DNA Chip Research Inc. (2397) AI Stock Analysis

• Market Cap: $7.39B
• Dividend Yield: N/A
• Average Volume (3M): 13.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 122.98%
• EPS Growth: 88.51%
• Country: JP
• Employees: 37
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -5.04
• Shares Outstanding: 6,760,471
• 10 Day Avg. Volume: 9,310
• 30 Day Avg. Volume: 13,330
• PEG Ratio: -0.07
• Price to Book (P/B): 6.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.23
• 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: 51 Neutral
• Price Target: ―

DNA Chip Research Inc. exhibits a mixed financial profile with strong balance sheet aspects, notably no debt and substantial equity, but significant profitability and cash flow challenges. While short-term technical indicators suggest potential upward momentum, the valuation remains a concern due to negative earnings. Addressing operational and revenue issues is crucial for improving overall financial health and enhancing investor confidence.

DNA Chip Research Inc. Business Overview & Revenue Model

Company Description

DNA Chip Research Inc. (2397) is a biotechnology company specializing in the development and commercialization of DNA microarray technology. The company operates within the life sciences sector, focusing on innovative solutions for genetic analysis and molecular diagnostics. Its core products include DNA chips and related technologies that facilitate high-throughput genetic testing and research.

How the Company Makes Money

DNA Chip Research Inc. generates revenue primarily through the sale of its DNA microarray products and services to research institutions, healthcare providers, and pharmaceutical companies. The company also derives income from licensing its proprietary technologies to other organizations in the biotech and life sciences industries. Additionally, strategic partnerships and collaborations with research organizations and corporations contribute to its revenue streams, alongside potential government and private grants for research and development projects.

DNA Chip Research Inc. Financial Statement Overview

Summary

DNA Chip Research Inc. faces significant financial challenges. The income statement shows ongoing profitability issues with negative earnings, although there are signs of potential revenue recovery. The balance sheet is a bright spot, with no debt and a strong equity position, but cash flow difficulties highlight the need for improved operational efficiency and revenue generation.

Income Statement

The income statement reflects a challenging period, with negative net income and EBITDA results over recent years. TTM data shows a gross profit margin of 46.9%, indicating some strength in cost management, but the net profit margin remains negative at -3.57%, highlighting continued profitability issues. Revenue growth has been inconsistent, with recent improvements in TTM revenue compared to the previous annual figure, suggesting potential recovery. However, persistent negative EBIT and EBITDA margins point to underlying operational challenges.

Balance Sheet

The balance sheet is relatively strong, with a solid equity base and no total debt, resulting in a favorable debt-to-equity ratio of 0. Return on equity remains negative due to net losses, but the equity ratio is robust at 68.94%, indicating a strong capital structure. The company's significant cash position further enhances balance sheet stability, mitigating liquidity risks.

Cash Flow

Cash flow analysis shows significant weaknesses, with negative operating cash flow and free cash flow over several periods. Although the TTM period does not reflect these metrics, historical data indicates persistent cash outflows. The absence of positive free cash flow growth and reliance on financing activities for liquidity are potential concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	962.05M	1.09B	490.46M	327.54M	427.94M	324.50M
Gross Profit	451.04M	570.34M	66.35M	-35.58M	89.22M	66.18M
EBITDA	-3.58M	2.24M	-217.00M	-345.07M	-151.00M	-150.57M
Net Income	-34.32M	-58.19M	-248.29M	-362.34M	-134.05M	-172.47M
Balance Sheet
Total Assets	1.03B	991.31M	982.48M	871.13M	890.03M	1.02B
Cash, Cash Equivalents and Short-Term Investments	429.00M	410.62M	388.41M	275.36M	489.15M	620.80M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	319.00M	317.22M	250.12M	160.48M	109.51M	90.36M
Stockholders Equity	708.00M	674.10M	732.36M	710.65M	780.52M	930.62M
Cash Flow
Free Cash Flow	0.00	36.72M	-156.09M	-462.84M	-131.65M	-127.42M
Operating Cash Flow	0.00	84.07M	-140.23M	-336.71M	-72.97M	-76.02M
Investing Cash Flow	0.00	-61.22M	-15.78M	-155.40M	-58.67M	-51.40M
Financing Cash Flow	0.00	-632.00K	269.05M	278.32M	0.00	445.84M

DNA Chip Research Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1092.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2397, the sentiment is Positive. The current price of 1092 is above the 20-day moving average (MA) of 1090.75, above the 50-day MA of 1090.88, and above the 200-day MA of 884.65, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 58.17 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2397.

DNA Chip Research Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4507	83 Outperform	$2.24T	12.09	13.71%	2.25%	4.04%	21.20%
4151	75 Outperform	$1.35T	35.31	4.61%	2.28%	3.62%	-59.69%
4578	74 Outperform	$3.93T	9.78	15.51%	1.74%	10.17%	226.18%
4568	68 Neutral	¥6.86T	23.31	18.32%	1.63%	14.09%	31.96%
Sector *	60 Neutral	HK$16.95B	6.14	-7.34%	3.69%	12.24%	-25.44%
7731	59 Neutral	$460.75B	82.52	0.91%	3.39%	-0.27%	-81.19%
2397	51 Neutral	$7.39B	―		―	122.98%	88.51%