Understanding the Market | GENSCRIPT BIO fell over 3%, unbinding legendary contributions of $3.2 billion in revenue, with a net loss of $174 million in core business last year
GENSCRIPT BIO's stock price fell over 3%, down 3.44% as of the time of writing, at HKD 12.36, with a trading volume of HKD 163 million. The company released its 2024 annual performance, with revenue from continuing operations of approximately USD 594.5 million, an increase of 6.1% year-on-year; the parent company's profit was USD 2.962 billion, mainly benefiting from the USD 3.2 billion revenue from the spin-off of Legend Biotech. The core business reported a net loss of USD 174 million, facing challenges in profitability. Daiwa has lowered its target price to HKD 25, maintaining a "Buy" rating; Bank of China International has reduced its target price to HKD 21, also maintaining a "Buy" rating
According to Zhitong Finance APP, GENSCRIPT BIO (01548) fell over 3%, down 3.44% as of the time of writing, priced at HKD 12.36, with a transaction volume of HKD 163 million.
In terms of news, GENSCRIPT BIO released its 2024 annual performance yesterday, reporting revenue from continuing operations of approximately USD 594.5 million, an increase of 6.1% year-on-year; profit attributable to the parent company was USD 2.962 billion, compared to a loss of USD 95.477 million in the same period last year. Bank of China International pointed out that GENSCRIPT BIO's revenue for 2024 is USD 594 million, with a net profit of USD 2.9 billion, mainly benefiting from a one-time gain of USD 3.2 billion from the spin-off of Legend Biotech. Additionally, the core business reported a net loss of USD 174 million, reflecting that despite cost optimization and automation measures, profitability still faces ongoing challenges.
Daiwa expects GENSCRIPT BIO to achieve positive profitability by 2025 and to continue generating profits thereafter. The firm has lowered GENSCRIPT BIO's target price from HKD 28 to HKD 25, maintaining a "Buy" rating. Bank of China International noted that considering the spin-off of Legend Biotech, the firm used a discounted cash flow method to value GENSCRIPT, which will contribute additional equity free cash flow to GENSCRIPT. The target price was reduced from HKD 29 to HKD 21, maintaining a "Buy" rating
