MA of 17.95, and above the 200-day MA of 11.18, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 39.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9969.

InnoCare Pharma 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
42.20B47.4227.23%2.57%18.79%
55
Neutral
20.69B-72.04-20.82%964.40%65.90%
53
Neutral
11.68B-20.400.00%1219.19%25.15%
46
Neutral
20.24B-26.11-25.57%102.73%38.42%
45
Neutral
HK$26.25B-3.06%68.88%55.64%
45
Neutral
27.84B-19.21-153.46%-56.94%-190.36%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9969
InnoCare Pharma Ltd.
17.56
12.21
228.22%
HK:1952
Everest Medicines Ltd.
57.25
33.00
136.08%
HK:2162
Keymed Biosciences, Inc.
73.70
38.30
108.19%
HK:2171
CARsgen Therapeutics Holdings Ltd.
20.28
17.13
543.81%
HK:2696
Shanghai Henlius Biotech, Inc. Class H
77.65
54.65
237.61%
HK:6855
Ascentage Pharma Group International
75.30
36.70
95.08%

InnoCare Pharma Ltd. Corporate Events

InnoCare Pharma Announces Grant of Restricted Shares Under 2024 Incentive Scheme
Aug 20, 2025

InnoCare Pharma Ltd. has announced the grant of 2,467,550 Restricted Shares to 91 Incentive Participants as part of its 2024 RMB Share Incentive Scheme. This grant, representing approximately 0.14% of the company’s total issued shares, aims to incentivize key personnel and aligns with company and individual performance targets. The initiative is expected to bolster employee motivation and align interests with shareholders, potentially enhancing the company’s operational performance and market positioning.

The most recent analyst rating on (HK:9969) stock is a Buy with a HK$25.20 price target. To see the full list of analyst forecasts on InnoCare Pharma Ltd. stock, see the HK:9969 Stock Forecast page.

InnoCare Pharma Grants 210,000 RSUs to Key Employees Under 2023 Scheme
Aug 20, 2025

InnoCare Pharma Ltd. announced the grant of 210,000 Restricted Share Units (RSUs) under its 2023 Share Award Scheme to three employees, including a connected person of the company. This grant, representing approximately 0.01% of the company’s total shares, aims to incentivize key personnel through a combination of time-based and performance-based vesting conditions. The performance targets are aligned with the company’s corporate goals, such as operating revenue and clinical trial advancements, as well as individual performance metrics, reflecting InnoCare’s commitment to driving commercialization and research progress.

The most recent analyst rating on (HK:9969) stock is a Buy with a HK$25.20 price target. To see the full list of analyst forecasts on InnoCare Pharma Ltd. stock, see the HK:9969 Stock Forecast page.

InnoCare Pharma Sees Robust Revenue Growth Amidst Reduced Losses
Aug 19, 2025

InnoCare Pharma Ltd. reported a significant increase in revenue for the first half of 2025, with a 74.3% rise to RMB731.4 million compared to the same period in 2024. This growth was primarily driven by the strong sales performance of Orelabrutinib and licensing revenue from Prolium. Despite the increase in revenue, the company reported a loss of RMB35.6 million, although this was a substantial improvement from the previous year’s loss of RMB267.9 million. The financial results highlight the company’s expanding market presence and the growing acceptance of its products, particularly Orelabrutinib, which saw a 52.8% increase in sales due to expanded coverage and a higher number of patients treated.

The most recent analyst rating on (HK:9969) stock is a Buy with a HK$25.20 price target. To see the full list of analyst forecasts on InnoCare Pharma Ltd. stock, see the HK:9969 Stock Forecast page.

InnoCare Pharma Schedules Board Meeting for Interim Results
Aug 5, 2025

InnoCare Pharma Ltd. has announced that its board of directors will meet on August 19, 2025, to consider and approve the interim financial results for the first half of the year. This meeting could have significant implications for the company’s financial transparency and investor relations, potentially impacting its market position and stakeholder confidence.

The most recent analyst rating on (HK:9969) stock is a Buy with a HK$11.76 price target. To see the full list of analyst forecasts on InnoCare Pharma Ltd. stock, see the HK:9969 Stock Forecast page.

InnoCare Pharma Successfully Passes All Resolutions at AGM
Jun 20, 2025

InnoCare Pharma Ltd. announced that all proposed resolutions at its Annual General Meeting held on June 20, 2025, were passed by shareholders. The resolutions included approval of financial statements, annual and work reports, a profit distribution plan, and mandates for share allotment and repurchase. Additionally, several directors were re-elected, and the board was authorized to fix directors’ remuneration. This successful AGM reflects strong shareholder support and positions the company for continued operational and strategic initiatives.

The most recent analyst rating on (HK:9969) stock is a Buy with a HK$11.76 price target. To see the full list of analyst forecasts on InnoCare Pharma Ltd. stock, see the HK:9969 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 23, 2025