GNI Group (2160) AI Stock Analysis

• Market Cap: €124.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 108.8
• Beta (1Y): 1.47
• Revenue Growth: -17.18%
• EPS Growth: -108.99%
• Country: JP
• Employees: 867
• Sector: Industrials
• Sector Strength: 90
• Industry: Biotechnology
• EPS (TTM): -10.57
• Shares Outstanding: 50,526,943
• 10 Day Avg. Volume: 1,532,740
• 30 Day Avg. Volume: 1,488,396
• PEG Ratio: -1.39
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.90
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥2,540.00 ▲( 2.79% Upside)

GNI Group's stock receives a score of 64, driven by strong financial performance and technical indicators suggesting short-term strength. However, high valuation metrics and cash flow challenges present significant risks. The stock may appeal to growth-oriented investors, but caution is advised due to potential overvaluation and liquidity concerns.

GNI Group Business Overview & Revenue Model

Company Description

GNI Group Ltd. engages in the research, development, manufacture, and sale of pharmaceutical drugs and traditional Chinese medicines in Japan and internationally. It provides Etuary for the treatment of idiopathic pulmonary fibrosis. The company is also developing Etuary, which is in Phase III clinical trial for the treatment of connective tissue associated interstitial lung disease; and in clinical trial phase II and pre-phase III clinical trial pilot study for the treatment of radiation pneumonitis, as well as for the treatment of diabetic nephropathy. In addition, it is involved in developing F351, which is in Phase II clinical trial for the treatment of liver fibrosis; and F573 that is in pre-clinical phase for the treatment of acute on chronic liver failure, as well as Tamibarotene for the treatment of acute promyelocytic leukemia. GNI Group Ltd. was incorporated in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

GNI Group makes money through the development and sale of pharmaceutical products, primarily targeting respiratory diseases. Its revenue model is centered on the commercialization of its flagship product, Etuary®, which is distributed in key markets. The company collaborates with pharmaceutical and research partners to enhance its product offerings and expand market reach. Additionally, GNI Group invests in R&D to develop new pipeline products and secure revenue through licensing agreements, partnerships, and potential milestone payments from collaborators.

GNI Group Financial Statement Overview

Summary

GNI Group exhibits strong revenue growth and profitability at the gross level, supported by a stable balance sheet with low leverage. However, recent declines in net income and cash flow inefficiencies pose potential risks. Ensuring consistent cash generation and managing liquidity will be crucial for maintaining financial health.

Income Statement

The company has shown a strong revenue growth trajectory over the years, particularly from 2020 to 2023, with a slight dip in 2024. Gross profit margin remains high, indicating efficient cost management, however, the net profit margin has shown volatility, with a notable decrease in net income in 2024. EBIT and EBITDA margins are healthy, although there was a drop in EBIT margin from 2021 to 2024.

Balance Sheet

The balance sheet reflects a robust equity base with a strong equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting low financial leverage, which reduces risk. However, there is a significant cash reserve, which is declining, indicating potential liquidity management challenges.

Cash Flow

Cash flow from operations has been inconsistent, with a negative operating cash flow reported in 2024. The free cash flow has also fluctuated, turning negative in 2024, which might be a concern for long-term sustainability. The operating cash flow to net income ratio has deteriorated, indicating inefficiencies in cash generation from operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.61B	26.01B	17.42B	12.69B	9.77B
	Gross Profit
18.04B	22.43B	14.74B	11.09B	8.23B
	EBIT
1.40B	13.11B	1.38B	1.62B	1.87B
	EBITDA
2.39B	14.49B	2.16B	2.14B	2.19B
	Net Income Common Stockholders
977.66M	8.09B	-868.25M	55.24M	1.26B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.12B	23.15B	11.25B	14.36B	10.34B
	Total Assets
71.94B	62.39B	33.91B	30.30B	23.22B
	Total Debt
7.21B	3.70B	537.36M	1.13B	1.75B
	Net Debt
-2.91B	-17.93B	-10.51B	-13.23B	-8.58B
	Total Liabilities
32.07B	26.34B	14.10B	11.03B	10.45B
	Stockholders Equity
36.45B	33.79B	20.97B	18.86B	11.00B
Cash Flow		Free Cash Flow
-3.69B	4.47B	-1.55B	-142.13M	1.02B
	Operating Cash Flow
-3.16B	6.55B	393.32M	552.27M	1.38B
	Investing Cash Flow
-10.36B	-6.84B	-4.12B	-260.64M	570.21M
	Financing Cash Flow
694.16M	10.69B	-646.33M	2.85B	801.12M

GNI Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2471.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2160, the sentiment is Negative. The current price of 2471 is above the 20-day moving average (MA) of 2395.80, above the 50-day MA of 2216.46, and below the 200-day MA of 2698.05, indicating a neutral trend. The MACD of 91.32 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2160.

GNI Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
2160	64 Neutral	€124.85B	108.76	-2.52%	―	-17.18%	-108.99%
PPTDF		$1.56B	18.55	29.98%	―	―	―
SNBIF		$1.64B	―	-123.63%	―	―	―
SOLTF		$505.19M	―	-3.36%	―	―	―
4974	51 Neutral	¥92.48B	88.84		2.22%	-9.69%	-103.31%
4593	49 Neutral	¥35.51B	―		―	374.19%	35.53%

GNI Group Corporate Events

GNI Group Reports Decline in Q1 FY2025 Financial Results

GNI Group Ltd. reported a decrease in revenue and profits for Q1 FY2025 compared to the same period last year, with revenue dropping by 10.6% and a significant decline in profits. The financial results indicate challenges in the company’s operations, impacting its market position and potentially affecting stakeholder confidence.

The most recent analyst rating on (JP:2160) stock is a Buy with a Yen3700.00 price target. To see the full list of analyst forecasts on GNI Group stock, see the JP:2160 Stock Forecast page.

GNI Group Confirms NDA Timeline for Hydronidone

GNI Group Ltd. announced that its subsidiary, Gyre Therapeutics, Inc., has presented a timeline for the New Drug Application submission for Hydronidone (F351) in the PRC, expected in the second quarter of 2025. The company plans to receive topline data from the Phase 3 clinical trial during this period, with further data analysis and NDA filing to follow, maintaining their previously stated timeline.

GNI Group Issues Stock Options Tied to Drug Approval Milestone

GNI Group Ltd. has announced the issuance of stock acquisition rights to its directors and executive officers, contingent upon the approval of a New Drug Application in China for F351, a treatment targeting liver fibrosis caused by chronic hepatitis B. This strategic move is expected to significantly boost the company’s corporate and stock value, facilitate global expansion, and enhance international credibility, aligning with the company’s ambition to transform into a global pharmaceutical company and benefit stakeholders.

GNI Group Projects Record Sales and Profits Amid U.S.-China Tariff Concerns

GNI Group has announced its business outlook for 2025, highlighting record-high sales and operating profits in its pharma segment, driven by new drug introductions and a recovery from the previous year. The company expects minimal impact from U.S.-China trade tariffs due to its established operations in China. In the drug discovery segment, despite the U.S.-China tariff conflicts, the company forecasts a strong operating profit due to other income from accrued interest elimination. The med-tech segment anticipates potential tariff impacts but plans to mitigate these through price increases, aiming for record sales and profits in 2025.

GNI Group Amends FY2024 Financial Results Following Tax Review

GNI Group Ltd. announced an amendment to its Consolidated Financial Results for FY2024 due to a tax review of its subsidiary, GNI USA, Inc. The corrections involve adjustments to profit and loss figures, reflecting a minor improvement in profit attributable to owners of the parent and comprehensive income. These changes highlight the company’s ongoing financial adjustments and could impact stakeholder perceptions of its financial health.