InnoCare Pharma Ltd. (9969) AI Stock Analysis

• Market Cap: HK$21.45B
• Dividend Yield: N/A
• Average Volume (3M): 17.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 68.75%
• EPS Growth: 55.64%
• 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$23.75
• Price Target Upside: 69.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$14.00 ▲(0.00% Upside)

InnoCare Pharma Ltd.'s overall stock score is primarily impacted by its financial performance challenges, particularly in profitability and cash flow. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. The lack of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful product adoption, which can drive long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, providing the company with flexibility to invest in growth opportunities.

Gross Profit Margin

A high gross profit margin indicates effective cost management, enhancing the company's ability to invest in R&D and future growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues suggest operational inefficiencies, which could hinder the company's ability to sustain growth and invest in new projects.

Cash Flow Concerns

Lack of positive cash flow from operations poses a risk to liquidity and may limit the company's ability to fund its operations without external financing.

Net Loss Impact

Persistent net losses undermine financial performance, affecting investor confidence and the company's ability to generate shareholder value.

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

InnoCare Pharma Ltd. shows strong revenue growth and a healthy balance sheet with low leverage. However, profitability challenges and negative cash flow generation significantly impact its financial performance.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.01B	738.54M	625.40M	1.04B	1.36M
Gross Profit	1.17B	871.01M	610.10M	482.01M	977.37M	1.36M
EBITDA	-277.98M	-463.49M	-516.55M	-808.28M	16.23M	-556.92M
Net Income	-208.88M	-440.63M	-631.26M	-886.59M	-64.55M	-391.39M
Balance Sheet
Total Assets	9.36B	9.41B	9.92B	10.32B	7.40B	4.54B
Cash, Cash Equivalents and Short-Term Investments	7.06B	6.22B	8.22B	9.01B	6.25B	3.97B
Total Debt	1.54B	1.27B	1.35B	1.25B	1.27B	1.17B
Total Liabilities	2.65B	2.66B	2.74B	2.68B	1.74B	1.38B
Stockholders Equity	6.70B	6.73B	7.15B	7.60B	5.60B	3.10B
Cash Flow
Free Cash Flow	-192.86M	-443.78M	-926.00M	-935.88M	-11.00K	-423.79M
Operating Cash Flow	-144.84M	-365.55M	-671.34M	-565.55M	167.06M	-172.52M
Investing Cash Flow	1.29B	1.11B	666.91M	-1.73B	-1.73B	-1.11B
Financing Cash Flow	-224.70M	-285.60M	1.31M	3.09B	2.54B	2.24B

InnoCare Pharma Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 14 is below the 20-day moving average (MA) of 14.22, below the 50-day MA of 16.25, and above the 200-day MA of 12.66, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 39.38 is Neutral, neither overbought nor oversold. The STOCH value of 49.56 is Neutral, 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	61 Neutral	HK$34.13B	38.35	27.37%	―	2.57%	18.79%
2171	53 Neutral	HK$9.65B	-16.79	-42.46%	―	1219.19%	25.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6855	45 Neutral	HK$24.44B	-16.84	-161.12%	―	-56.94%	-190.36%
1952	41 Neutral	HK$15.99B	-20.63	-15.75%	―	102.73%	38.42%
2162	41 Neutral	HK$16.14B	―	-8.79%	―	964.40%	65.90%
9969	40 Underperform	HK$21.45B	-111.85	-3.06%	―	68.75%	55.64%

InnoCare Pharma Ltd. Corporate Events

InnoCare Pharma Announces Strategic Collaboration with Zenas BioPharma

InnoCare Pharma Ltd. has announced a global strategic collaboration and license agreement with Zenas BioPharma for the development, manufacture, and commercialization of orelabrutinib and two other preclinical assets. This agreement grants Zenas exclusive rights in specific fields and territories, with InnoCare retaining certain rights. The deal, potentially exceeding $2 billion, includes upfront and milestone payments, along with royalties, indicating a significant impact on InnoCare’s operations and market positioning.

The most recent analyst rating on (HK:9969) stock is a Hold with a HK$16.50 price target. To see the full list of analyst forecasts on InnoCare Pharma Ltd. stock, see the HK:9969 Stock Forecast page.

InnoCare Pharma Announces Grant of Restricted Shares Under 2024 Incentive Scheme

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

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

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

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.