Price Target Changed • Jun 09
Price target increased by 16% to JP¥5,000 Up from JP¥4,300, the current price target is provided by 1 analyst. New target price is 79% above last closing price of JP¥2,786. Stock is down 24% over the past year. The company is forecast to post earnings per share of JP¥49.70 next year compared to a net loss per share of JP¥80.89 last year. Reported Earnings • May 20
First quarter 2026 earnings released: JP¥38.19 loss per share (vs JP¥10.57 loss in 1Q 2025) First quarter 2026 results: JP¥38.19 loss per share (further deteriorated from JP¥10.57 loss in 1Q 2025). Revenue: JP¥5.53b (up 3.9% from 1Q 2025). Net loss: JP¥2.13b (loss widened 301% from 1Q 2025). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 34% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 107 percentage points per year, which is a significant difference in performance. Board Change • May 18
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Hironao Yazaki was the last independent director to join the board, commencing their role in 2026. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Live News • May 08
Gyre Therapeutics Expands With US$300 Million Cullgen Acquisition to Strengthen U.S.-China Pipeline Gyre Therapeutics, a GNI Group subsidiary, has completed a US$300 million all‑stock acquisition of clinical-stage biopharma company Cullgen Inc.
Following the deal, former Cullgen CEO Ying Luo becomes President and CEO of Gyre, while Ping Zhang becomes Chairman, with Gyre retaining its Nasdaq listing under the ticker GYRE.
The combined group now brings together ETUARY®, late-stage candidate F351 and Cullgen’s protein degrader and DAC platforms within a single U.S.-China biopharma platform.
For you as an investor, the completion of the Cullgen acquisition means GNI’s ecosystem now spans a marketed product, an advanced late-stage pipeline asset and early-stage discovery platforms under Gyre Therapeutics. The all-stock structure keeps cash inside the group while folding Cullgen’s research capabilities and clinical programs into Gyre’s portfolio.
The management reshuffle, with Ying Luo taking the helm at Gyre and Ping Zhang assuming the chairman role, points to a focus on tighter operational control and clearer leadership around the combined U.S.-China setup. Investors may monitor how the group integrates Cullgen’s platforms, progresses F351 and uses ETUARY® alongside the protein degrader and DAC technologies to support pipeline development and potential partnerships. Board Change • Mar 31
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent External Director Masahiro Matsuoka was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Mar 13
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.3% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 14
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: JP¥84.08 loss per share (down from JP¥21.96 profit in FY 2024). Revenue: JP¥26.8b (up 14% from FY 2024). Net loss: JP¥4.41b (down JP¥5.51b from profit in FY 2024). Revenue missed analyst estimates by 3.5%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 28% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has increased by 31% per year, which means it is well ahead of earnings. Announcement • Feb 13
GNI Group Ltd., Annual General Meeting, Mar 26, 2026 GNI Group Ltd., Annual General Meeting, Mar 26, 2026. Announcement • Jan 10
GNI Group Ltd. (TSE:2160) acquired ZOO LABO Co., Ltd. GNI Group Ltd. (TSE:2160) acquired ZOO LABO Co., Ltd. on December 29, 2025. A cash consideration will be paid by GNI Group Ltd towards common equity of ZOO LABO Co., Ltd. The funds were sourced from the proceeds raised through the overseas public offering conducted in July 2025.
GNI Group Ltd. (TSE:2160) completed the acquisition of ZOO LABO Co., Ltd. on December 29, 2025. Announcement • Dec 27
GNI Group Ltd. to Report Fiscal Year 2025 Results on Feb 13, 2026 GNI Group Ltd. announced that they will report fiscal year 2025 results on Feb 13, 2026 Reported Earnings • Nov 18
Third quarter 2025 earnings released: EPS: JP¥7.84 (vs JP¥19.48 in 3Q 2024) Third quarter 2025 results: EPS: JP¥7.84 (down from JP¥19.48 in 3Q 2024). Revenue: JP¥7.11b (up 30% from 3Q 2024). Net income: JP¥420.0m (down 57% from 3Q 2024). Profit margin: 5.9% (down from 18% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 45% p.a. on average during the next 3 years, compared to a 33% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Announcement • Sep 27
GNI Group Ltd. to Report Q3, 2025 Results on Nov 14, 2025 GNI Group Ltd. announced that they will report Q3, 2025 results on Nov 14, 2025 Reported Earnings • Aug 15
Second quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2025 results: JP¥7.62 loss per share (improved from JP¥22.48 loss in 2Q 2024). Revenue: JP¥6.93b (up 20% from 2Q 2024). Net loss: JP¥384.7m (loss narrowed 66% from 2Q 2024). Revenue missed analyst estimates by 49%. Earnings per share (EPS) exceeded analyst estimates by 93%. Revenue is forecast to grow 43% p.a. on average during the next 3 years, compared to a 32% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 21% per year. Announcement • Jul 23
GNI Group Ltd. has filed a Follow-on Equity Offering. GNI Group Ltd. has filed a Follow-on Equity Offering.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 4,000,000 Announcement • Jun 27
GNI Group Ltd. to Report Q2, 2025 Results on Aug 14, 2025 GNI Group Ltd. announced that they will report Q2, 2025 results on Aug 14, 2025 Announcement • Jun 05
Gyre Pharmaceuticals Co., Ltd. Announces Launch of Etorel (Nintedanib Esilate Soft Capsules) by Gyre Pharmaceuticals GNI Group Ltd. announced that its core subsidiary, Gyre Pharmaceuticals Co. Ltd., has commenced sales of "Etorel" (Nintedanib Esilate Soft Capsules), as announced on May 8, 2024, in the press release titled "Notice Regarding License Agreement entered into by GNI's Consolidated Subsidiary, Gyre Pharmaceuticals Co. Ltd., as it has secured the only two approved drugs for pulmonary fibrosis worldwide. This achievement has strategic significance in strengthening its position as a global leading company in the treatment of pulmonary fibrosis, continuously expanding its market share, and enhancing its presence in the field of interstitial lung diseases. The market for pulmonary fibrosis is large, with many unmet clinical needs remaining. Nintedanib Esilates Soft Capsules are approved not only for idiopathic pulmonary fibrosis (IPF), but also for systemic sclerosis-associated interstitial lung disease (SSc-ILD) and progressive fibrosing interstitial lung disease (PF-ILD). The impact of this development on the company's performance has already been factored into the current consolidated earnings forecast. The impact of this development on The company's performance has already beenfactored into the current consolidated earnings forecasts. The impact of this development On the company's performance has already be factored into the current consolidated Earn forecast. The impact of this develop on the company's performance has also been factored into the current consolidate earnings forecast. The impact of This development on the company's performance have already been factored into the currently consolidated earnings forecast. The impact the development on the company's performance is already been factored into the existing consolidated earnings forecast. Price Target Changed • May 27
Price target increased by 11% to JP¥4,000 Up from JP¥3,600, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of JP¥4,110. Stock is up 96% over the past year. The company is forecast to post earnings per share of JP¥215 for next year compared to JP¥21.96 last year. Reported Earnings • May 17
First quarter 2025 earnings released: JP¥10.56 loss per share (vs JP¥29.17 profit in 1Q 2024) First quarter 2025 results: JP¥10.56 loss per share (down from JP¥29.17 profit in 1Q 2024). Revenue: JP¥5.32b (down 11% from 1Q 2024). Net loss: JP¥530.0m (down 137% from profit in 1Q 2024). Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • May 15
Consensus revenue estimates decrease by 12%, EPS upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from JP¥48.7b to JP¥43.0b. EPS estimate increased from JP¥195 to JP¥217 per share. Net income forecast to grow 869% next year vs 6.9% growth forecast for Biotechs industry in Japan. Consensus price target down from JP¥3,850 to JP¥3,600. Share price rose 3.5% to JP¥2,396 over the past week. Announcement • Apr 10
GNI Group Ltd. to Report Q1, 2025 Results on May 15, 2025 GNI Group Ltd. announced that they will report Q1, 2025 results on May 15, 2025 Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 29% After last week's 29% share price decline to JP¥1,490, the stock trades at a forward P/E ratio of 8x. Average trailing P/E is 31x in the Biotechs industry in Asia. Total returns to shareholders of 13% over the past three years. Reported Earnings • Apr 05
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥21.96 (down from JP¥170 in FY 2023). Revenue: JP¥23.6b (down 9.2% from FY 2023). Net income: JP¥1.10b (down 86% from FY 2023). Profit margin: 4.7% (down from 31% in FY 2023). Revenue missed analyst estimates by 35%. Earnings per share (EPS) also missed analyst estimates by 88%. Revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Feb 27
Now 23% undervalued Over the last 90 days, the stock has risen 4.5% to JP¥3,450. The fair value is estimated to be JP¥4,465, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 69%. For the next 3 years, revenue is forecast to grow by 24% per annum. Earnings are also forecast to grow by 34% per annum over the same time period. Announcement • Feb 18
GNI Group Ltd. Provides Consolidated Earnings Guidance for the Full Year Ending December 31, 2025 GNI Group Ltd. provided consolidated earnings guidance for the full year ending December 31, 2025. For the year, the company expects revenue of JPY 28,733 million, operating profit of JPY 23,217 million, profit for the year of JPY 15,868 million and basic earnings per share of JPY 240.42. Announcement • Feb 17
GNI Group Ltd., Annual General Meeting, Mar 27, 2025 GNI Group Ltd., Annual General Meeting, Mar 27, 2025. Reported Earnings • Feb 17
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥19.54 (down from JP¥170 in FY 2023). Revenue: JP¥23.6b (down 9.2% from FY 2023). Net income: JP¥977.0m (down 88% from FY 2023). Profit margin: 4.1% (down from 31% in FY 2023). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 35%. Earnings per share (EPS) also missed analyst estimates by 89%. Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Announcement • Jan 03
GNI Group Ltd. to Report Fiscal Year 2024 Results on Feb 14, 2025 GNI Group Ltd. announced that they will report fiscal year 2024 results on Feb 14, 2025 Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥3,295, the stock trades at a forward P/E ratio of 15x. Average trailing P/E is 22x in the Biotechs industry in Japan. Total returns to shareholders of 132% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,749 per share. Reported Earnings • Nov 18
Third quarter 2024 earnings released: EPS: JP¥19.48 (vs JP¥11.67 in 3Q 2023) Third quarter 2024 results: EPS: JP¥19.48 (up from JP¥11.67 in 3Q 2023). Revenue: JP¥5.46b (down 15% from 3Q 2023). Net income: JP¥975.0m (up 76% from 3Q 2023). Profit margin: 18% (up from 8.6% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Announcement • Oct 01
GNI Group Ltd. to Report Q3, 2024 Results on Nov 14, 2024 GNI Group Ltd. announced that they will report Q3, 2024 results on Nov 14, 2024 Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥2,495, the stock trades at a forward P/E ratio of 12x. Average trailing P/E is 17x in the Biotechs industry in Japan. Total returns to shareholders of 60% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,655 per share. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥2,241, the stock trades at a forward P/E ratio of 10x. Average trailing P/E is 14x in the Biotechs industry in Japan. Total returns to shareholders of 40% over the past three years. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: JP¥3.31 (vs JP¥34.98 in 2Q 2023) Second quarter 2024 results: EPS: JP¥3.31 (down from JP¥34.98 in 2Q 2023). Revenue: JP¥5.87b (down 41% from 2Q 2023). Net income: JP¥165.1m (down 90% from 2Q 2023). Profit margin: 2.8% (down from 17% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to JP¥1,732, the stock trades at a forward P/E ratio of 9x. Average trailing P/E is 51x in the Biotechs industry in Japan. Total returns to shareholders of 3.0% over the past three years. New Risk • Aug 02
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.9% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.9% average weekly change). High level of non-cash earnings (41% accrual ratio). Minor Risk Shareholders have been diluted in the past year (5.4% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,233, the stock trades at a forward P/E ratio of 14x. Average trailing P/E is 94x in the Biotechs industry in Japan. Total returns to shareholders of 21% over the past three years. Announcement • Jun 02
GNI Group Ltd. to Report Q2, 2024 Results on Aug 14, 2024 GNI Group Ltd. announced that they will report Q2, 2024 results on Aug 14, 2024 Board Change • May 19
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Executive officer, CFO & Director Toshiya Kitagawa was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Mar 27
GNI Group Ltd. to Report Q1, 2024 Results on May 15, 2024 GNI Group Ltd. announced that they will report Q1, 2024 results on May 15, 2024 Major Estimate Revision • Mar 19
Consensus revenue estimates increase by 38% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥28.8b to JP¥39.6b. EPS estimate increased from JP¥37.00 to JP¥143 per share. Net income forecast to shrink 12% next year vs 25% growth forecast for Biotechs industry in Japan . Consensus price target up from JP¥3,000 to JP¥4,100. Share price rose 2.8% to JP¥3,130 over the past week. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 43% After last week's 43% share price gain to JP¥3,615, the stock trades at a forward P/E ratio of 98x. Average trailing P/E is 69x in the Biotechs industry in Japan. Total returns to shareholders of 92% over the past three years. Reported Earnings • Feb 16
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: JP¥170 (up from JP¥8.17 in FY 2022). Revenue: JP¥26.0b (up 49% from FY 2022). Net income: JP¥8.09b (up JP¥7.71b from FY 2022). Profit margin: 31% (up from 2.2% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates significantly. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Feb 15
GNI Group Ltd., Annual General Meeting, Mar 28, 2024 GNI Group Ltd., Annual General Meeting, Mar 28, 2024. New Risk • Dec 22
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.7% 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risk Shareholders have been diluted in the past year (4.7% increase in shares outstanding). Announcement • Dec 05
GNI Group Ltd. to Report Fiscal Year 2023 Results on Feb 14, 2024 GNI Group Ltd. announced that they will report fiscal year 2023 results on Feb 14, 2024 Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: JP¥11.67 (vs JP¥8.40 in 3Q 2022) Third quarter 2023 results: EPS: JP¥11.67 (up from JP¥8.40 in 3Q 2022). Revenue: JP¥6.45b (up 40% from 3Q 2022). Net income: JP¥554.0m (up 39% from 3Q 2022). Profit margin: 8.6% (down from 8.7% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 44% After last week's 44% share price gain to JP¥1,970, the stock trades at a forward P/E ratio of 122x. Average forward P/E is 29x in the Biotechs industry in Asia. Total loss to shareholders of 25% over the past three years. New Risk • Aug 15
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 30% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). High level of non-cash earnings (30% accrual ratio). Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: JP¥34.96 (vs JP¥6.85 in 2Q 2022) Second quarter 2023 results: EPS: JP¥34.96 (up from JP¥6.85 in 2Q 2022). Revenue: JP¥9.89b (up 134% from 2Q 2022). Net income: JP¥1.66b (up 411% from 2Q 2022). Profit margin: 17% (up from 7.7% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Aug 04
Consensus EPS estimates fall by 47% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from JP¥68.00 to JP¥36.00. Revenue forecast unchanged from JP¥24.8b at last update. Net income forecast to grow 3,411% next year vs 33% growth forecast for Biotechs industry in Japan. Consensus price target of JP¥1,500 unchanged from last update. Share price rose 10% to JP¥1,346 over the past week. Announcement • Jul 04
Gni Group Ltd. Announces Notice of Executive Officer Appointment July 3, 2023, GNI Group Ltd. ("the Group") announced the appointment of Toshiya Kitagawa as Chief Strategy Officer (CSO) with the aim of accelerating the global business growth of the Group under a resolution of the Board of Directors dated on July 3, 2023. Career summary of Toshiya Kitagawa: April 2000: Japan Bond Trading Co. Ltd. April 2002: Totan ICAP Co. Ltd. February 2003: Deal Max Co. Ltd. October 2008: OAG Certified Public Tax Accountant's Corporation Business Development Manager. April 2009: Takara Leben Co. Ltd. Director, Executive Officer, General Manager of Corporate Planning Office. April 2017: Hoosiers Holdings Co. Ltd. General Manager of Group Strategy Office. January 2019: BASE Co. Ltd. CEO. March 2023: Eltes Co. Ltd. Deputy General Manager of Corporate Planning Office. July 2023: GNI Group Ltd., SO. New Risk • Jun 17
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.1% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.1% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Reported Earnings • May 19
First quarter 2023 earnings released: JP¥0.042 loss per share (vs JP¥7.40 profit in 1Q 2022) First quarter 2023 results: JP¥0.042 loss per share (down from JP¥7.40 profit in 1Q 2022). Revenue: JP¥4.21b (up 6.9% from 1Q 2022). Net loss: JP¥2.00m (down 101% from profit in 1Q 2022). Profit margin: 0% (down from 8.9% in 1Q 2022). Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 15% per year, which means it is performing significantly worse than earnings. Announcement • May 10
Beijing Continent Achieves Mid-Point Subject Enrollment for F351 Phase III Clinical Trial in China GNI Group Ltd. provided an update on the subject enrollment in Phase III clinical trial in China of F351 (generic name: Hydronidone) for HBV-induced liver fibrosis conducted by one of main subsidiaries, Beijing Continent Pharmaceuticals Co. Ltd. As of May 19, 2023, Continent has completed the enrollments of 124 subjects, which is 50% of the target enrollment. Board Change • Apr 12
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 6 non-independent directors. Outside Director Kanako Kikuchi was the last director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 18
Full year 2022 earnings released: EPS: JP¥9.61 (vs JP¥22.72 in FY 2021) Full year 2022 results: EPS: JP¥9.61 (down from JP¥22.72 in FY 2021). Revenue: JP¥17.4b (up 37% from FY 2021). Net income: JP¥456.0m (down 57% from FY 2021). Profit margin: 2.6% (down from 8.4% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Announcement • Feb 15
GNI Group Ltd., Annual General Meeting, Mar 30, 2023 GNI Group Ltd., Annual General Meeting, Mar 30, 2023. Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥1,393, the stock trades at a forward P/E ratio of 48x. Average forward P/E is 27x in the Biotechs industry in Asia. Total loss to shareholders of 47% over the past three years. Announcement • Dec 06
GNI Group Ltd. to Report Fiscal Year 2022 Results on Feb 15, 2023 GNI Group Ltd. announced that they will report fiscal year 2022 results on Feb 15, 2023 Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: JP¥8.42 (vs JP¥7.42 in 3Q 2021) Third quarter 2022 results: EPS: JP¥8.42 (up from JP¥7.42 in 3Q 2021). Revenue: JP¥4.61b (up 50% from 3Q 2021). Net income: JP¥400.0m (up 14% from 3Q 2021). Profit margin: 8.7% (down from 12% in 3Q 2021). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 17
Second quarter 2022 earnings released: EPS: JP¥6.85 (vs JP¥10.76 in 2Q 2021) Second quarter 2022 results: EPS: JP¥6.85 (down from JP¥10.76 in 2Q 2021). Revenue: JP¥4.22b (up 63% from 2Q 2021). Net income: JP¥325.0m (down 36% from 2Q 2021). Profit margin: 7.7% (down from 20% in 2Q 2021). Over the next year, revenue is forecast to grow 25%, compared to a 182% growth forecast for the Biotechs industry in Japan. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Major Estimate Revision • Aug 16
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from JP¥15.7b to JP¥16.4b. EPS estimate fell from JP¥58.00 to JP¥23.13 per share. Net income forecast to grow 21% next year vs 29% growth forecast for Biotechs industry in Japan. Consensus price target of JP¥2,100 unchanged from last update. Share price was steady at JP¥1,977 over the past week. Valuation Update With 7 Day Price Move • Jul 19
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥1,526, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 26x in the Biotechs industry in Asia. Total returns to shareholders of 5.5% over the past three years. Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥1,210, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 23x in the Biotechs industry in Asia. Total returns to shareholders of 29% over the past three years. Price Target Changed • Apr 27
Price target decreased to JP¥2,100 Down from JP¥2,500, the current price target is provided by 1 analyst. New target price is 82% above last closing price of JP¥1,156. Stock is down 43% over the past year. The company is forecast to post earnings per share of JP¥58.00 for next year compared to JP¥22.72 last year. Reported Earnings • Apr 02
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: JP¥22.72 (down from JP¥28.96 in FY 2020). Revenue: JP¥12.7b (up 30% from FY 2020). Net income: JP¥1.07b (down 15% from FY 2020). Profit margin: 8.4% (down from 13% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 27%. Over the next year, revenue is forecast to grow 24%, compared to a 3,392% growth forecast for the pharmaceuticals industry in Japan. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,416, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 29x in the Biotechs industry in Asia. Total returns to shareholders of 43% over the past three years. Reported Earnings • Feb 16
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: JP¥22.72 (down from JP¥28.96 in FY 2020). Revenue: JP¥12.7b (up 30% from FY 2020). Net income: JP¥1.07b (down 15% from FY 2020). Profit margin: 8.4% (down from 13% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 27%. Over the next year, revenue is forecast to grow 24%, compared to a 1,669% growth forecast for the pharmaceuticals industry in Japan. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. 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 JP¥1,193, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 27x in the Biotechs industry in Asia. Total returns to shareholders of 11% over the past three years. Reported Earnings • Nov 18
Third quarter 2021 earnings released: EPS JP¥7.44 (vs JP¥5.11 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥3.07b (up 19% from 3Q 2020). Net income: JP¥353.0m (up 59% from 3Q 2020). Profit margin: 12% (up from 8.6% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment deteriorated over the past week After last week's 17% share price decline to JP¥1,586, the stock trades at a trailing P/E ratio of 44.8x. Average trailing P/E is 36x in the Biotechs industry in Japan. Total returns to shareholders of 44% over the past three years. Reported Earnings • Apr 06
Full year 2020 earnings released: EPS JP¥28.96 (vs JP¥4.28 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥9.77b (up 31% from FY 2019). Net income: JP¥1.26b (up JP¥1.08b from FY 2019). Profit margin: 13% (up from 2.4% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 113% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥2,315, the stock trades at a trailing P/E ratio of 79.9x. Average trailing P/E is 112x in the Biotechs industry in Japan. Total returns to shareholders of 27% over the past three years. Reported Earnings • Feb 14
Full year 2020 earnings released: EPS JP¥25.05 (vs JP¥4.28 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥9.77b (up 31% from FY 2019). Net income: JP¥1.09b (up JP¥907.0m from FY 2019). Profit margin: 11% (up from 2.4% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 110% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Jan 22
New 90-day high: JP¥2,179 The company is up 3.0% from its price of JP¥2,108 on 23 October 2020. The Japanese market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Biotechs industry, which is up 7.0% over the same period.