InnoCare Pharma Ltd. (9969) AI Stock Analysis

• Market Cap: HK$19.90B
• Dividend Yield: N/A
• Average Volume (3M): 20.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 33.63%
• EPS Growth: 31.50%
• Country: HK
• Employees: 1,089
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): 0.01
• Shares Outstanding: 1,496,284,200
• 10 Day Avg. Volume: 20,177,405
• 30 Day Avg. Volume: 20,152,058
• PEG Ratio: -0.02
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.04
• 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$11.95
• Price Target Upside: -10.69% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: HK$14.00 ▲(4.63%Upside)

The overall stock score of 57 for InnoCare Pharma Ltd. is primarily driven by strong technical indicators, suggesting positive market momentum. However, the company's financial performance and valuation are concerning due to ongoing losses and negative cash flow, which weigh down the score.

Positive Factors

Cash Position

InnoCare maintained a robust cash position of RMB7.8bn, providing ample capital for R&D initiatives.

Financial Performance

InnoCare reported net income of RMB14mn, underpinned by orelabrutinib’s strong sales and a US$8.75mn upfront payment from out-licensing.

Revenue Growth

InnoCare delivered solid results, with revenue reaching RMB381mn, supported by sustained uptake in MZL.

Negative Factors

Market Competition

Orelabrutinib remains the only BTK inhibitor approved and included in the NRDL for MZL in China, the second-largest subtype of NHL.

Product Dependency

Autoimmune disease pipeline to drive business growth with orelabrutinib showing robust sales growth and market share in CLL, MCL, and MZL.

InnoCare Pharma Ltd. Business Overview & Revenue Model

Company Description

InnoCare Pharma Ltd. (9969) is a leading biopharmaceutical company focused on discovering, developing, and commercializing innovative therapies for the treatment of cancer and autoimmune diseases. With a robust pipeline of drugs, InnoCare Pharma leverages cutting-edge science and technology to address unmet medical needs, primarily in the fields of oncology and immunology. The company is committed to improving patient outcomes through its core products and services, which include a range of biologics and small molecule drugs designed to target specific disease pathways.

How the Company Makes Money

InnoCare Pharma Ltd. generates revenue primarily through the sale of its pharmaceutical products. The company earns money by commercializing its proprietary drugs, which are developed internally and sometimes in collaboration with strategic partners. InnoCare also engages in out-licensing agreements and partnerships with other pharmaceutical companies, allowing them to expand the reach of their products and enter new markets. Additionally, the company may receive milestone payments and royalties from these collaborations, contributing to its revenue streams. InnoCare's focus on innovation and strategic alliances plays a significant role in its business model, enabling it to capitalize on its research and development efforts and bring new therapies to market.

InnoCare Pharma Ltd. Financial Statement Overview

Summary

InnoCare Pharma Ltd. shows strong revenue growth and a healthy balance sheet with low leverage, but struggles with profitability and cash flow generation. The negative net profit margin and lack of positive cash flow highlight significant operational challenges.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	738.54M	625.40M	1.04B	1.36M
Gross Profit	871.01M	610.10M	482.01M	977.37M	1.36M
EBITDA	-463.49M	-516.55M	-808.28M	16.23M	-453.44M
Net Income	-440.63M	-631.26M	-871.65M	-66.68M	-463.17M
Balance Sheet
Total Assets	9.41B	9.92B	10.32B	7.40B	4.54B
Cash, Cash Equivalents and Short-Term Investments	7.29B	8.22B	9.01B	6.25B	3.97B
Total Debt	1.27B	1.35B	1.25B	1.27B	1.17B
Total Liabilities	2.66B	2.74B	2.68B	1.74B	1.38B
Stockholders Equity	6.73B	7.15B	7.60B	5.60B	3.10B
Cash Flow
Free Cash Flow	-443.78M	-926.00M	-935.88M	-11.00K	-423.79M
Operating Cash Flow	-365.55M	-671.34M	-565.55M	167.06M	-172.52M
Investing Cash Flow	1.11B	666.91M	-1.73B	-1.73B	-1.11B
Financing Cash Flow	-285.60M	1.31M	3.09B	2.54B	2.24B

InnoCare Pharma Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 13.38 is above the 20-day moving average (MA) of 12.93, above the 50-day MA of 11.18, and above the 200-day MA of 7.91, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 38.85 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2696	76 Outperform	HK$27.31B	30.70	31.65%	―	4.23%	47.71%
9969	57 Neutral	HK$19.90B	―	-6.35%	―	33.63%	31.50%
2162	54 Neutral	HK$12.99B	―	-18.87%	―	16.35%	-49.63%
2171	53 Neutral	HK$13.30B	―	-55.68%	―	―	-4.33%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	16.99%	1.69%
1952	49 Neutral	HK$18.70B	―	-23.03%	―	461.36%	-16.43%
6855	48 Neutral	HK$26.76B	―	-253.12%	―	330.23%	59.68%

InnoCare Pharma Ltd. Corporate Events

InnoCare Pharma Successfully Passes All Resolutions at AGM

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.

InnoCare Pharma Gains NMPA Approval for Minjuvi in China

InnoCare Pharma Ltd. announced that the National Medical Products Administration (NMPA) in China has approved Minjuvi (tafasitamab) in combination with lenalidomide for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) who are not eligible for autologous stem cell transplant. This approval marks the first CD19 antibody approved for this indication in China, potentially enhancing InnoCare’s market presence in the region. The approval is expected to have a significant impact on the company’s operations and industry positioning, given the high incidence of DLBCL in China, which accounts for 45.8% of all non-Hodgkin lymphoma cases in the country.

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 Releases Unaudited Q1 2025 Financial Data

InnoCare Pharma Limited has released its unaudited financial data for the first quarter of 2025, prepared according to Chinese accounting principles and the STAR Market requirements of the Shanghai Stock Exchange. The announcement advises shareholders and potential investors to exercise caution when dealing with the company’s securities, as the data has not been reviewed by independent auditors.

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 Announces 2025 Annual General Meeting and Key Resolutions

InnoCare Pharma Ltd. has announced its upcoming annual general meeting scheduled for June 20, 2025, in Beijing, China. The meeting will address several key resolutions, including the approval of the 2024 financial statements, annual report, work report of the board of directors, and profit distribution plan. Additionally, the company seeks shareholder approval to authorize the directors to allot and issue new shares or securities convertible into shares, with limitations set by the Hong Kong Stock Exchange rules. This announcement could impact the company’s operational flexibility and shareholder value by potentially increasing the share capital.

InnoCare Pharma to Review Q1 2025 Financial Results

InnoCare Pharma Limited has announced a board meeting scheduled for May 13, 2025, to review and approve the company’s unaudited first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market position and stakeholder interests.

InnoCare Pharma’s Orelabrutinib Gains Approval for First-Line CLL/SLL Treatment in China

InnoCare Pharma Ltd. has announced that its core product, Orelabrutinib, has received approval from the China National Medical Products Administration for the first-line treatment of chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL). This approval marks a significant expansion of Orelabrutinib’s indications, which previously included treatments for relapsed and refractory CLL/SLL, mantle cell lymphoma, and marginal zone lymphoma. The inclusion of Orelabrutinib in the Chinese Society of Clinical Oncology’s guidelines as a Class I recommended therapy further strengthens its market position and potential impact on a broader patient population.