SEHK:1801

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

HK$125.2b

Last Updated

2021/06/17 16:45 UTC

Data Sources

Company Financials +

Executive Summary

Innovent Biologics, Inc. operates as a biopharmaceutical company in China. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

How has Innovent Biologics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1801 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 1801's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-4.5%

1801

-4.6%

HK Biotechs

-1.5%

HK Market


1 Year Return

73.5%

1801

42.8%

HK Biotechs

21.7%

HK Market

Return vs Industry: 1801 exceeded the Hong Kong Biotechs industry which returned 51.4% over the past year.

Return vs Market: 1801 exceeded the Hong Kong Market which returned 23.8% over the past year.


Shareholder returns

1801IndustryMarket
7 Day-4.5%-4.6%-1.5%
30 Day-6.2%3.7%-0.9%
90 Day10.8%12.7%-2.5%
1 Year73.5%73.5%43.0%42.8%26.2%21.7%
3 Yearn/a-10.4%-11.8%9.7%-1.9%
5 Yearn/a65.9%60.0%56.3%29.7%

Long-Term Price Volatility Vs. Market

How volatile is Innovent Biologics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Innovent Biologics undervalued compared to its fair value and its price relative to the market?

11.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1801 (HK$87.7) is trading above our estimate of fair value (HK$71.93)

Significantly Below Fair Value: 1801 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1801 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Biotechs industry average.

PE vs Market: 1801 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1801's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1801 is overvalued based on its PB Ratio (11.5x) compared to the HK Biotechs industry average (4.1x).


Future Growth

How is Innovent Biologics forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

49.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1801 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 1801 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1801's is expected to become profitable in the next 3 years.

Revenue vs Market: 1801's revenue (24.4% per year) is forecast to grow faster than the Hong Kong market (12.7% per year).

High Growth Revenue: 1801's revenue (24.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1801's Return on Equity is forecast to be low in 3 years time (8.8%).


Past Performance

How has Innovent Biologics performed over the past 5 years?

-10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1801 is currently unprofitable.

Growing Profit Margin: 1801 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1801 is unprofitable, and losses have increased over the past 5 years at a rate of 10.3% per year.

Accelerating Growth: Unable to compare 1801's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1801 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (43.1%).


Return on Equity

High ROE: 1801 has a negative Return on Equity (-11.37%), as it is currently unprofitable.


Financial Health

How is Innovent Biologics's financial position?


Financial Position Analysis

Short Term Liabilities: 1801's short term assets (CN¥9.5B) exceed its short term liabilities (CN¥1.5B).

Long Term Liabilities: 1801's short term assets (CN¥9.5B) exceed its long term liabilities (CN¥1.6B).


Debt to Equity History and Analysis

Debt Level: 1801's debt to equity ratio (13.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1801's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1801 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 1801 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Innovent Biologics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1801's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1801's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1801's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1801's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1801's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Michael Yu (57 yo)

10.42yrs

Tenure

Dr. De-Chao Yu, also known as Michael , Ph.D. co-founded Innovent Biologics, Inc. in August 2011 and has been its Chairman and Chief Executive Officer since 2011. He served as its President at Innovent Bio...


Leadership Team

Experienced Management: 1801's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1801's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.


Top Shareholders

Company Information

Innovent Biologics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Innovent Biologics, Inc.
  • Ticker: 1801
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$125.165b
  • Shares outstanding: 1.46b
  • Website: https://www.innoventbio.com

Number of Employees


Location

  • Innovent Biologics, Inc.
  • 168 Dongping Street
  • Suzhou Industrial Park
  • Suzhou
  • Jiangsu Province
  • 215123
  • China

Listings


Biography

Innovent Biologics, Inc. operates as a biopharmaceutical company in China. The company operates a platform for the discovery, development, manufacture, and commercialization of antibody drug candidates in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/17 16:45
End of Day Share Price2021/06/17 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.