RemeGen Co. Ltd. Class H (9995) AI Stock Analysis

• Market Cap: HK$47.22B
• Dividend Yield: N/A
• Average Volume (3M): 6.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: 46.14%
• EPS Growth: 39.56%
• Country: HK
• Employees: 2,999
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.20
• Shares Outstanding: 208,581,240
• 10 Day Avg. Volume: 6,644,676
• 30 Day Avg. Volume: 6,343,592
• PEG Ratio: 1.98
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 4.24
• P/FCF Ratio: -5.27
• 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$99.82
• Price Target Upside: 29.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: HK$74.00 ▼(-4.33% Downside)

RemeGen Co. Ltd. faces significant challenges in profitability and cash flow management, which heavily impact its financial performance score. The technical analysis indicates bearish momentum, further weighing down the overall score. The negative P/E ratio and lack of dividend yield result in a low valuation score, reflecting the company's financial struggles.

Positive Factors

Revenue Growth

The consistent revenue growth indicates an expanding market presence and successful product adoption, supporting long-term business sustainability.

Strong Gross Profit Margin

A high gross profit margin suggests efficient production and pricing strategies, which can provide a buffer against cost fluctuations and support profitability.

Reduced Leverage

Reduced leverage enhances financial stability and flexibility, allowing the company to better manage its capital structure and invest in growth opportunities.

Negative Factors

Profitability Challenges

Ongoing profitability issues suggest operational inefficiencies or high costs, which could hinder long-term financial health and investment capacity.

Negative Cash Flow

Negative cash flow growth indicates potential liquidity issues, which could limit the company's ability to fund operations and invest in future growth.

Negative Return on Equity

A negative return on equity highlights the company's inability to generate sufficient returns on shareholders' investments, affecting investor confidence and capital raising ability.

RemeGen Co. Ltd. Class H Business Overview & Revenue Model

Company Description

RemeGen Co., Ltd., a biopharmaceutical company, engages in the discovery, development, and commercialization of biologics for the treatment of autoimmune, oncology, and ophthalmic diseases with unmet medical needs in Mainland China and the United States. The company offers Telitacicept (RC18) for use in the treatment of systemic lupus erythematosus an autoimmune disease and Disitamab Vedotin (RC48) for use in the treatment of various cancers. Its products in various stages of development include RC18, which is under phase III clinical trials for the treatment of neuromyelitis optica spectrum disorder and rheumatoid arthritis, and phase II clinical trials for the treatment of IgA nephritis, Sjögren's syndrome, multiple sclerosis, and myasthenia gravis; RC28, which has completed Phase 1 clinical trials for use in the treatment of wet age-related macular degeneration, diabetic macular edema, and diabetic retinopathy; RC98, a PD-L1 monoclonal antibody for the treatment of solid tumors and is under Phase I clinical trial; RC88, which is in Phase 1 clinical trials for use in the treatment of mesothelioma, bile duct carcinoma, pancreatic cancer, ovarian carcinoma, lung adenocarcinoma, and other solid tumors, as well as lung and urothelial cancer; and RC108 that is in Phase 1 clinical trials to treat various solid tumors. In addition, the company's products under pre-clinical development include RC118, RC138, RC148, RC158, RC168, RC178, RC188, and RC198 to treat various solid tumors; and RC208, RC218, and RC228 to treat ophthalmic diseases. RemeGen Co., Ltd. was incorporated in 2008 and is headquartered in Yantai, the People's Republic of China.

How the Company Makes Money

RemeGen generates revenue primarily through the commercialization of its therapeutic products, which include proprietary drugs that have received regulatory approval for use in treating various cancers and autoimmune conditions. The company earns money through direct sales of its products to hospitals and healthcare providers, as well as through licensing agreements and collaborations with other pharmaceutical companies. Significant partnerships and collaborations with global healthcare organizations help to enhance its market reach and distribution capabilities, contributing positively to its earnings. Additionally, RemeGen may receive milestone payments and royalties from its partners based on the performance of co-developed products, further diversifying its revenue streams.

RemeGen Co. Ltd. Class H Financial Statement Overview

Summary

RemeGen Co. Ltd. faces significant challenges in achieving profitability, with persistent negative margins and rising leverage. Despite promising revenue growth, the company struggles with cash flow and balance sheet weaknesses, impacting its financial stability.

Income Statement

RemeGen Co. Ltd. has shown substantial revenue growth from 2022 to 2024, with a 59.5% increase in 2024. However, persistent negative EBIT and net income margins highlight ongoing profitability challenges, with a gross profit margin of 79.8% in 2024 offset by significant operating losses.

Balance Sheet

The company maintains a high debt-to-equity ratio, increasing from 0.37 in 2023 to 1.34 in 2024, indicating rising leverage. The equity ratio has decreased to 36.1% in 2024 from 62.2% in 2023, reflecting a more leveraged balance sheet. Additionally, negative ROE suggests continued profitability issues.

Cash Flow

RemeGen's cash flow statement reveals negative free cash flow throughout the years, with a 41.4% improvement in 2024. The operating cash flow to net income ratio is negative, indicating insufficient cash generation from operations to cover losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.28B	1.72B	1.08B	767.77M	1.42B	0.00
Gross Profit	1.90B	1.37B	822.99M	497.84M	1.36B	0.00
EBITDA	-697.57M	-1.19B	-1.25B	-805.70M	402.05M	-661.56M
Net Income	-957.01M	-1.47B	-1.51B	-997.84M	276.26M	-727.09M
Balance Sheet
Total Assets	6.53B	5.50B	5.53B	6.02B	4.16B	4.12B
Cash, Cash Equivalents and Short-Term Investments	1.29B	759.53M	709.07M	2.19B	1.76B	2.77B
Total Debt	2.39B	2.67B	1.26B	165.03M	102.78M	197.69M
Total Liabilities	4.00B	3.51B	2.09B	1.04B	712.79M	523.07M
Stockholders Equity	2.54B	1.99B	3.44B	4.98B	3.45B	3.59B
Cash Flow
Free Cash Flow	-288.82M	-1.38B	-2.35B	-2.02B	-353.71M	-1.14B
Operating Cash Flow	-21.57M	-1.11B	-1.50B	-1.26B	263.63M	-660.08M
Investing Cash Flow	-119.50M	-248.24M	-817.65M	-841.56M	-637.95M	-479.06M
Financing Cash Flow	526.64M	1.39B	978.31M	2.43B	-626.90M	3.90B

RemeGen Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.35
• 50DMA: Negative
• 100DMA: Negative
• 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:9995, the sentiment is Negative. The current price of 77.35 is below the 20-day moving average (MA) of 81.11, below the 50-day MA of 84.50, and above the 200-day MA of 66.66, indicating a neutral trend. The MACD of -2.78 indicates Positive momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 26.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9995.

RemeGen Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2696	66 Neutral	HK$33.15B	36.70	27.37%	―	2.57%	18.79%
1548	60 Neutral	HK$28.86B	-19.96	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9688	42 Neutral	HK$15.23B	-9.53	-30.41%	―	23.87%	30.08%
9995	40 Neutral	HK$47.22B	-40.26	-39.64%	―	46.14%	39.56%
1877	38 Underperform	HK$35.68B	-21.99	-15.06%	―	38.56%	48.26%

RemeGen Co. Ltd. Class H Corporate Events

RemeGen Co., Ltd. Approves Key Resolutions at 2025 EGM

RemeGen Co., Ltd. recently held its 2025 third extraordinary general meeting (EGM) where key resolutions were passed. The meeting saw a significant turnout with 47.58% of shares represented. Key resolutions included the approval of expected day-to-day related party transactions for 2026 to 2028 and amendments to several governance policies. These decisions are poised to influence the company’s operational strategies and governance structure, potentially impacting its market position and stakeholder relations.

RemeGen Co., Ltd. Announces 2025 Third Extraordinary General Meeting

RemeGen Co., Ltd. has announced the convening of its 2025 third extraordinary general meeting (EGM) scheduled for December 2, 2025. The meeting will address resolutions concerning related party transactions for 2026 to 2028 and amendments to several governance policies, which could impact the company’s operational and strategic framework.

RemeGen Co., Ltd. Engages in Strategic Wealth Management Transaction

RemeGen Co., Ltd. has announced a discloseable transaction involving the purchase of a principal-guaranteed wealth management product worth RMB400 million from SPDB Yantai Branch. This transaction, along with a prior agreement made in October 2025, is part of the company’s strategy to utilize idle self-owned funds for cash management, reflecting a cautious approach to financial management amidst market fluctuations. The purchase is subject to reporting and announcement requirements under the Hong Kong Listing Rules due to the aggregated transaction value exceeding 5% of the applicable percentage ratios.

RemeGen Co., Ltd. Releases 2025 Q3 Unaudited Financial Report

RemeGen Co., Ltd. has released its unaudited 2025 third quarterly report, prepared according to Chinese accounting principles and the STAR Market requirements of the Shanghai Stock Exchange. The report, which has been reviewed by the audit committee but not by independent auditors, emphasizes the company’s commitment to transparency and accuracy in its financial disclosures, advising shareholders and potential investors to exercise caution when dealing with its securities.

RemeGen Co., Ltd. Renews Key Connected Transactions and Adjusts Leasing Agreements

RemeGen Co., Ltd. has announced the renewal of several connected transactions, including the MabPlex Master Service Agreement and the Materials Purchase Framework Agreement, extending their terms from 2026 to 2028. These transactions, which involve key stakeholders such as MabPlex and RC Pharma, are crucial for the company’s continued operations and strategic partnerships. Additionally, the company plans to adjust its leasing agreements by increasing equipment leases and reducing building and apartment leases, reflecting its business expansion and changing demand.

RemeGen Co., Ltd. Schedules Board Meeting to Review Q3 Results

RemeGen Co., Ltd. has announced that its board of directors will convene on October 30, 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 performance and strategic direction, potentially impacting its market position and stakeholder interests.

RemeGen Co., Ltd. Engages in Strategic Cash Management with SPDB Wealth Products

RemeGen Co., Ltd. has announced a discloseable transaction involving the purchase of wealth management products from SPDB Yantai Branch, utilizing idle self-owned funds and raised proceeds. The transaction involves a total investment of RMB500 million, with the aim of optimizing cash management and potentially enhancing financial returns through principal-guaranteed products linked to the EUR-USD exchange rate. This move is subject to reporting and announcement requirements under the Hong Kong Listing Rules, reflecting the company’s strategic financial management efforts.