Qyuns Therapeutics Co., Ltd. (HKG:2509) About To Shift From Loss To Profit

Qyuns Therapeutics Co., Ltd. (HKG:2509) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Qyuns Therapeutics Co., Ltd., a clinical-stage biotech company, engages in the research and development of biologic therapies for autoimmune and allergic diseases in the People’s Republic of China. The HK$4.6b market-cap company’s loss lessened since it announced a CN¥336m loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥192m, as it approaches breakeven. Many investors are wondering about the rate at which Qyuns Therapeutics will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Qyuns Therapeutics is bordering on breakeven, according to the 2 Hong Kong Biotechs analysts. They expect the company to post a final loss in 2025, before turning a profit of CN¥193m in 2026. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 68% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Qyuns Therapeutics given that this is a high-level summary, but, bear in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

See our latest analysis for Qyuns Therapeutics

Before we wrap up, there’s one issue worth mentioning. Qyuns Therapeutics currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Qyuns Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Qyuns Therapeutics' company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

1. Historical Track Record: What has Qyuns Therapeutics' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Qyuns Therapeutics' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.