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Origin Agritech Limited (SEED)
NASDAQ:SEED
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Origin Agritech (SEED) AI Stock Analysis

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SEED

Origin Agritech

(NASDAQ:SEED)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
$1.50
▲(4.90% Upside)
The overall stock score is primarily impacted by significant financial challenges, including negative equity and cash flow issues. While technical indicators show some short-term bullish momentum, the negative P/E ratio and lack of dividend yield further weigh on the stock's attractiveness.

Origin Agritech (SEED) vs. SPDR S&P 500 ETF (SPY)

Origin Agritech Business Overview & Revenue Model

Company DescriptionOrigin Agritech Limited, together with its subsidiaries, operates an agricultural biotechnology and an e-commerce platform in the People's Republic of China. The company engages in crop seed breeding and genetic improvement activities. It develops, produces, and distributes hybrid crop seeds, as well as develops hybrid seed technology. The company also operates an e-commerce platform, which provides range of products, including agricultural seed products that comprise corn, rice, and vegetable seeds; other agricultural inputs, such as fertilizers and agricultural chemicals; foods; household products; and other consumer products to farmers through online and mobile ordering. It has a collaboration agreement with Chinese Academy of Agricultural Sciences, the National Maize Improvement Center, China Agricultural University, and Zhejiang University. Origin Agritech Limited was founded in 1997 and is headquartered in Beijing, China.
How the Company Makes MoneyOrigin Agritech generates revenue primarily through the sale of genetically modified seeds and other agricultural products. The company's revenue model is based on the commercialization of its proprietary seed technology, which allows it to charge premium prices for its high-yield, pest-resistant seeds. Key revenue streams include direct sales to farmers, licensing agreements for its biotechnology innovations, and potential partnerships with agricultural companies for product development and distribution. Additionally, the company may benefit from government subsidies and incentives aimed at promoting agricultural advancements and biotechnology in China, contributing further to its earnings.

Origin Agritech Earnings Call Summary

Earnings Call Date:Jun 26, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Jan 12, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and technological advancements, such as the GMO safety certificate and gene editing breakthroughs. However, these were tempered by challenges including decreased net income and increased expenses.
Q4-2024 Updates
Positive Updates
Revenue Growth
Origin Agritech achieved a revenue of $16.2 million in fiscal year 2024, representing a 24.6% increase from the previous year.
GMO Safety Certificate
Received a GMO safety certificate for BBL2-2 transgenic maize, enhancing insect resistance and herbicide tolerance.
Gene Editing Breakthrough
Published breakthrough in induction line gene editing technology, allowing for faster development of improved maize traits.
New Product Pipeline
Eight new varieties launching in 2025, targeting different regions with several more in advanced trials.
Increased R&D Investment
R&D investment increased to $1.5 million from $1 million, advancing biotechnology platforms and developing new seed varieties.
Negative Updates
Decreased Net Income
Net income from continuing operations was $2.7 million, down from $8.7 million in the prior year due to one-time gains.
Increased General and Administrative Expenses
General and administrative expenses rose to $5.1 million from $1.99 million, driven by investments in talent and systems.
Reduced Cash Position
Cash and cash equivalents decreased to $1.2 million from $3.3 million the previous year.
Company Guidance
During the Origin Agritech Fiscal Year 2024 Earnings Conference Call, CEO Weibin Yan and CFO Patrick Cheng presented a comprehensive update on the company's financial and strategic performance. The company reported a 24.6% increase in revenue, reaching $16.2 million, primarily driven by increased corn seed sales. Origin Agritech achieved significant milestones, including obtaining a GMO safety certificate for their BBL2-2 transgenic maize and advancing gene editing technology. While general and administrative expenses rose to $5.1 million, reflecting investments in talent and systems, R&D spending also increased to $1.5 million. The company's net income from continuing operations was $2.7 million, down from the previous year's $8.7 million due to one-time gains from subsidiary disposals. With $1.2 million in cash and cash equivalents, Origin Agritech aims for cash flow breakeven and plans further expansion, targeting a top-five position in China's corn seed industry by 2030-2032. The call emphasized the company's strategic roadmap and confidence in achieving long-term growth and profitability through biotechnology innovation and expanded seed offerings.

Origin Agritech Financial Statement Overview

Summary
Origin Agritech faces substantial financial challenges, including inconsistent revenue growth, negative stockholders' equity, high leverage, and negative cash flows. These issues indicate significant financial instability and operational inefficiencies.
Income Statement
35
Negative
Origin Agritech has shown inconsistent revenue growth with significant fluctuations in net income. Despite a positive net income in the latest period, the company has experienced negative EBIT and volatile EBITDA margins, indicating operational challenges.
Balance Sheet
20
Very Negative
The company exhibits a negative stockholders' equity, reflecting a concerning financial position. The high debt-to-equity ratio indicates significant leverage, posing potential risks to financial stability.
Cash Flow
25
Negative
Origin Agritech has struggled with negative free cash flow and operating cash flow, reflecting challenges in generating cash from operations. The company's reliance on financing activities to manage cash flow needs further highlights cash management issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue93.68M113.38M93.31M52.58M46.42M52.51M
Gross Profit6.46M16.07M17.25M16.19M12.81M3.51M
EBITDA-62.20M23.08M67.84M-8.99M-59.77M-86.01M
Net Income-6.23M20.71M55.33M-6.26M-91.53M-102.84M
Balance Sheet
Total Assets88.71M131.56M238.51M135.96M119.04M254.88M
Cash, Cash Equivalents and Short-Term Investments2.40M8.38M23.71M17.67M15.35M22.48M
Total Debt21.73M5.08M241.00K139.28M140.77M140.89M
Total Liabilities151.36M190.16M319.77M308.60M304.64M340.35M
Stockholders Equity-31.16M-31.29M-57.40M-133.87M-140.67M-77.19M
Cash Flow
Free Cash Flow-22.84M-20.00M-17.66M2.67M-26.79M-5.62M
Operating Cash Flow-14.71M-15.03M-5.46M3.29M-25.08M-5.62M
Investing Cash Flow-8.13M-4.97M-11.22M-1.10M-1.21M-42.24M
Financing Cash Flow15.05M4.50M22.93M-332.00K19.84M65.92M

Origin Agritech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.43
Price Trends
50DMA
1.10
Positive
100DMA
1.09
Positive
200DMA
1.49
Negative
Market Momentum
MACD
0.08
Negative
RSI
64.71
Neutral
STOCH
79.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEED, the sentiment is Positive. The current price of 1.43 is above the 20-day moving average (MA) of 1.17, above the 50-day MA of 1.10, and below the 200-day MA of 1.49, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 79.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEED.

Origin Agritech Risk Analysis

Origin Agritech disclosed 53 risk factors in its most recent earnings report. Origin Agritech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Origin Agritech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$974.20M11.0828.37%9.78%8.15%77.68%
62
Neutral
$85.91M193.48-3.00%-28.28%-1718.93%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
55
Neutral
$156.66M-42.97%0.78%-9.57%-3226.39%
46
Neutral
$9.94M2.75-21.82%-104.92%
45
Neutral
$4.74M-87.18%1.50%-8.01%
44
Neutral
$211.75M-69.68%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SEED
Origin Agritech
1.43
-1.78
-55.45%
AVD
American Vanguard
5.42
0.32
6.27%
UAN
CVR Partners
92.97
30.92
49.83%
RKDA
Arcadia Biosciences
3.47
0.57
19.66%
BIOX
Bioceres Crop Solutions
1.34
-6.32
-82.51%
LVRO
Lavoro Limited
1.86
-1.80
-49.18%

Origin Agritech Corporate Events

Origin Agritech Announces Board Changes with New Appointments and Resignations
Sep 12, 2025

On September 12, 2025, Origin Agritech Limited announced the appointment of Dr. Changqing Mao and Mr. Siu Laam Hau as independent board members, bringing extensive experience in agriculture and corporate finance, respectively. Concurrently, the company saw the resignation of Ms. Fei Wang, Dr. Michael Trimble, Dr. Min Lin, and Mr. Chi Kin Cheng from their positions as directors, with Mr. Cheng continuing as Chief Financial Officer. These changes in the board composition may influence the company’s strategic direction and governance.

Origin Agritech Reports Significant Losses Amid Production Challenges
Jun 26, 2025

Origin Agritech Limited reported its unaudited financial results for the first half of FY2025, ending March 31, 2025. The company experienced a decline in net revenue to RMB72.3 million (US$10.1 million) from RMB92.0 million in the previous year, primarily due to halted production lines at its Xinjiang factory for equipment upgrades and technical renovations. This led to reduced production capacity and decreased sales of some proprietary products. Operating expenses rose significantly by 144% to RMB32.8 million, driven by increased general and administrative costs and research and development expenses for new products. Consequently, the company recorded a net loss of RMB25.6 million (US$3.6 million) compared to a net profit of RMB1.4 million a year ago, with a loss per ordinary share of RMB3.55 (US$0.5).

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.Date of analysis: Oct 02, 2025