GNI Group (2160) AI Stock Analysis

• Market Cap: €156.92B
• Dividend Yield: N/A
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): 108.8
• Beta (1Y): 1.51
• Revenue Growth: -17.18%
• EPS Growth: -108.99%
• Country: JP
• Employees: 867
• Sector: Industrials
• Sector Strength: 89
• Industry: Biotechnology
• EPS (TTM): -10.57
• Shares Outstanding: 50,538,445
• 10 Day Avg. Volume: 1,738,650
• 30 Day Avg. Volume: 2,325,750
• PEG Ratio: 0.05
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -42.76
• 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: €3,826.25
• Price Target Upside: 23.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: ¥2,957.00 ▼(-4.77%Downside)

The overall stock score reflects significant financial challenges, particularly in income and cash flow, compounded by negative technical indicators. The valuation is unattractive due to negative earnings, with no compensating dividend yield. The stable balance sheet offers some support, but operational and market pressures are strong.

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

The company exhibits a mixed financial picture, with a strong balance sheet counterbalanced by weak income and cash flow statements. While the equity position is stable, declining revenues and negative earnings indicate operational challenges.

Income Statement

The company experienced a significant decline in performance with negative EBIT and net income in the TTM period. Gross profit margin remains strong, but revenue has decreased, indicating potential challenges in maintaining growth.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of approximately 50%. The debt-to-equity ratio remains low, demonstrating a conservative leverage approach. However, the decrease in stockholders' equity may be concerning.

Cash Flow

Negative operating and free cash flows highlight liquidity challenges. The cash flow to net income ratio is unfavorable, indicating financial struggles in maintaining cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.98B	23.61B	26.01B	17.42B	12.69B	9.77B
Gross Profit	17.42B	18.04B	22.43B	14.74B	11.09B	8.23B
EBITDA	-3.98M	2.39B	14.49B	2.16B	2.14B	2.19B
Net Income	-1.01B	977.66M	8.09B	-868.25M	55.24M	1.26B
Balance Sheet
Total Assets	68.00B	71.94B	62.39B	33.91B	30.30B	23.22B
Cash, Cash Equivalents and Short-Term Investments	9.93B	10.12B	23.15B	11.25B	14.36B	10.34B
Total Debt	6.62B	7.21B	3.70B	537.36M	1.13B	1.75B
Total Liabilities	31.34B	32.07B	26.34B	14.10B	11.03B	10.45B
Stockholders Equity	34.10B	36.45B	33.79B	20.97B	18.86B	11.00B
Cash Flow
Free Cash Flow	-3.77B	-3.69B	4.47B	-1.55B	-142.13M	1.02B
Operating Cash Flow	-3.10B	-3.16B	6.55B	393.32M	552.27M	1.38B
Investing Cash Flow	-7.33B	-10.36B	-6.84B	-4.12B	-260.64M	570.21M
Financing Cash Flow	84.57M	694.16M	10.69B	-646.33M	2.85B	801.12M

GNI Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3105.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 3105 is below the 20-day moving average (MA) of 3441.75, below the 50-day MA of 3289.96, and above the 200-day MA of 2976.03, indicating a neutral trend. The MACD of -107.44 indicates Positive momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 13.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2160.

GNI Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$10.82B	15.59	5.20%	1.89%	3.09%	-26.84%
2160	43 Neutral	€156.92B	108.76	-2.52%	―	-17.18%	-108.99%
PPTDF		$1.39B	16.46	29.98%	―	―	―
SNBIF		$1.02B	―	-197.82%	―	―	―
SOLTF		$526.00M	―	-3.36%	―	―	―
4974	61 Neutral	¥98.02B	94.62		2.09%	3.53%	-29.66%
4593	56 Neutral	¥48.05B	―		―	374.19%	35.53%

GNI Group Corporate Events

GNI Group’s Cullgen Nears Nasdaq Listing After Shareholder Approval

GNI Group Ltd. announced that all agenda items related to the reverse merger between its subsidiary Cullgen Inc. and Pulmatrix, Inc. have been approved by Pulmatrix’s shareholders. This approval fulfills a key condition for Cullgen’s listing on the Nasdaq market, with only the China Securities Regulatory Commission’s approval pending. If the listing is delayed, the deconsolidation and recognition of a one-time gain will shift to the third quarter of 2025 or later, but the impact on GNI Group’s earnings forecast is expected to be limited.

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’s Gyre Therapeutics Begins Phase 1 Trial for PAH Drug in China

GNI Group’s subsidiary, Gyre Therapeutics, has initiated a Phase 1 clinical trial in China for F230, a treatment candidate for pulmonary arterial hypertension (PAH). This marks the company’s entry into the PAH market, a rare and life-threatening condition with limited treatment options. The trial aims to assess the safety and pharmacokinetics of F230, a selective endothelin A receptor antagonist, and is part of Gyre’s strategy to expand its fibrosis treatment pipeline. The development is not expected to impact the company’s earnings forecast for the current fiscal year.

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’s Gyre Pharmaceuticals Launches Etorel for Pulmonary Fibrosis

GNI Group’s subsidiary, Gyre Pharmaceuticals, has launched Etorel (Nintedanib Esilate Soft Capsules), marking a strategic advancement in the treatment of pulmonary fibrosis. This launch strengthens Gyre Pharmaceuticals’ position as a global leader in this field, addressing significant unmet clinical needs and expanding its market presence.

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’s Subsidiary Gyre Therapeutics Completes Successful Public Offering

GNI Group Ltd. has announced the successful completion of a public offering by its subsidiary, Gyre Therapeutics, raising approximately $23 million. The proceeds will be used for research and development, manufacturing, and general corporate purposes. This offering slightly reduces GNI’s ownership in Gyre from 83.03% to 80.69%, but Gyre remains a consolidated subsidiary, ensuring no change in the scope of consolidation.

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’s Liver Fibrosis Drug Achieves Key Trial Success in China

GNI Group Ltd.’s subsidiary, Gyre Therapeutics, has successfully completed a Phase 3 clinical trial in China for their liver fibrosis treatment drug, F351. The trial’s success, demonstrating significant fibrosis regression, positions the company favorably in the Chinese market for chronic hepatitis B-related liver fibrosis treatments.

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.

Gyre Therapeutics Launches $20 Million Public Stock Offering

Gyre Therapeutics, a subsidiary of GNI Group Ltd., has announced a public offering of its common stock, aiming to raise approximately $20 million. The proceeds will support the Phase 2 clinical trial of F351 in the U.S. and other corporate purposes, with a potential dilution rate of 2.83% for existing shareholders.

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 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.