Buy Or Sell Opportunity • Apr 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to HK$1.84. The fair value is estimated to be HK$2.31, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 11% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 15% per annum. Earnings are also forecast to grow by 26% per annum over the same time period. New Risk • Apr 01
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 92% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (12% average weekly change). Large one-off items impacting financial results. Reported Earnings • Apr 01
Full year 2025 earnings released: EPS: CN¥0.10 (vs CN¥0.078 in FY 2024) Full year 2025 results: EPS: CN¥0.10 (up from CN¥0.078 in FY 2024). Revenue: CN¥1.73b (down 13% from FY 2024). Net income: CN¥219.8m (up 31% from FY 2024). Profit margin: 13% (up from 8.4% in FY 2024). Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Life Sciences industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 122% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • Mar 30
Viva Biotech Holdings, Annual General Meeting, Jun 26, 2026 Viva Biotech Holdings, Annual General Meeting, Jun 26, 2026. Announcement • Mar 19
Viva Biotech Optimizes Proteina-Complexa Model And Advances Lab-In-The-Loop Workflow With NVIDIA Technology Viva Biotech optimizes the Proteina-Complexa model in advancing the design of mini-binders targeting ActRIIA, a receptor critical in muscle wasting and lean mass imbalance, aiming to accelerate the discovery of novel therapeutics with AI-driven designs with NVIDIA technology. The collaboration highlights Viva Biotech's Lab-in-the-Loop workflow, combining de novo computational design with high throughput protein production and biophysical evaluation to design ActRIIA binders. This integrated approach demonstrates how in silico predictions with real-world experimental validations can expedite drug discovery, showcasing the effectiveness of NVIDIA BioNeMo and Viva Biotech's AI-driven integrated drug discovery platform in optimizing drug candidates. As part of this effort, Viva Biotech leverages its AI technique for sequence selection and provide valuable feedback to improve the original Proteina-Complexa model. This iteration led to more efficient and targeted mini-binder designs. Guided by AI-driven insights, the company successfully explored previously uncharted chemical space and significantly enhanced design specificity, achieving these advances at a fraction of the cost and time compared with conventional drug candidate nomination processes. Announcement • Mar 18
Viva Biotech Holdings to Report Fiscal Year 2025 Results on Mar 30, 2026 Viva Biotech Holdings announced that they will report fiscal year 2025 results on Mar 30, 2026 Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$1.99, the stock trades at a trailing P/E ratio of 21.6x. Average forward P/E is 38x in the Life Sciences industry in Hong Kong. Total returns to shareholders of 24% over the past three years. Announcement • Feb 16
Viva Biotech Holdings Announces Resignation of Wang Stephen Hui as Non-Executive Director, Effective February 16, 2026 Viva Biotech Holdings announced that Mr. Wang Stephen Hui has tendered his resignation from the office of a non-executive Director on February 16, 2026 with immediate effect. Mr. Wang resigned from his position in order to devote more time to pursue his other personal and business engagements. As at the date of this announcement, the Board comprises three Executive Directors, namely, Mr. Mao Chen Cheney (Chairman), Mr. Wu Ying and Mr. Ren Delin; a Non-executive Director, namely, Mr. Wu Yuting; and three Independent Non-executive Directors, namely, Mr. Fu Lei, Ms. Li Xiangrong and Mr. Wang Haiguang. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment improves as stock rises 38% After last week's 38% share price gain to HK$2.67, the stock trades at a trailing P/E ratio of 29.2x. Average forward P/E is 41x in the Life Sciences industry in Hong Kong. Total returns to shareholders of 38% over the past three years. Valuation Update With 7 Day Price Move • Jan 12
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to HK$2.13, the stock trades at a trailing P/E ratio of 23.3x. Average forward P/E is 42x in the Life Sciences industry in Hong Kong. Negligible returns to shareholders over past three years. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to HK$1.99, the stock trades at a trailing P/E ratio of 22.3x. Average forward P/E is 43x in the Life Sciences industry in Hong Kong. Total returns to shareholders of 35% over the past three years. Valuation Update With 7 Day Price Move • Oct 03
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$2.85, the stock trades at a trailing P/E ratio of 31.9x. Average forward P/E is 45x in the Life Sciences industry in Hong Kong. Total returns to shareholders of 119% over the past three years. Valuation Update With 7 Day Price Move • Sep 04
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$2.71, the stock trades at a trailing P/E ratio of 30.4x. Average forward P/E is 40x in the Life Sciences industry in Hong Kong. Total returns to shareholders of 66% over the past three years. New Risk • Sep 01
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 35% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 31
First half 2025 earnings released: EPS: CN¥0.058 (vs CN¥0.055 in 1H 2024) First half 2025 results: EPS: CN¥0.058 (up from CN¥0.055 in 1H 2024). Revenue: CN¥831.9m (down 15% from 1H 2024). Net income: CN¥121.8m (up 4.3% from 1H 2024). Profit margin: 15% (up from 12% in 1H 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Life Sciences industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Aug 18
Viva Biotech Holdings to Report First Half, 2025 Results on Aug 28, 2025 Viva Biotech Holdings announced that they will report first half, 2025 results on Aug 28, 2025 New Risk • Aug 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Buy Or Sell Opportunity • Aug 14
Now 30% overvalued after recent price rise Over the last 90 days, the stock has risen 39% to HK$2.44. The fair value is estimated to be HK$1.87, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 3.4% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 26% per annum over the same time period. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to HK$2.12, the stock trades at a trailing P/E ratio of 24.4x. Average forward P/E is 28x in the Life Sciences industry in Hong Kong. Total returns to shareholders of 10% over the past three years. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.75, the stock trades at a trailing P/E ratio of 20.2x. Average forward P/E is 30x in the Life Sciences industry in Hong Kong. Total loss to shareholders of 14% over the past three years. Valuation Update With 7 Day Price Move • Jun 19
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to HK$1.53, the stock trades at a trailing P/E ratio of 17.7x. Average forward P/E is 24x in the Life Sciences industry in Hong Kong. Total loss to shareholders of 42% over the past three years. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$1.66, the stock trades at a trailing P/E ratio of 19.3x. Average forward P/E is 22x in the Life Sciences industry in Hong Kong. Total loss to shareholders of 27% over the past three years. Reported Earnings • Apr 27
Full year 2024 earnings released: EPS: CN¥0.078 (vs CN¥0.06 loss in FY 2023) Full year 2024 results: EPS: CN¥0.078 (up from CN¥0.06 loss in FY 2023). Revenue: CN¥1.99b (down 7.8% from FY 2023). Net income: CN¥167.3m (up CN¥283.4m from FY 2023). Profit margin: 8.4% (up from net loss in FY 2023). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Life Sciences industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to HK$1.67, the stock trades at a trailing P/E ratio of 19.8x. Average trailing P/E is 30x in the Life Sciences industry in Hong Kong. Total loss to shareholders of 44% over the past three years. Reported Earnings • Mar 28
Full year 2024 earnings released: EPS: CN¥0.08 (vs CN¥0.06 loss in FY 2023) Full year 2024 results: EPS: CN¥0.08 (up from CN¥0.06 loss in FY 2023). Revenue: CN¥1.99b (down 7.8% from FY 2023). Net income: CN¥167.3m (up CN¥283.4m from FY 2023). Profit margin: 8.4% (up from net loss in FY 2023). Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 14% per year, which means it is performing significantly worse than earnings. Announcement • Mar 17
Viva Biotech Holdings to Report Fiscal Year 2024 Results on Mar 27, 2025 Viva Biotech Holdings announced that they will report fiscal year 2024 results on Mar 27, 2025 New Risk • Feb 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 23% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (12% average weekly change). New Risk • Sep 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 23% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Shareholders have been diluted in the past year (12% increase in shares outstanding). Reported Earnings • Sep 30
First half 2024 earnings released: EPS: CN¥0.055 (vs CN¥0.001 in 1H 2023) First half 2024 results: EPS: CN¥0.055 (up from CN¥0.001 in 1H 2023). Revenue: CN¥981.8m (down 14% from 1H 2023). Net income: CN¥116.8m (up CN¥115.8m from 1H 2023). Profit margin: 12% (up from 0.1% in 1H 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 17 percentage points per year, which is a significant difference in performance. Announcement • Sep 27
Viva Biotech Holdings Announces Chief Financial Officer Changes Viva Biotech Holdings announced with effect from September 27, 2024, Mr. WANG Zheren (‘Mr. Wang’) has tendered his resignation from the role of Co-Chief Financial Officer of the Group with effect from the date of this announcement. Mr. Wang will remain with the Group and continue to serve as the Chief Financial Officer of Viva Shanghai, and will be primarily responsible for leading Viva Shanghai's financial management and strategic development, as well as serving as the secretary to the board of Viva Shanghai. The change in roles and responsibilities will enable Mr. Wang to focus more of his attention on leading the financial management and strategic development of Viva Shanghai. Upon the proposed change in roles, Mr. XIONG Wei, the other Co-Chief Financial Officer of the Group, will assume the role as the Chief Financial Officer of the Group, and will primarily responsible for leading the Group's financial management and capital market related affairs. The Company confirms that there are no other matters required to be brought to the attention of the shareholders of the Company in relation to the change of roles of the Co-Chief Financial Officers. Announcement • Sep 05
Viva Biotech Holdings (SEHK:1873) commences an Equity Buyback Plan for 216,136,630 shares, representing 10% of its issued share capital, under the authorization approved on June 26, 2024. Viva Biotech Holdings (SEHK:1873) commences share repurchases on September 5, 2024, under the program mandated by the shareholders in the Annual General Meeting held on June 26, 2024. As per the mandate, the company is authorized to repurchase up to a maximum of 216,136,630 shares, representing 10% of the issued share capital. The purpose of the program is to enhance the net asset value per share and/or earnings per share. The repurchases will be funded entirely from the cash flow or working capital facilities available to the Company and funds legally available for the purpose in accordance with the Articles of Association, applicable laws of the Cayman Islands and the Listing Rules. The authority shall expire at the earliest of the next Annual General Meeting, the date on which the next Annual General Meeting is required to be held or the date on which the authority is varied or revoked in a General Meeting. As of June 26, 2024, the company had 2,161,366,305 shares in issue.
On August 29, 2024, the company announced a share repurchase program. Under the program, the company will repurchase HKD 100 million worth of shares. The repurchases will be funded from company's internal resources. The repurchased shares will be cancelled or hold them as
treasury shares. Announcement • Aug 20
Viva Biotech Holdings to Report First Half, 2024 Results on Aug 29, 2024 Viva Biotech Holdings announced that they will report first half, 2024 results on Aug 29, 2024 Reported Earnings • Apr 30
Full year 2023 earnings released: CN¥0.06 loss per share (vs CN¥0.28 loss in FY 2022) Full year 2023 results: CN¥0.06 loss per share (improved from CN¥0.28 loss in FY 2022). Revenue: CN¥2.16b (down 9.4% from FY 2022). Net loss: CN¥116.1m (loss narrowed 78% from FY 2022). Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has fallen by 57% per year, which means it is performing significantly worse than earnings. Announcement • Mar 29
Viva Biotech Holdings, Annual General Meeting, Jun 26, 2024 Viva Biotech Holdings, Annual General Meeting, Jun 26, 2024. Reported Earnings • Mar 29
Full year 2023 earnings released: CN¥0.06 loss per share (vs CN¥0.28 loss in FY 2022) Full year 2023 results: CN¥0.06 loss per share (improved from CN¥0.28 loss in FY 2022). Revenue: CN¥2.16b (down 9.4% from FY 2022). Net loss: CN¥116.1m (loss narrowed 78% from FY 2022). Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has fallen by 57% per year, which means it is performing significantly worse than earnings. New Risk • Mar 20
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 35% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Shareholders have been diluted in the past year (12% increase in shares outstanding). Announcement • Mar 19
Viva Biotech Holdings to Report Fiscal Year 2023 Results on Mar 28, 2024 Viva Biotech Holdings announced that they will report fiscal year 2023 results on Mar 28, 2024 Announcement • Jan 18
Viva Biotech Holdings Appoints WANG Stephen Hui as Non-Executive Director Viva Biotech Holdings at its extraordinary general meeting held on January 18, 2024, the board announced that Mr. WANG Stephen Hui ("Mr. Wang") was appointed as a non-executive Director with effect from January 18, 2024. He will hold office for a term of three years. New Risk • Dec 15
New major risk - Revenue and earnings growth Earnings have declined by 35% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 35% per year over the past 5 years. Minor Risk Shareholders have been diluted in the past year (12% increase in shares outstanding). Announcement • Dec 02
Viva Biotech Holdings Announces Executive Changes The board of directors of Viva Biotech Holdings announced that Mr. REN Delin (Mr. Ren), an executive director of the company will begin serving as the general manager and chief executive officer of Viva Biotech (Shanghai) Ltd. and will cease to serve as the president of the company, effective December 1, 2023. Mr. Ren will continue to serve on the board of the company as an executive director and will remain as a member of Viva Shanghai's senior management team. He will serve as the general manager and chief executive officer of Viva Shanghai and will remain responsible for the overall management of the Group's contract research organization (CRO) and drug discovery functions. The other roles and responsibilities previously held by Mr. Ren as president of the company Will be assumed by Mr. MAO Chen Cheney, the chief executive officer of the group and chairman of the company. The change in executive responsibilities will enable Mr. Ren to focus more of his attention to leading the Group's CRO and drug discovery businesses. Announcement • Dec 01
Viva Biotech Holdings Appoints Xiong Wei as Co-Chief Financial Officer The board of directors of Viva Biotech Holdings announced that Mr. XIONG Wei (Mr. Xiong) has been appointed as the co-chief financial officer of the group with effect from December 1, 2023 and in such role, he will be reporting to Mr. Mao. Mr. Xiong will be responsible for jointing leading the Group's financial management and capital market related affairs along with Mr. WANG Zheren (Mr. Wang), the Group's current Chief Financial Officer. Mr. Xiong will be primarily focused on the financial management of the Group's contract design and manufacturing (CDMO) and commercialization services while Mr. Wang will be primarily focused on the financial management of the Group's CRO and drug discovery services. Mr. Xiong, aged 40, joined its Group in November 2020 as part of the Group's acquisition of Zhejiang Langhua Pharmaceutical Co. Ltd., he currently serves as the financial director of Langhua Pharmaceutical and is primarily responsible for its financial management. Mr. Xiong joined Langhua Pharmaceutical in September 2018. Prior to that, Mr. Xiong was employed by Donghaixiang Group Co. Ltd. from November 2011 to September 2018 where he last served as the executive vice general manager and financial director. He was employed by Zhejiang Yongtai Technology Co. Ltd. from May 2007 to November 2011 where he last served as the investment director and securities business representatives and by CITIC Securities where he last served as an industry analyst from July 2005 to November 2006. Mr. Xiong graduated from the Huazhong University of Science and Technology School of Economics with a degree in international economics and trade and from the Zhongnan University of Economics and Law with a degree in law in June 2005. He is qualified to serve as a board secretary for companies listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange, and has been qualified as a senior economist since November 2023. New Risk • Nov 21
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 12% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 31
First half 2023 earnings released: EPS: CN¥0.001 (vs CN¥0.048 loss in 1H 2022) First half 2023 results: EPS: CN¥0.001 (up from CN¥0.048 loss in 1H 2022). Revenue: CN¥1.14b (up 3.0% from 1H 2022). Net income: CN¥1.01m (up CN¥92.2m from 1H 2022). Profit margin: 0.1% (up from net loss in 1H 2022). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Life Sciences industry in Asia. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 45% per year, which means it is performing significantly worse than earnings. Announcement • Aug 18
Viva Biotech Holdings to Report First Half, 2023 Results on Aug 29, 2023 Viva Biotech Holdings announced that they will report first half, 2023 results on Aug 29, 2023 Announcement • Jul 08
Viva Biotech Holdings announced that it has received HKD 470 million in funding On July 7, 2023, Viva Biotech Holdings, closed the transaction. Recent Insider Transactions • Jun 15
Executive VP & Executive Director recently bought HK$226k worth of stock On the 13th of June, Ying Wu bought around 140k shares on-market at roughly HK$1.62 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. New Risk • Jun 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 9.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.6x net interest cover). Minor Risk Share price has been volatile over the past 3 months (9.8% average weekly change). Reported Earnings • Apr 01
Full year 2022 earnings released: CN¥0.28 loss per share (vs CN¥0.15 profit in FY 2021) Full year 2022 results: CN¥0.28 loss per share (down from CN¥0.15 profit in FY 2021). Revenue: CN¥2.38b (up 13% from FY 2021). Net loss: CN¥528.5m (down 284% from profit in FY 2021). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Jan 16
Investor sentiment improved over the past week After last week's 17% share price gain to HK$2.15, the stock trades at a trailing P/E ratio of 31.7x. Average trailing P/E is 28x in the Life Sciences industry in Hong Kong. Total loss to shareholders of 54% over the past three years. Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment deteriorated over the past week After last week's 18% share price decline to HK$1.54, the stock trades at a trailing P/E ratio of 23.7x. Average trailing P/E is 25x in the Life Sciences industry in Hong Kong. Total loss to shareholders of 64% over the past three years. Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment improved over the past week After last week's 24% share price gain to HK$1.94, the stock trades at a trailing P/E ratio of 30x. Average trailing P/E is 27x in the Life Sciences industry in Hong Kong. Total loss to shareholders of 56% over the past three years. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Haiguang Wang was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improved over the past week After last week's 18% share price gain to HK$1.44, the stock trades at a trailing P/E ratio of 23x. Average trailing P/E is 22x in the Life Sciences industry in Hong Kong. Total loss to shareholders of 69% over the past three years. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improved over the past week After last week's 17% share price gain to HK$1.47, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 35x in the Life Sciences industry in Asia. Total loss to shareholders of 70% over the past three years. Reported Earnings • Aug 31
First half 2022 earnings released: CN¥0.048 loss per share (vs CN¥0.044 profit in 1H 2021) First half 2022 results: CN¥0.048 loss per share (down from CN¥0.044 profit in 1H 2021). Revenue: CN¥1.11b (up 8.0% from 1H 2021). Net loss: CN¥91.2m (down 207% from profit in 1H 2021). Over the next year, revenue is forecast to grow 46%, compared to a 33% growth forecast for the Life Sciences industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jun 21
Investor sentiment improved over the past week After last week's 22% share price gain to HK$2.80, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 34x in the Life Sciences industry in Asia. Total loss to shareholders of 13% over the past three years. Valuation Update With 7 Day Price Move • May 10
Investor sentiment deteriorated over the past week After last week's 18% share price decline to HK$2.11, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 33x in the Life Sciences industry in Asia. Total loss to shareholders of 58% over the past three years. Reported Earnings • May 02
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.15 (up from CN¥0.25 loss in FY 2020). Revenue: CN¥2.10b (up 202% from FY 2020). Net income: CN¥287.5m (up CN¥674.4m from FY 2020). Profit margin: 14% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 8.8%. Earnings per share (EPS) also missed analyst estimates by 71%. Over the next year, revenue is forecast to grow 30%, compared to a 37% growth forecast for the pharmaceuticals industry in Hong Kong. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Haiguang Wang was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 30
Full year 2021 earnings: Revenues miss analyst expectations Full year 2021 results: Revenue: CN¥2.10b (up 202% from FY 2020). Net income: CN¥287.5m (up CN¥674.4m from FY 2020). Profit margin: 14% (up from net loss in FY 2020). Revenue missed analyst estimates by 8.8%. Over the next year, revenue is forecast to grow 49%, compared to a 36% growth forecast for the pharmaceuticals industry in Hong Kong. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improved over the past week After last week's 20% share price gain to HK$3.04, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 41x in the Life Sciences industry in Asia. Total loss to shareholders of 57% over the past year. Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment deteriorated over the past week After last week's 16% share price decline to HK$3.15, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 40x in the Life Sciences industry in Asia. Total loss to shareholders of 56% over the past year. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorated over the past week After last week's 18% share price decline to HK$3.78, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 42x in the Life Sciences industry in Asia. Total loss to shareholders of 50% over the past year. Valuation Update With 7 Day Price Move • Dec 07
Investor sentiment improved over the past week After last week's 17% share price gain to HK$5.45, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 50x in the Life Sciences industry in Asia. Total loss to shareholders of 29% over the past year. Recent Insider Transactions • Oct 01
Executive VP & Executive Director recently bought HK$1.1m worth of stock On the 29th of September, Ying Wu bought around 200k shares on-market at roughly HK$5.65 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold HK$576m more in shares than they bought in the last 12 months. Reported Earnings • Sep 03
First half 2021 earnings released: EPS CN¥0.044 (vs CN¥0.38 loss in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: CN¥1.03b (up 420% from 1H 2020). Net income: CN¥85.0m (up CN¥615.3m from 1H 2020). Profit margin: 8.3% (up from net loss in 1H 2020). Recent Insider Transactions • Jul 17
Insider recently sold HK$345m worth of stock On the 14th of July, Fengmao Hua sold around 40m shares on-market at roughly HK$8.64 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of HK$577m more than they bought in the last 12 months. Executive Departure • Jul 13
Executive Director Fengmao Hua has left the company On the 30th of June, Fengmao Hua's tenure as Executive Director ended after less than a year in the role. As of March 2021, Fengmao still personally held 130.10m shares (HK$872m worth at the time). A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 3.00 years. Upcoming Dividend • Jun 09
Upcoming dividend of HK$0.01 per share Eligible shareholders must have bought the stock before 16 June 2021. Payment date: 09 July 2021. Trailing yield: 0.3%. Lower than top quartile of Hong Kong dividend payers (6.0%). In line with average of industry peers (0.3%). Recent Insider Transactions • Apr 24
Executive Director & CFO recently sold HK$257m worth of stock On the 19th of April, Fengmao Hua sold around 38m shares on-market at roughly HK$6.76 per share. This was the largest sale by an insider in the last 3 months. Fengmao has been a seller over the last 12 months, reducing personal holdings by HK$242m. Reported Earnings • Mar 31
Full year 2020 earnings released: CN¥0.25 loss per share (vs CN¥0.19 profit in FY 2019) The company reported a decent full year result with improved revenues, although earnings and control over costs were weaker. Full year 2020 results: Revenue: CN¥697.0m (up 116% from FY 2019). Net loss: CN¥386.9m (down 246% from profit in FY 2019). Is New 90 Day High Low • Feb 24
New 90-day low: HK$6.90 The company is down 3.0% from its price of HK$7.12 on 26 November 2020. The Hong Kong market is up 18% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Life Sciences industry, which is up 42% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is HK$1.60 per share. 