Buy Or Sell Opportunity • May 11
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 24% to CN¥21.80. The fair value is estimated to be CN¥17.46, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has declined by 8.8%. Revenue is forecast to grow by 40% in 2 years. Earnings are forecast to grow by 52% in the next 2 years. New Risk • May 05
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 Chinese stocks, typically moving 7.9% 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. This is currently the only risk that has been identified for the company. Major Estimate Revision • Apr 29
Consensus EPS estimates increase by 23% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from CN¥908.4m to CN¥954.6m. EPS estimate increased from CN¥0.373 to CN¥0.46 per share. Net income forecast to grow 26% next year vs 23% growth forecast for Life Sciences industry in China. Consensus price target up from CN¥21.95 to CN¥27.96. Share price rose 5.7% to CN¥20.66 over the past week. Reported Earnings • Apr 24
First quarter 2026 earnings released: EPS: CN¥0.12 (vs CN¥0.07 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.12 (up from CN¥0.07 in 1Q 2025). Revenue: CN¥208.1m (up 22% from 1Q 2025). Net income: CN¥47.1m (up 57% from 1Q 2025). Profit margin: 23% (up from 18% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Life Sciences industry in China. Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 4% per year. Announcement • Apr 23
GemPharmatech Co., Ltd., Annual General Meeting, May 14, 2026 GemPharmatech Co., Ltd., Annual General Meeting, May 14, 2026, at 10:00 China Standard Time. Location: No. 12, Xuefu Road, Jiangbei New District, Nanjing, Jiangsu China Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥17.55, the stock trades at a forward P/E ratio of 47x. Average forward P/E is 38x in the Life Sciences industry in China. Total loss to shareholders of 30% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥9.25 per share. Announcement • Mar 30
GemPharmatech Co., Ltd. to Report Q1, 2026 Results on Apr 23, 2026 GemPharmatech Co., Ltd. announced that they will report Q1, 2026 results on Apr 23, 2026 Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥13.04, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 34x in the Life Sciences industry in China. Total loss to shareholders of 47% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥9.27 per share. Reported Earnings • Feb 05
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: CN¥0.35 (up from CN¥0.27 in FY 2024). Revenue: CN¥793.3m (up 16% from FY 2024). Net income: CN¥144.4m (up 32% from FY 2024). Profit margin: 18% (up from 16% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 14%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Life Sciences industry in China. Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 17% per year. Announcement • Dec 26
GemPharmatech Co., Ltd. to Report Fiscal Year 2025 Results on Apr 23, 2026 GemPharmatech Co., Ltd. announced that they will report fiscal year 2025 results on Apr 23, 2026 Reported Earnings • Oct 23
Third quarter 2025 earnings released: EPS: CN¥0.10 (vs CN¥0.052 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.10 (up from CN¥0.052 in 3Q 2024). Revenue: CN¥200.8m (up 19% from 3Q 2024). Net income: CN¥39.0m (up 78% from 3Q 2024). Profit margin: 19% (up from 13% in 3Q 2024). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Life Sciences industry in China. Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 18% per year. Major Estimate Revision • Oct 01
Consensus EPS estimates fall by 21% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from CN¥0.40 to CN¥0.317 per share. Revenue forecast steady at CN¥780.0m. Net income forecast to grow 38% next year vs 20% growth forecast for Life Sciences industry in China. Consensus price target up from CN¥14.00 to CN¥23.00. Share price fell 2.4% to CN¥18.06 over the past week. Announcement • Sep 30
GemPharmatech Co., Ltd. to Report Q3, 2025 Results on Oct 23, 2025 GemPharmatech Co., Ltd. announced that they will report Q3, 2025 results on Oct 23, 2025 Reported Earnings • Aug 26
Second quarter 2025 earnings released: EPS: CN¥0.10 (vs CN¥0.12 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.10 (down from CN¥0.12 in 2Q 2024). Revenue: CN¥204.0m (up 11% from 2Q 2024). Net income: CN¥40.9m (down 13% from 2Q 2024). Profit margin: 20% (down from 26% in 2Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Life Sciences industry in China. Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 16% per year. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥18.88, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 36x in the Life Sciences industry in China. Total loss to shareholders of 41% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥10.32 per share. New Risk • Aug 07
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 Chinese stocks, typically moving 6.6% 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 Dividend is not well covered by cash flows (dividend per share is over 7x cash flows per share). Share price has been volatile over the past 3 months (6.6% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (16% net profit margin). New Risk • Jun 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 Chinese stocks, typically moving 8.5% 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 Dividend is not well covered by cash flows (dividend per share is over 7x cash flows per share). Share price has been volatile over the past 3 months (8.5% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (16% net profit margin). Announcement • Jun 30
GemPharmatech Co., Ltd. to Report First Half, 2025 Results on Aug 23, 2025 GemPharmatech Co., Ltd. announced that they will report first half, 2025 results on Aug 23, 2025 Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥15.04, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 32x in the Life Sciences industry in China. Total loss to shareholders of 53% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥9.68 per share. Announcement • Apr 26
GemPharmatech Co., Ltd., Annual General Meeting, May 28, 2025 GemPharmatech Co., Ltd., Annual General Meeting, May 28, 2025, at 10:00 China Standard Time. Location: No. 12, Xuefu Road, Jiangbei New District, Nanjing, Jiangsu China New Risk • Apr 24
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.5% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (17% net profit margin). New Risk • Apr 07
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 Chinese stocks, typically moving 8.5% 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 (8.5% average weekly change). Profit margins are more than 30% lower than last year (17% net profit margin). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥11.31, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 29x in the Life Sciences industry in China. Total loss to shareholders of 8.5% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥13.08 per share. Announcement • Mar 28
GemPharmatech Co., Ltd. to Report Q1, 2025 Results on Apr 26, 2025 GemPharmatech Co., Ltd. announced that they will report Q1, 2025 results on Apr 26, 2025 Reported Earnings • Mar 03
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.28 (down from CN¥0.39 in FY 2023). Revenue: CN¥686.8m (up 10% from FY 2023). Net income: CN¥115.8m (down 27% from FY 2023). Profit margin: 17% (down from 26% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) also missed analyst estimates by 29%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Life Sciences industry in China. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥15.71, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 26x in the Life Sciences industry in China. Total returns to shareholders of 25% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥24.39 per share. Announcement • Dec 27
GemPharmatech Co., Ltd. to Report Fiscal Year 2024 Results on Apr 26, 2025 GemPharmatech Co., Ltd. announced that they will report fiscal year 2024 results on Apr 26, 2025 Announcement • Nov 08
GemPharmatech Co., Ltd. (SHSE:688046) announces an Equity Buyback for CNY 40 million worth of its shares. GemPharmatech Co., Ltd. (SHSE:688046) announces a share repurchase program. Under the program, the company will repurchase up to CNY 40 million worth of its shares. The shares will be purchased at a price not exceeding CNY 18 per share. The purpose of the program is to improve the company's long-term incentive mechanism, fully mobilize the enthusiasm of the employees, and jointly promote the company's long-term development. The repurchased shares will be used for employee stock ownership plans or equity incentive plans, otherwise will be cancelled if the company fails to transfer them within the time limit stipulated by relevant laws and regulations. The program will be funded from company's own funds and the special loan funds. The program will be valid for 12 months. The company had 410,000,000 shares outstanding. Reported Earnings • Nov 02
Third quarter 2024 earnings released: EPS: CN¥0.052 (vs CN¥0.10 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.052 (down from CN¥0.10 in 3Q 2023). Revenue: CN¥169.3m (up 6.7% from 3Q 2023). Net income: CN¥21.9m (down 46% from 3Q 2023). Profit margin: 13% (down from 25% in 3Q 2023). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Life Sciences industry in China. Announcement • Oct 25
NeoMab Biotechnology (Suzhou) Co., Ltd. Launches the Innovative NeoMab-IgG Ease Model NeoMab Biotechnology (Suzhou) Co., Ltd., a wholly-owned subsidiary of GemPharmatech launched the innovative NeoMab-IgG Ease model, based on its next-generation fully human antibody transgenic mouse model—NeoMab. This advancement marks another significant breakthrough for NeoMab in the field of antibody drug development. The NeoMab-IgG Ease model simplifies the antibody drug development process significantly with its unique "milestone-free, live mouse provision" approach, making commercial collaboration more efficient and convenient. NeoMab mice utilize human V(D)J gene-encoded antibodies, exhibiting gene usage frequency and sequence diversity similar to humans, making them suitable for fully human antibody development. Their competent immune system is capable of efficiently performing antigen presentation, antibody production, and affinity maturation. The unique BALB/c genetic background and antigen presentation system enhance the ability to present antigens, with serum titers reaching 10^5 to 10^6 after 3-4 rounds of immunizations, promoting the generation of high-affinity antibodies. SPR testing shows that the antibody affinities of NeoMab mice range from 10^-8 to 10^-10, meeting various needs for fully humanized antibody development. NeoMab is committed to providing convenient one-stop services for its clients. The NeoMab-IgG Ease model employs a "milestone-free, live mouse provision" business model, eliminating lengthy negotiations and milestone payment processes. Clients can directly obtain live mice for immunization, allowing for the rapid development of fully human therapeutic antibodies. This streamlined collaboration enhances flexibility and optimizes the complex payment and agreement processes typical of traditional business models. Through the NeoMab platform, clients can access the NeoMab models and have the opportunity to obtain a variety of fully human building blocks such as IgG, ScFv, and Fab, catering to the development of various drug types and cell therapies, including ADCs, AOCs, and mono/bi/multispecific antibodies and nanobodies. NeoMab provides a comprehensive range of services from target validation to IND filing, ensuring a seamless experimental process. By integrating antibody screening with in vivo experimental animal models, NeoMab significantly accelerates the in vivo animal study process and eliminates the costs associated with humanization, helping clients shorten drug development timelines by up to 1.5 years. Partners have expressed their recognition and affirmation of NeoMab's services in accelerating the research and development process. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to CN¥12.31, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 22x in the Life Sciences industry in China. Total loss to shareholders of 26% over the past year. Announcement • Sep 30
GemPharmatech Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 GemPharmatech Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥12.71, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 22x in the Life Sciences industry in China. Total loss to shareholders of 25% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥25.20 per share. New Risk • Sep 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 Chinese stocks, typically moving 6.7% 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 High level of non-cash earnings (32% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.7% average weekly change). Announcement • Jun 28
GemPharmatech Co., Ltd. to Report First Half, 2024 Results on Aug 29, 2024 GemPharmatech Co., Ltd. announced that they will report first half, 2024 results on Aug 29, 2024 Announcement • Apr 29
GemPharmatech Co., Ltd., Annual General Meeting, Jun 13, 2024 GemPharmatech Co., Ltd., Annual General Meeting, Jun 13, 2024, at 10:00 China Standard Time. Location: No. 12, Xuefu Road, Jiangbei New District, Nanjing, Jiangsu China Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥11.07, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 23x in the Life Sciences industry in China. Total loss to shareholders of 55% over the past year. Announcement • Mar 30
GemPharmatech Co., Ltd. to Report Q1, 2024 Results on Apr 27, 2024 GemPharmatech Co., Ltd. announced that they will report Q1, 2024 results on Apr 27, 2024 Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥15.53, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 23x in the Life Sciences industry in China. Total loss to shareholders of 40% over the past year. Reported Earnings • Feb 24
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.39 (down from CN¥0.42 in FY 2022). Revenue: CN¥622.2m (up 21% from FY 2022). Net income: CN¥159.0m (down 3.5% from FY 2022). Profit margin: 26% (down from 32% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 13%. Revenue is forecast to grow 27% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Life Sciences industry in China. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥12.78, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 20x in the Life Sciences industry in China. Total loss to shareholders of 58% over the past year. New Risk • Jan 26
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 Chinese stocks, typically moving 6.5% 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 High level of non-cash earnings (31% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (6.5% average weekly change). Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥13.98, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 23x in the Life Sciences industry in China. Total loss to shareholders of 54% over the past year. Announcement • Dec 30
GemPharmatech Co., Ltd. to Report Fiscal Year 2023 Results on Apr 27, 2024 GemPharmatech Co., Ltd. announced that they will report fiscal year 2023 results on Apr 27, 2024 Announcement • Dec 27
GemPharmatech Co., Ltd. (SHSE:688046) announces an Equity Buyback for CNY 40 million worth of its shares. GemPharmatech Co., Ltd. (SHSE:688046) announces a share repurchase program. Under the program, the company will repurchase up to CNY 40 million worth of class A shares. The shares will be repurchased at a price of not more than CNY 29 per share. The shares purchased will be used for the company's equity incentive plan or ESOP. The program will be valid till 12 months. Reported Earnings • Nov 02
Third quarter 2023 earnings released: EPS: CN¥0.10 (vs CN¥0.11 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.10 (down from CN¥0.11 in 3Q 2022). Revenue: CN¥158.7m (up 17% from 3Q 2022). Net income: CN¥40.1m (down 14% from 3Q 2022). Profit margin: 25% (down from 34% in 3Q 2022). Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Life Sciences industry in China. Reported Earnings • Sep 01
Second quarter 2023 earnings released: EPS: CN¥0.11 (vs CN¥0.14 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.11 (down from CN¥0.14 in 2Q 2022). Revenue: CN¥155.6m (up 16% from 2Q 2022). Net income: CN¥46.5m (down 9.3% from 2Q 2022). Profit margin: 30% (down from 38% in 2Q 2022). Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Life Sciences industry in China. Announcement • Aug 22
GemPharmatech Co., Ltd. Introduced NeoMab GemPharmatech announced the launch of NeoMab™, independently developed fully antibody gene humanized mouse model, after four years of rigorous research and validation. NeoMab™ is specifically designed to meet the burgeoning therapeutic antibody development demands of biotechnology companies and pharmaceutical enterprises. NeoMab™ is developed on the widely recognized BALB/c genetic background, rendering it highly suitable for antibody discovery. This model retains the native mouse constant region encoding genes while incorporating human variable gene repertoires into endogenous loci. This strategy gives rise to a formidable model that synergizes the strengths of the mouse immune system with human-specific variable regions, making it an ideal candidate for propelling antibody discovery and innovative research. Through extensive in vitro and in vivo experimentation, the NeoMab™ mouse model has exhibited the following exceptional attributes: Human-Like Variable Gene Usage Frequency: NeoMab™ mice employ human V(D)J genes to encode antibodies, mirroring gene usage frequency and sequence diversity remarkably similar to those observed in humans. Competent Immune System: NeoMab™ mice maintain an intact immune system, with proportions of diverse immune cell subsets akin to those found in BALB/c mice. Uninterrupted B-Cell Development: NeoMab™ mice demonstrate unimpeded antibody class switching, somatic hypermutation, and B-cell development. These mice showcase immunoglobulin levels in their serum comparable to those in BALB/c background mice. Robust Immune Response: After immunization with antigens, NeoMab™ mice exhibit antigen-specific serum titers similar to BALB/c mice. The antibodies derived from the NeoMab™ mouse model offer the following advantages: High Affinity: Antibodies obtained from NeoMab™ mice exhibit an affinity range of approximately 10-10 to 10-8 (as assessed by SPR detection), comparable to or even surpassing that of FDA-approved therapeutic antibody drugs. Effective In Vitro and In Vivo Functionality: The in vitro functional activity and in vivo efficacy of NeoMab™-derived antibodies closely mirror those observed in FDA-approved therapeutic antibody drugs. Reduced Risk of Immunogenicity: These antibodies are less likely to trigger immune responses, due to their higher success rate attributed to the human antibody gene background. NeoMab™, a fully antibody gene humanized model from GemPharmatech, synergizes seamlessly with advanced technical platform. It not only streamlines preclinical discovery and validation processes for forward-thinking pharmaceutical enterprises but also leverages licensing agreements and high-throughput screening platforms to expedite objectives efficiently and cost-effectively. This approach optimizes capital investment and galvanizes innovative drug development, ultimately paving the way for advancements in the field. GemPharmatech's commitment to advancing disease mechanism research, pharmaceutical development, and translational studies is exemplified through array of model resources and support services. Repository encompasses KOAP mice and tool mice tailored for drug screening, providing invaluable resources for target validation and pharmacological efficacy investigations. Additionally, meticulously developed research service platforms span prominent domains such as oncology, metabolism, cardiovascular sciences, immunology, and neuroscience. By harnessing the synergy between these platforms and model resources, the company deliver comprehensive non-clinical research services across diverse fields. NeoMab™, fully antibody gene humanized model, stands as a pivotal addition within the GemPharmatech portfolio. This innovative platform seamlessly integrates with expansive model resources and professional technical service platforms, elevating antibody research and discovery endeavors. Through this harmonious fusion, the company empower drug development enterprises with comprehensive support, expediting the journey of uncovering and advancing new therapeutic agents. New Risk • Jun 12
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 38% 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. This is currently the only risk that has been identified for the company. Reported Earnings • May 02
First quarter 2023 earnings released: EPS: CN¥0.08 (vs CN¥0.08 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.08 (in line with 1Q 2022). Revenue: CN¥140.3m (up 21% from 1Q 2022). Net income: CN¥31.1m (up 2.4% from 1Q 2022). Profit margin: 22% (down from 26% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Life Sciences industry in China. Reported Earnings • Mar 02
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.42 (up from CN¥0.35 in FY 2021). Revenue: CN¥516.5m (up 31% from FY 2021). Net income: CN¥163.6m (up 31% from FY 2021). Profit margin: 32% (in line with FY 2021). Revenue missed analyst estimates by 6.8%. Earnings per share (EPS) also missed analyst estimates by 5.3%. Revenue is forecast to grow 37% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Life Sciences industry in China. Board Change • Nov 16
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 Director Bo Yu was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 31
Third quarter 2022 earnings released: EPS: CN¥0.11 (vs CN¥0.11 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.11 (in line with 3Q 2021). Revenue: CN¥135.9m (up 26% from 3Q 2021). Net income: CN¥46.5m (up 18% from 3Q 2021). Profit margin: 34% (down from 37% in 3Q 2021). Revenue is forecast to grow 39% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Life Sciences industry in China. Valuation Update With 7 Day Price Move • Sep 29
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥30.19, the stock trades at a forward P/E ratio of 59x. Average forward P/E is 30x in the Life Sciences industry in China. Reported Earnings • Aug 24
Second quarter 2022 earnings released Second quarter 2022 results: EPS: CN¥0.14. Net income: CN¥51.3m (up CN¥51.3m from 2Q 2021). Over the next year, revenue is forecast to grow 54%, compared to a 39% growth forecast for the Life Sciences industry in China.