GNI Group (2160) AI Stock Analysis

• Market Cap: ¥141.87B
• Dividend Yield: N/A
• Average Volume (3M): 969.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 13.78%
• EPS Growth: -110.02%
• Country: JP
• Employees: 867
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 8.54
• Shares Outstanding: 55,682,068
• 10 Day Avg. Volume: 1,104,200
• 30 Day Avg. Volume: 969,156
• PEG Ratio: -2.00
• Price to Book (P/B): 4.67
• Price to Sales (P/S): 7.21
• P/FCF Ratio: -46.18
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥2,640.00 ▲(15.28% Upside)

The score is held back primarily by weak profitability and negative cash flows, partly offset by low leverage on the balance sheet and modest revenue growth. Technical indicators are broadly neutral-to-weak, and valuation is constrained by losses (negative P/E) with no dividend support.

Positive Factors

Low Leverage

A low debt-to-equity ratio implies conservative leverage, giving the company financial flexibility to fund R&D, clinical programs or setbacks without heavy interest burdens. This reduces near-term refinancing risk and supports strategic choices over the next several months.

Healthy Capital Structure

A healthy equity ratio signals a solid capital base that can absorb operational volatility common in biotech. It improves resilience to cash-flow swings, supports potential fundraising or partnership negotiations, and helps preserve optionality for multi-quarter development timelines.

Modest Revenue Growth

Consistent top-line growth, even if modest, indicates underlying commercial traction or expanding program revenue. Over a multi-month horizon this supports scaling opportunities and provides a foundation for future margin recovery if operating efficiency improves.

Negative Factors

Negative Cash Flows

Sustained negative operating and free cash flow erodes runway and forces reliance on external financing or asset sales. This constrains the firm's ability to fund trials or commercialization internally and raises dilution or liquidity risk over the coming quarters.

Declining Profitability

Negative EBIT and net margins reflect structural operational challenges and cost intensity relative to revenues. Without meaningful cost base changes or revenue acceleration, profitability is unlikely to normalize, limiting sustainable free cash generation over months ahead.

Negative Return on Equity

A negative ROE indicates the company is currently destroying shareholder value and deploying equity inefficiently. This metric undermines investor confidence and may raise the cost or reduce availability of equity financing needed to support long-term programs.

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 generates revenue primarily through the sale of its biopharmaceutical products and services, including the production of active pharmaceutical ingredients (APIs) for various therapeutic areas. The company's revenue model is bolstered by long-term contracts and collaborations with major pharmaceutical companies, which provide a steady stream of income. Additionally, GNI Group benefits from research and development partnerships that enhance its product offerings and market reach. The company may also earn revenue from licensing agreements and royalties associated with its proprietary technologies and innovations in the biotech field.

GNI Group Financial Statement Overview

Summary

Financials are pressured by declining profitability (negative EBIT and net income margins) and negative operating/free cash flow, despite modest TTM revenue growth (6.82%) and a relatively solid balance sheet with low leverage (debt-to-equity 0.14).

Income Statement

The income statement shows a mixed performance. The TTM data indicates a decline in profitability with negative EBIT and net income margins, suggesting operational challenges. However, there is a positive revenue growth rate of 6.82% TTM, indicating some top-line growth. Historical data shows fluctuating margins, with a significant drop in net profit margin from 31.12% in 2023 to negative in the TTM period.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.14 TTM, indicating conservative leverage. However, the return on equity has turned negative in the TTM period, highlighting inefficiencies in generating returns from equity. The equity ratio remains healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals challenges with negative operating and free cash flows in the TTM period, indicating liquidity issues. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, suggesting operational cash flow is not supporting net income effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.78B	23.61B	26.01B	17.42B	12.69B	9.77B
Gross Profit	18.74B	18.04B	22.43B	14.74B	11.09B	8.23B
EBITDA	327.64M	2.39B	14.49B	2.16B	2.14B	2.19B
Net Income	-823.42M	977.66M	8.09B	388.82M	1.07B	1.26B
Balance Sheet
Total Assets	82.60B	71.94B	62.39B	33.91B	30.30B	23.22B
Cash, Cash Equivalents and Short-Term Investments	22.78B	12.93B	23.15B	11.25B	14.36B	10.34B
Total Debt	4.97B	7.21B	3.70B	537.36M	1.13B	1.75B
Total Liabilities	30.06B	32.23B	26.34B	14.10B	11.03B	10.45B
Stockholders Equity	50.05B	36.45B	33.79B	20.97B	18.86B	11.00B
Cash Flow
Free Cash Flow	-2.16B	-3.69B	4.47B	-1.55B	-142.13M	1.02B
Operating Cash Flow	-1.81B	-3.16B	6.55B	393.32M	552.27M	1.38B
Investing Cash Flow	-352.08M	-10.36B	-6.84B	-4.12B	-260.64M	570.21M
Financing Cash Flow	10.20B	694.16M	10.69B	-646.33M	2.85B	801.12M

GNI Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2290.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2160, the sentiment is Positive. The current price of 2290 is below the 20-day moving average (MA) of 2540.85, below the 50-day MA of 2463.92, and below the 200-day MA of 2721.16, indicating a neutral trend. The MACD of 34.91 indicates Positive momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 14.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2160.

GNI Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4587	51 Neutral	¥203.05B	-34.77	-10.16%	―	-62.47%	-134.06%
2160	47 Neutral	¥141.87B	-172.65	-1.81%	―	13.78%	-110.02%
4974	47 Neutral	¥97.78B	-15.32	―	2.18%	-0.16%	-802.20%
4593	45 Neutral	¥44.21B	-9.72	―	―	-82.33%	47.73%
4592	42 Neutral	¥144.27B	-38.31	-636.97%	―	―	-12.69%
4565	40 Neutral	¥73.48B	-11.91	-9.05%	―	-1.96%	-64.18%

GNI Group Corporate Events

GNI Group Slashes 2025 Profit Outlook as Cullgen Listing Is Delayed and Impairment Losses Loom

GNI Group has sharply revised its full-year 2025 consolidated earnings forecast, now projecting lower revenue of ¥26.8 billion and a swing from a previously expected substantial profit to a net loss, driven mainly by the deferral of the planned NASDAQ listing of core biotech subsidiary Cullgen and the exclusion of an anticipated large listing gain. The company will also recognize an impairment loss of ¥468 million on goodwill, intangible and fixed assets tied to several subsidiaries, while Cullgen’s full-year operating loss will remain fully consolidated instead of shifting to equity-method accounting, further pressuring earnings even as ETUARY® and the Medtech unit continue to post record-high revenues, implying a near-term hit to profitability and equity story despite ongoing operational growth in its core businesses and continued pursuit of Cullgen’s listing.

The most recent analyst rating on (JP:2160) stock is a Hold with a Yen2406.00 price target. To see the full list of analyst forecasts on GNI Group stock, see the JP:2160 Stock Forecast page.

GNI Group Makes Dental Lab ZOO LABO a Consolidated Subsidiary to Bolster Japan Medtech Base

GNI Group has acquired all shares of dental laboratory operator ZOO LABO, Inc., converting it into a consolidated subsidiary as of 29 December 2025, in a move to strengthen and expand its business base in Japan beyond headquarters functions. By integrating ZOO LABO’s CAD/CAM-driven dental prosthetics manufacturing with its existing Medtech capabilities and dental-use bone materials from Berkeley Advanced Biomaterials, GNI aims to accelerate digitalization in the dental field, create group synergies and enhance its medium- to long-term earnings, though the immediate impact on fiscal 2025 results is expected to be limited, with consolidation of ZOO LABO’s financials beginning in 2026.

The most recent analyst rating on (JP:2160) stock is a Hold with a Yen2443.00 price target. To see the full list of analyst forecasts on GNI Group stock, see the JP:2160 Stock Forecast page.

GNI Subsidiary Cullgen to Showcase Advancing Pipeline at J.P. Morgan Healthcare Conference

GNI Group’s U.S.-based consolidated subsidiary Cullgen Inc. will participate in the 44th Annual J.P. Morgan Healthcare Conference in San Francisco, one of the industry’s most prominent investor events that convenes global healthcare executives and institutional investors. Alongside this appearance, Cullgen has published an updated corporate presentation outlining key pipeline progress, including plans to start a Phase 2 clinical trial in the second quarter of 2026 for its novel non-opioid pain candidate CG001419 and the advancement of a new targeted protein degrader program for inflammatory diseases into IND-enabling studies, developments that underscore the group’s push to expand its clinical-stage portfolio and raise its profile with international investors.

The most recent analyst rating on (JP:2160) stock is a Hold with a Yen2443.00 price target. To see the full list of analyst forecasts on GNI Group stock, see the JP:2160 Stock Forecast page.

GNI Group’s F351 Secures Path Toward Conditional Approval and Priority Review in China

GNI Group announced that its subsidiary Gyre Therapeutics has completed a Pre-New Drug Application meeting with China’s Center for Drug Evaluation regarding F351, confirming that an NDA submission via the conditional approval pathway is acceptable and that the drug may qualify for Priority Review. F351, already designated a Breakthrough Therapy by Chinese regulators, is now positioned for an NDA filing in the first half of 2026, with Gyre preparing a confirmatory clinical trial to support the potential transition from conditional to full approval, a step that could accelerate time to market and strengthen the company’s position in the hepatology drug space in China.

The most recent analyst rating on (JP:2160) stock is a Hold with a Yen2311.00 price target. To see the full list of analyst forecasts on GNI Group stock, see the JP:2160 Stock Forecast page.

GNI Group Exits Governance Partners ASIA Fund and Brings Key Holding On-Balance Sheet

GNI Group has decided to withdraw from Governance Partners ASIA Limited Partnership, a fund it had treated as a consolidated subsidiary, ending its equity relationship and removing the vehicle from its scope of consolidation. The move is part of a broader effort to streamline investment management and review the group’s ownership structure, with 4 million shares of Japan Asia Investment Co., Ltd. that were held by the fund to be distributed in kind so that GNI Group will hold them directly, a change the company expects will have only an immaterial impact on its fiscal 2025 consolidated results.

The most recent analyst rating on (JP:2160) stock is a Hold with a Yen2311.00 price target. To see the full list of analyst forecasts on GNI Group stock, see the JP:2160 Stock Forecast page.

GNI Subsidiary Cullgen and Pulmatrix Relax Merger Terms to Seek Strategic Alternatives

GNI Group announced that its major subsidiary Cullgen Inc. and U.S.-listed Pulmatrix, Inc. have mutually waived the “no solicitation” clause in their reverse merger agreement intended to facilitate Cullgen’s Nasdaq listing. The change allows both parties to keep pursuing regulatory approval for the merger from the China Securities Regulatory Commission while simultaneously exploring alternative strategic transactions that could be more advantageous, signaling flexibility in dealmaking and potential changes to Cullgen’s route to international capital markets if CSRC approval continues to be delayed.

The most recent analyst rating on (JP:2160) stock is a Hold with a Yen2311.00 price target. To see the full list of analyst forecasts on GNI Group stock, see the JP:2160 Stock Forecast page.

GNI Group’s Subsidiary Reports Positive Phase 1 Trial Results for Non-Opioid Pain Treatment

GNI Group’s subsidiary, Cullgen Inc., has successfully completed a Phase 1 clinical trial for CG001419, a promising non-opioid pain treatment. The trial showed that the drug was well tolerated without serious adverse effects, paving the way for a Phase 2 trial in the U.S. in 2026, potentially positioning the company as a leader in non-opioid analgesics.

The most recent analyst rating on (JP:2160) stock is a Hold with a Yen2311.00 price target. To see the full list of analyst forecasts on GNI Group stock, see the JP:2160 Stock Forecast page.

GNI Group Reports Q3 FY2025 Financial Results: Revenue Up, Profitability Down

GNI Group Ltd. reported its consolidated financial results for the third quarter of fiscal year 2025, showing a revenue increase of 12.6% year-on-year to 19,357 million yen. However, the company faced operating and pre-tax losses, with a notable decline in profit attributable to owners of the parent. Despite the revenue growth, the financial results indicate challenges in profitability, which may impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (JP:2160) stock is a Hold with a Yen2291.00 price target. To see the full list of analyst forecasts on GNI Group stock, see the JP:2160 Stock Forecast page.