GNI Group (2160) AI Stock Analysis

• Market Cap: ¥137.08B
• Dividend Yield: N/A
• Average Volume (3M): 969.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• 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: 55,612,198
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥2,311.00 ▼(-6.81% Downside)

The overall stock score reflects significant financial and valuation challenges. The company's negative profitability and cash flow issues are major concerns, compounded by a bearish technical outlook. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Positive revenue growth indicates expanding market presence and demand for GNI Group's biopharmaceutical products, supporting long-term business sustainability.

Low Debt Levels

A low debt-to-equity ratio suggests conservative financial management, providing GNI Group with flexibility to invest in growth opportunities without significant leverage risks.

Long-term Contracts

Long-term contracts with major pharmaceutical companies ensure a steady revenue stream, enhancing financial stability and enabling strategic planning for future growth.

Negative Factors

Negative Profitability

Negative profitability indicates operational inefficiencies, which can hinder GNI Group's ability to reinvest in R&D and maintain competitive positioning.

Negative Cash Flows

Negative cash flows suggest liquidity issues, potentially limiting GNI Group's capacity to fund operations and invest in growth initiatives without external financing.

Negative Return on Equity

A negative return on equity reflects inefficiencies in generating returns from shareholders' equity, which may deter investment and affect long-term growth prospects.

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

The company faces profitability and cash flow challenges, with a negative net profit margin and deteriorating cash generation, despite a strong gross profit margin and manageable leverage.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a gross profit margin of 75.8%, which is strong, but the net profit margin is negative at -4.38%, reflecting recent profitability challenges. Revenue growth is positive at 4.99% TTM, but EBIT and EBITDA margins have turned negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.19 TTM, suggesting manageable leverage. However, the return on equity is negative at -2.87% TTM, indicating inefficiencies in generating returns from equity. The equity ratio is not provided, but the overall leverage appears controlled.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows TTM. The free cash flow growth rate is -19.72%, indicating deteriorating cash generation. The operating cash flow to net income ratio is negative, highlighting cash flow issues relative to earnings.

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: 2480.00
• 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 Positive. The current price of 2480 is above the 20-day moving average (MA) of 2428.20, above the 50-day MA of 2438.02, and below the 200-day MA of 2717.43, indicating a neutral trend. The MACD of -19.52 indicates Negative momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 68.46 is Neutral, 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	¥221.22B	-38.63	-10.16%	―	-62.47%	-134.06%
4974	49 Neutral	¥94.65B	-14.85	―	2.16%	-0.16%	-802.20%
4592	48 Neutral	¥128.51B	-34.50	-636.97%	―	―	-12.69%
4565	46 Neutral	¥78.19B	-12.51	-9.05%	―	-1.96%	-64.18%
2160	45 Neutral	¥137.08B	-168.04	-1.81%	―	13.78%	-110.02%
4593	37 Underperform	¥33.25B	-7.94	―	―	-82.33%	47.73%

GNI Group Corporate Events

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.

GNI Group’s Subsidiary Completes Enrollment for Key Clinical Trial

GNI Group Ltd. announced that its subsidiary, Gyre Therapeutics, has completed subject enrollment for a Phase 3 clinical trial of Pirfenidone Capsule, aimed at treating pneumoconiosis. This trial, conducted across 18 centers in China, evaluates the drug’s efficacy and safety over 52 weeks. The completion of enrollment marks a significant step in the development of treatments for this chronic lung disease, although the financial impact on GNI Group’s current fiscal year is expected to be minimal.

GNI Group Advances Non-Opioid Pain Therapy with Phase 1 Trial Completion

GNI Group Ltd. announced the completion of subject enrollment for the Phase 1 clinical trial of CG001419, a novel non-opioid pain product candidate developed by its subsidiary Cullgen. This trial marks a significant step in offering a new class of pain signal inhibitors that could provide safer and more effective treatment options for acute and chronic pain, with plans to advance to Phase 2 trials by early next year. The financial impact on the company’s current fiscal year is expected to be minimal.