InnoCare Pharma Ltd. (9969) AI Stock Analysis

• Market Cap: HK$25.26B
• Dividend Yield: N/A
• Average Volume (3M): 17.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 68.88%
• EPS Growth: 55.64%
• Country: HK
• Employees: 1,089
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -0.02
• Shares Outstanding: 1,496,284,200
• 10 Day Avg. Volume: 21,423,613
• 30 Day Avg. Volume: 17,604,891
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$21.60
• Price Target Upside: 27.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: HK$19.00 ▲(12.43% Upside)

InnoCare Pharma Ltd.'s stock score is driven by strong technical analysis indicators, suggesting positive momentum, despite significant financial performance challenges. The lack of profitability and cash flow issues weigh heavily, but the bullish market trends provide some optimism.

Positive Factors

Financial Performance

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

Financial Stability

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

Product Approval

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

Revenue Growth

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

Negative Factors

Market Competition

Two TYK2 inhibitors, ICP-322 and ICP-488, show differentiated efficacy and competitive results in treating atopic dermatitis and psoriasis.

Market Dynamics

Autoimmune pipeline offers broad long-term upside, viewed as a key pillar of future growth alongside its oncology franchise.

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 potential with strong revenue growth and a healthy balance sheet, but profitability and cash flow issues are significant concerns. The negative net profit margin and lack of positive cash flow indicate financial 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: 16.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 16.9 is below the 20-day moving average (MA) of 18.25, above the 50-day MA of 16.74, and above the 200-day MA of 10.32, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 14.94 is Positive, 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	70 Outperform	HK$42.34B	47.57	27.37%	―	2.57%	18.79%
9969	61 Neutral	HK$25.26B	―	-3.06%	―	68.88%	55.64%
2162	55 Neutral	HK$19.41B	―	-8.79%	―	964.40%	65.90%
2171	53 Neutral	HK$13.31B	―	-42.47%	―	1219.19%	25.12%
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%
6855	48 Neutral	HK$30.67B	―	-161.12%	―	-56.94%	-190.36%
1952	46 Neutral	HK$22.30B	―	-15.75%	―	102.73%	38.42%

InnoCare Pharma Ltd. Corporate Events

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.

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.