GTHT Maintains "Overweight" Rating on GENSCRIPT BIO (01548), Cites Innovation-Driven Growth

Stock News11-21

GTHT has reiterated its "Overweight" rating on GENSCRIPT BIO (01548), with a target price of HKD 26.21 per share. The company's core strategy revolves around "technology-driven innovation" and "global expansion," supported by clear long-term revenue growth targets and well-defined growth pathways across business segments. GTHT remains optimistic about GENSCRIPT BIO's long-term prospects.

**Key Highlights:** 1. **Strategic Vision:** GENSCRIPT BIO aims to establish itself as the global leader in biopharmaceutical services (antibody drugs, gene & cell therapy) and synthetic biology solutions. 2. **Growth Drivers:** The company plans to strengthen its foundational businesses—life sciences, biopharma CRDMO, and synthetic biology—to ensure steady cash flow and profitability. It will also leverage core technological advantages to accelerate product commercialization and high-value licensing deals, creating new growth engines. 3. **Financial Targets:** By 2035, GENSCRIPT BIO targets USD 3 billion in revenue with an operating margin exceeding 20%.

**Business Segment Outlook:** - **Gene & Plasmid Business:** Already a market leader, the company aims to expand downstream applications and enhance business potential. - **Antibody Protein Business:** Focused on strengthening competitiveness, capturing the top market position, and exploring non-outsourcing markets with innovative instruments and solutions. - **Biologics CDMO:** Plans to capitalize on China's biotech rebound, accumulate projects and capabilities, strengthen sales in Europe and the U.S., and expand high-margin revenue streams.

**Growth Initiatives:** GENSCRIPT BIO seeks to integrate group capabilities (life sciences +蓬勃生物) to offer one-stop solutions, accelerate product transformation, and target high-margin opportunities in enzymes (e.g., starch sugar, alcohol, home care). It also explores disruptive opportunities in licensed products like the CD3 platform and cyclic peptides, as well as innovative proteins/enzymes like sweet proteins and universal nucleases.

**Valuation & Rating:** Using a sum-of-the-parts valuation, GTHT forecasts 2025–2027 revenues for core segments at USD 939M, USD 825M, and USD 961M, with YoY growth of 58%, -12%, and 16%, respectively. Applying a 6x P/S multiple to 2026 revenue, the core business valuation stands at RMB 35.2 billion. Including the fair value of its stake in Legend Biotech (USD 170M as of November 20, 2025), the target price is set at HKD 26.21 per share.

**Risks:** Potential risks include a global biopharma R&D downturn, slower-than-expected licensing progress, intensifying competition, and macro-geopolitical uncertainties.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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