GNI Group (2160) AI Stock Analysis

• Market Cap: ¥137.14B
• Dividend Yield: N/A
• Average Volume (3M): 969.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥2,443.00 ▲(6.68% 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

Stable revenue from long-term contracts and collaborations

GNI's business model focuses on API production and long-term partnerships with major pharma, creating recurring revenue and predictable demand. This structural client base supports revenue visibility, aids capacity planning, and reduces reliance on one-off sales, strengthening medium-term cash predictability.

Conservative leverage and healthy capital structure

A low debt-to-equity ratio provides financial flexibility to fund operations, R&D, or acquisitions without excessive refinancing risk. This conservative leverage profile reduces default risk, preserves borrowing capacity during stress, and supports long-term investment in biopharma capabilities.

Modest but positive top-line growth

Sustained revenue growth, even modest, reflects continued product/service demand and contract wins. It creates a platform for operational scaling and margin recovery if management improves execution. Persistent top-line expansion supports long-term R&D funding and market position in APIs and biopharma services.

Negative Factors

Negative operating and free cash flows

Persistent negative operating and free cash flows indicate the business is not generating internal liquidity to fund operations or investments. This structural cash shortfall pressures working capital, increases reliance on external financing, and constrains sustainable R&D and capacity expansion plans.

Declining profitability and negative margins

Transition from strong margins to negative EBIT and net income margins signals operational or pricing challenges. Sustained margin deterioration undermines the firm's ability to self-fund growth, weakens returns to shareholders, and suggests structural issues in cost base, pricing power, or product mix that need fixing.

Earnings collapse and impaired shareholder returns

A >100% drop in EPS signals severe earnings deterioration, reducing ability to generate shareholder value and limiting dividend or buyback potential. It often reflects one-time writedowns, margin pressure, or rising costs, and it impairs market confidence and long-term capital-raising ability if not reversed.

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: 2290.00
• 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 2290 is below the 20-day moving average (MA) of 2422.90, below the 50-day MA of 2439.70, and below the 200-day MA of 2676.64, indicating a neutral trend. The MACD of 8.83 indicates Negative momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 50.49 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	¥225.25B	-38.57	-10.16%	―	-62.47%	-134.06%
2160	47 Neutral	¥137.14B	-167.09	-1.81%	―	13.78%	-110.02%
4974	47 Neutral	¥98.74B	-15.47	―	2.18%	-0.16%	-802.20%
4592	42 Neutral	¥132.41B	-35.16	-636.97%	―	―	-12.69%
4565	40 Neutral	¥78.73B	-12.76	-9.05%	―	-1.96%	-64.18%
4593	38 Underperform	¥31.52B	-6.94	―	―	-82.33%	47.73%

GNI Group Corporate Events

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.

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.

The most recent analyst rating on (JP:2160) stock is a Hold with a Yen2551.00 price target. To see the full list of analyst forecasts on GNI Group stock, see the JP:2160 Stock Forecast page.