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Zai Lab Ltd
(9688)
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Rating:52Neutral
Price Target:
HK$19.00
▲(4.00% Upside)
Action:Reiterated
Date:08/09/26
The score is primarily held back by weak financial performance—sharp TTM revenue contraction, continued losses, and ongoing cash burn—despite acceptable gross margins and a not-overly-levered balance sheet. Technicals are a key offset, with price trading above major moving averages and positive momentum indicators. Valuation remains constrained by negative earnings and no provided dividend yield.
Positive Factors
Solid Gross Margin
A gross margin near 58% indicates that marketed products generate meaningful economics before operating costs. If maintained, this provides a foundation for absorbing development and commercialization expenses, supporting eventual operating leverage as the portfolio and revenue base scale.
Negative Factors
Persistent Losses
Deep net losses and negative returns on equity show that the current operating model has not yet converted product activity into sustainable profitability. Until earnings improve, Zai Lab must rely on balance-sheet capacity and continued execution to fund its business.
Read all positive and negative factors
Positive Factors
Negative Factors
Solid Gross Margin
A gross margin near 58% indicates that marketed products generate meaningful economics before operating costs. If maintained, this provides a foundation for absorbing development and commercialization expenses, supporting eventual operating leverage as the portfolio and revenue base scale.
Read all positive factors
Zai Lab Ltd (9688) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$21.51B
Dividend YieldN/A
Average Volume (3M)10.26M
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth5.38%
EPS Growth16.86%
CountryHK
Employees1,784
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.17
Shares Outstanding1,137,828,000
10 Day Avg. Volume6,839,453
30 Day Avg. Volume10,261,856
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)2.68
Price to Sales (P/S)4.17
P/FCF Ratio-12.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$24.91Price Target Upside36.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-1.74
Revenue Forecast (FY)HK$3.36B
Zai Lab Ltd Business Overview & Revenue Model
Company Description
Zai Lab Limited, established in 2013 and based in Shanghai, China, is a biopharmaceutical company dedicated to developing and bringing to market innovative medical treatments. Its core focus spans oncology, autoimmune diseases, infectious diseases...
How the Company Makes Money
Zai Lab makes money primarily by commercializing prescription medicines and recognizing product sales revenue from those marketed products. In addition to direct product revenue, the company can generate revenue from collaboration and licensing ar...
Zai Lab Ltd Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 449.20M | 460.84M | 398.99M | 266.72M | 215.04M | 144.31M |
| Gross Profit | 253.66M | 269.47M | 251.13M | 170.90M | 141.02M | 92.07M |
| EBITDA | -204.08M | -205.89M | -242.99M | -365.11M | -384.66M | -689.46M |
| Net Income | -188.02M | -175.80M | -257.10M | -334.62M | -481.99M | -692.44M |
Balance Sheet | ||||||
| Total Assets | 1.07B | 1.17B | 1.19B | 1.04B | 1.22B | 1.61B |
| Cash, Cash Equivalents and Short-Term Investments | 617.52M | 789.47M | 779.67M | 806.45M | 1.01B | 1.41B |
| Total Debt | 254.58M | 224.26M | 153.47M | 15.15M | 20.39M | 15.54M |
| Total Liabilities | 467.76M | 456.82M | 344.86M | 240.18M | 174.54M | 230.00M |
| Stockholders Equity | 607.04M | 715.41M | 840.90M | 796.12M | 1.05B | 1.38B |
Cash Flow | ||||||
| Free Cash Flow | -134.75M | -159.13M | -276.39M | -206.67M | -392.63M | -568.18M |
| Operating Cash Flow | -127.33M | -151.01M | -214.87M | -198.18M | -367.64M | -549.23M |
| Investing Cash Flow | -39.36M | 308.32M | -375.19M | -10.78M | 420.02M | 249.96M |
| Financing Cash Flow | 38.30M | 72.46M | 349.89M | -6.43M | -1.73M | 820.20M |
Zai Lab Ltd Technical Analysis
Positive
18.27
Price Trends
17.61
Positive
16.25
Positive
15.50
Positive
Market Momentum
0.53
Positive
48.22
Neutral
16.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9688, the sentiment is Positive. The current price of 18.27 is below the 20-day moving average (MA) of 20.10, above the 50-day MA of 17.61, and above the 200-day MA of 15.50, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 16.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9688.
Zai Lab Ltd Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$20.24B | 22.26 | 12.35% | ― | 117.39% | ― | |
58 Neutral | HK$9.50B | -144.93 | -1.02% | ― | 192.64% | 92.31% | |
52 Neutral | HK$21.51B | -13.86 | -27.40% | ― | 5.38% | 16.86% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | HK$9.10B | -18.29 | -43.54% | ― | 116.67% | -0.42% | |
45 Neutral | HK$11.63B | -6.89 | -153.78% | ― | 70.26% | -12.79% | |
44 Neutral | HK$7.46B | -66.76 | -9.49% | ― | 68.12% | 81.84% |
* Healthcare Sector Average
HK:9688
Zai Lab Ltd
18.94
-6.08
-24.30%
HK:9969
InnoCare Pharma Ltd.
13.54
-4.27
-23.98%
HK:1952
Everest Medicines Ltd.
26.82
-31.38
-53.92%
HK:2171
CARsgen Therapeutics Holdings Ltd.
12.55
-8.99
-41.74%
HK:2616
CStone Pharmaceuticals
5.79
-4.56
-44.11%
HK:6855
Ascentage Pharma Group International
31.38
-44.77
-58.79%
Zai Lab Ltd Corporate Events
Zai Lab Grants New Restricted Share Units Under 2024 Equity Incentive Plan
Sep 11, 2026
Zai Lab Limited has granted 15,600 restricted share units, representing 156,000 underlying shares, to six employee participants under its 2024 Equity Incentive Plan at no purchase price. The awards will vest in four equal annual tranches over four...
Zai Lab’s Interim Results Show Lower Revenue but Rising R&D Investment
Aug 25, 2026
Zai Lab reported unaudited interim results for the six months ended June 30, 2026, showing a 6% decline in net product revenue to $201.3 million, mainly due to weaker sales of ZEJULA following volume-based procurement for generic olaparib and lowe...
Zai Lab to Align Hong Kong Interim Results With Previously Filed U.S. Financials
Aug 13, 2026
Zai Lab Limited has announced that its Audit Committee will meet on August 25–26, 2026 to consider and approve the unaudited condensed consolidated interim results for the six months ended June 30, 2026, in line with Hong Kong listing requir...
Zai Lab Grants New Employee Share Options and Restricted Units Under 2024 Plan
Aug 11, 2026
Zai Lab Limited has granted share options and restricted share units under its 2024 Equity Incentive Plan as part of ongoing efforts to incentivize key employees and align compensation with long-term company performance. The awards include 1,000 A...
Zai Lab’s Q2 Revenue Climbs as Oncology and Immunology Pipeline Nears Key Milestones
Aug 6, 2026
Zai Lab reported unaudited second-quarter 2026 results prepared under U.S. GAAP, with total revenue of $106.3 million and an 11% quarter-on-quarter rise in net product revenue, driven by stabilization of ZEJULA and strong volume growth for VYVGART...
Zai Lab Files Latest Quarterly Report with U.S. Regulator
Aug 6, 2026
Zai Lab Limited has announced that it filed its Quarterly Report on Form 10-Q for the period ended June 30, 2026 with the U.S. Securities and Exchange Commission, in line with its regulatory obligations as a dual-listed company. The filing undersc...
Zai Lab Sets August 6 Date to Approve and Publish 2026 Interim Results
Jul 24, 2026
Zai Lab Limited said its audit committee will meet on August 6, 2026 to consider and approve the unaudited interim results for the three and six months ended June 30, 2026, prepared in accordance with U.S. GAAP and SEC rules. If approved, the resu...
Zai Lab Grants New Share Options and RSUs Under 2024 Equity Plan
Jul 3, 2026
Zai Lab Limited has granted new share options and restricted share units under its 2024 Equity Incentive Plan, issuing options over 20,000 shares to one employee and RSUs over 848,930 shares to four grantees, including Chairperson and CEO Dr. Sama...
Zai Lab awards US$400,000 in restricted shares to each board director
Jun 22, 2026
Zai Lab Limited has granted 178,968 restricted share American depositary shares (ADSs), representing 1,789,680 underlying shares, to eight members of its board under its 2024 Equity Incentive Plan. Each director received awards equivalent to US$40...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.