InnoCare Pharma Ltd. (9969) AI Stock Analysis

• Market Cap: HK$17.44B
• Dividend Yield: N/A
• Average Volume (3M): 17.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: 58.24%
• EPS Growth: 38.85%
• Country: HK
• Employees: 1,089
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.02
• Shares Outstanding: 1,496,284,200
• 10 Day Avg. Volume: 19,701,315
• 30 Day Avg. Volume: 17,452,168
• PEG Ratio: 0.74
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 9.63
• P/FCF Ratio: -21.90
• 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$19.60
• Price Target Upside: 67.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$12.00 ▲(2.83% Upside)

The score is driven primarily by improving fundamentals and a supportive balance sheet, offset by ongoing net losses and negative free cash flow. Technical indicators are mixed with a negative MACD and price below longer-term averages, and valuation remains weak due to the negative P/E and lack of dividend yield.

Positive Factors

High Gross Margin & Revenue Growth

Sustained revenue expansion with an ~88% gross margin signals durable pricing power and a favorable product mix. High gross margins provide recurring cushion to fund R&D and commercialization, improving the structural path to profitability as scale and adoption grow over months.

Supportive Balance Sheet

A substantial equity base (~7.3B) and low leverage (debt/equity ~0.25) give InnoCare meaningful financial flexibility. This reduces near-term refinancing risk and allows continued funding of clinical programs and commercialization without immediate pressure, a structural advantage for a biotech.

Improving Cash Burn Trend

Material improvement in cash burn versus 2023–2024 reflects tighter cost control and operational progress. A persistent trend of lower cash outflows reduces near-term funding needs, raising the probability of a cash-flow inflection within successive quarters if execution continues.

Negative Factors

Ongoing Net Losses and Cash Burn

A TTM net loss of -232.8M with negative operating and free cash flow means the business remains cash-burning. Persistent losses over multiple quarters necessitate external financing or equity issuance, increasing dilution risk and constraining long-term strategic flexibility.

Declining Free Cash Flow

TTM free cash flow fell ~26.3% versus the prior period, indicating weaker cash conversion despite some improvement in burn. Continued negative and declining FCF heightens the likelihood of future capital raises, which can dilute shareholders and limit reinvestment in growth initiatives.

Negative Return on Equity

A TTM ROE of about -3.4% shows the company is not generating returns on its equity base. If losses persist, book value erosion and impaired shareholder returns become structural issues, signaling inefficiency in capital use that could persist absent sustained profitability improvements.

InnoCare Pharma Ltd. Business Overview & Revenue Model

Company Description

InnoCare 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 Money

InnoCare 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

Revenue is growing strongly (+10.7%) and gross margin is very high (~88%), but profitability and cash generation remain weak (TTM net loss -232.8M; negative operating and free cash flow). The balance sheet is a strength (debt-to-equity ~0.25; sizable equity ~7.3B), yet continued losses and cash burn keep the overall financial profile moderate.

Income Statement

TTM (Trailing-Twelve-Months) revenue is growing strongly (+10.7%) and gross margin remains very high (~88%), indicating good pricing power on the current revenue base. Profitability, however, is still weak: TTM net loss is -232.8M with a negative net margin (~-16%), and EBITDA is still negative, even though results improved materially versus 2024 (annual net margin ~-44% and much larger operating losses). Overall, the trajectory is improving, but the business has not yet reached consistent earnings profitability.

Balance Sheet

The balance sheet looks supportive for a biotech profile, with sizable equity (TTM equity ~7.3B) and moderate leverage (debt-to-equity ~0.25). Total assets are substantial (~10.4B), and debt remains manageable relative to the capital base despite rising versus 2024. The key weakness is continued losses, reflected in negative return on equity (TTM ROE ~-3.4%), which can pressure book value over time if profitability does not normalize.

Cash Flow

Cash generation remains a constraint: TTM operating cash flow is negative (-95.1M) and free cash flow is also negative (-142.2M), with free cash flow down versus the prior period (TTM free cash flow growth -26.3%). That said, cash burn has improved significantly compared with 2023–2024, when operating and free cash flow were much more negative. The main risk is that ongoing negative free cash flow implies continued funding needs if the company does not turn cash-flow positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.01B	738.54M	625.40M	1.04B	1.36M
Gross Profit	1.26B	871.01M	610.10M	482.01M	977.37M	1.36M
EBITDA	-211.45M	-463.49M	-516.55M	-808.28M	16.23M	-556.92M
Net Income	-229.31M	-440.63M	-631.26M	-886.59M	-64.55M	-391.39M
Balance Sheet
Total Assets	9.52B	9.41B	9.92B	10.32B	7.40B	4.54B
Cash, Cash Equivalents and Short-Term Investments	7.02B	6.22B	8.22B	9.01B	6.25B	3.97B
Total Debt	1.67B	1.27B	1.35B	1.25B	1.27B	1.17B
Total Liabilities	2.85B	2.66B	2.74B	2.68B	1.74B	1.38B
Stockholders Equity	6.67B	6.73B	7.15B	7.60B	5.60B	3.10B
Cash Flow
Free Cash Flow	-141.12M	-443.78M	-926.00M	-935.88M	-11.00K	-423.79M
Operating Cash Flow	-95.23M	-365.55M	-671.34M	-565.55M	167.06M	-172.52M
Investing Cash Flow	-590.52M	1.11B	666.91M	-1.73B	-1.73B	-1.11B
Financing Cash Flow	114.62M	-285.60M	1.31M	3.09B	2.54B	2.24B

InnoCare Pharma Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9969, the sentiment is Negative. The current price of 11.67 is below the 20-day moving average (MA) of 12.54, below the 50-day MA of 13.34, and below the 200-day MA of 14.29, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 29.81 is Positive, neither overbought nor oversold. The STOCH value of 15.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9969.

InnoCare Pharma Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2696	66 Neutral	HK$31.90B	35.30	27.37%	―	2.57%	18.79%
9969	52 Neutral	HK$17.44B	-82.29	-3.36%	―	58.24%	38.85%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1952	45 Neutral	HK$14.32B	-18.15	-15.75%	―	102.73%	38.42%
2171	44 Neutral	HK$9.19B	-15.58	-42.46%	―	1219.19%	25.15%
6855	44 Neutral	HK$18.26B	-12.51	-161.12%	―	-56.94%	-190.36%
2162	41 Neutral	HK$16.21B	-54.55	-8.79%	―	964.40%	65.90%

InnoCare Pharma Ltd. Corporate Events

InnoCare Pharma Forecasts First Annual Profit in 2025 on Surging Drug Sales

InnoCare Pharma said it expects a sharp improvement in its 2025 financial performance, projecting operating revenue of about RMB2.37 billion, up roughly 134% from 2024, driven by rapid growth in drug sales, including a new first-line indication approval in April 2025 for its BTK inhibitor orelabrutinib to treat adult chronic lymphocytic leukemia and small lymphocytic lymphoma. The company anticipates turning profitable for the first time, with estimated net profit attributable to shareholders of around RMB633 million versus a RMB441 million loss in 2024, and net profit excluding non-recurring items of about RMB534 million compared with a RMB440 million loss a year earlier, marking a significant turnaround that underscores accelerating commercialization and could strengthen its competitive position in the oncology drug market.

The most recent analyst rating on (HK:9969) stock is a Hold with a HK$11.50 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 1.4 Million RSUs Under 2023 Share Award Scheme

InnoCare Pharma has granted 1.4 million restricted share units (RSUs), equivalent to about 0.08% of its issued share capital, to two employee participants under its 2023 Share Award Scheme, with a purchase price set well below the prevailing market prices of its Hong Kong and RMB shares. Of these, 800,000 RSUs will vest in four equal tranches over one to four years, while the remaining 600,000 RSUs are tied to performance-based vesting conditions linked to both corporate metrics such as operating revenue and the number of clinical trials, and individual performance evaluations, underscoring the company’s use of equity incentives to retain key staff, align employee interests with long-term commercialization and R&D goals, and potentially support its competitive positioning in the biopharma sector.

The most recent analyst rating on (HK:9969) stock is a Buy with a HK$23.60 price target. To see the full list of analyst forecasts on InnoCare Pharma Ltd. stock, see the HK:9969 Stock Forecast page.

InnoCare Pharma Advances Orelabrutinib with Positive SLE Trial Results

InnoCare Pharma Ltd. announced positive results from a Phase IIb clinical trial of orelabrutinib for systemic lupus erythematosus (SLE), leading to the approval of a Phase III trial. The Phase IIb trial demonstrated significant efficacy and safety, with orelabrutinib showing a statistically significant improvement in SLE response rates compared to placebo. The initiation of the Phase III trial marks a significant step in the development of orelabrutinib as a first-in-class oral BTK inhibitor for SLE, potentially enhancing InnoCare’s position in the autoimmune disease treatment market.

The most recent analyst rating on (HK:9969) stock is a Hold with a HK$19.60 price target. To see the full list of analyst forecasts on InnoCare Pharma Ltd. stock, see the HK:9969 Stock Forecast page.

InnoCare Pharma Gains Approval for Innovative Cancer Treatment in China

InnoCare Pharma Limited has received approval from the National Medical Products Administration for zurletrectinib, a second-generation pan-TRK inhibitor, for treating adult and adolescent patients with solid tumors harboring NTRK gene fusions in China. The drug demonstrated high efficacy and a favorable safety profile in clinical trials, offering a significant advancement over first-generation TRK inhibitors. This approval positions InnoCare as a key player in addressing unmet clinical needs in the oncology sector, particularly for tumors with NTRK gene fusions, which are present in over 26 types of tumors and affect approximately 6,500 new patients annually in China.

The most recent analyst rating on (HK:9969) stock is a Hold with a HK$19.60 price target. To see the full list of analyst forecasts on InnoCare Pharma Ltd. stock, see the HK:9969 Stock Forecast page.

InnoCare Pharma Releases Q3 2025 Financials and Updates Nomination Committee

InnoCare Pharma Ltd. has released its unaudited financial data for the third quarter of 2025, prepared according to Chinese accounting principles and intended for the STAR Market of the Shanghai Stock Exchange. Additionally, the company announced a change in the composition of its Nomination Committee, with Prof. Kunliang Guan joining and Ms. Lan Hu stepping down, to enhance corporate governance and diversity in response to recent amendments to the Corporate Governance Code.

The most recent analyst rating on (HK:9969) stock is a Sell with a HK$14.00 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 to Review Q3 Results

InnoCare Pharma Ltd. has announced a board meeting scheduled for November 13, 2025, to review and approve the company’s unaudited third-quarter results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial health and operational performance, potentially impacting its market position and stakeholder confidence.

The most recent analyst rating on (HK:9969) stock is a Sell with a HK$14.00 price target. To see the full list of analyst forecasts on InnoCare Pharma Ltd. stock, see the HK:9969 Stock Forecast page.