Everest Medicines (SEHK:1952) Loss Narrows To C¥249.8m Challenging Bearish Narratives

Everest Medicines (SEHK:1952) has reported its FY 2025 first half results with revenue of C¥446.1 million and a net loss of C¥249.8 million, translating to basic EPS of a C¥0.77 loss. The company’s revenue moved from C¥301.5 million in the first half of 2024 to C¥405.2 million in the second half of 2024, and then to C¥446.1 million in the first half of 2025. Over the same periods, net losses shifted from C¥632.4 million to C¥409.0 million and then to C¥249.8 million. Trailing twelve month revenue stands at about C¥1.7 billion, with a net loss of C¥297.8 million. For investors, the latest figures keep attention on how quickly margins may tighten and whether shrinking losses may lead to a more efficient earnings profile over time.

See our full analysis for Everest Medicines.

With the headline numbers on the table, the next step is to consider these results in the context of the prevailing growth and profitability stories investors have been following, to see which narratives appear consistent and which may warrant reassessment.

See what the community is saying about Everest Medicines

Losses Narrow From C¥632.4m To C¥249.8m

• Everest Medicines reported a net loss of C¥249.8 million in the first half of FY 2025, compared with losses of C¥408.0 million in the second half of FY 2024 and C¥632.4 million in the first half of FY 2024, while trailing 12 month losses sit at C¥297.8 million against C¥1.0 billion in the prior trailing data point.
• Supporters of the bullish view point to this pattern of shrinking losses and the cited 52.9% average annual loss reduction over five years as evidence that the business is moving along a path toward the forecast earnings growth of 80.87% per year and a return to profitability within three years.
  • That multi year loss reduction rate sits alongside trailing 12 month revenue of about C¥1.7b, which provides the revenue base bullish investors expect to benefit from products like NEFECON and VELSIPITY.
  • At the same time, the latest half still shows a C¥249.8 million loss, so the bullish case relies on the continuation of this loss reduction trend rather than current profitability.

Bulls argue this earnings trajectory could matter more for long term value than the latest half year loss, especially if key products ramp as expected. If you want to see how that optimistic case is built out in detail, 🐂 Everest Medicines Bull Case

Revenue At C¥446.1m, Forecast 19.6% Growth

• First half FY 2025 revenue of C¥446.1 million sits within trailing 12 month revenue of about C¥1.7b, and the supplied data cites forward revenue growth expectations of 19.6% per year, compared with an 8.2% per year benchmark for the wider Hong Kong market.
• Analysts taking a consensus style view link that 19.6% revenue growth forecast to broader expectations that profit margins could move from the current loss making position toward positive territory over the next few years, but the current C¥297.8 million trailing loss shows that any margin recovery is still at an early stage.
  • The consensus narrative highlights expanding access for therapies such as NEFECON and VELSIPITY across Asia as a potential driver for that revenue growth rate relative to the 8.2% market benchmark.
  • However, ongoing non IFRS net losses and spending to build commercial infrastructure, noted in the narrative, explain why profitability has not yet matched the scale of the revenue base.

P/S At 7x With DCF Value Above C$85.62

• On the valuation side, the data shows Everest Medicines trading on a P/S of 7x, compared with 29x for peers and 13.1x for the Hong Kong biotechs industry, while the referenced DCF fair value is HK$85.62 against a current share price of HK$38.20.
• Skeptics in the bearish narrative flag that even with forecasts for revenue growth of 53.9% per year and profit margins moving from a 77.4% loss to a 22.1% margin in three years, the business is still unprofitable today and depends heavily on a small set of in licensed assets and ongoing funding.
  • The gap between the 7x P/S multiple and the cited peer average of 29x, together with the difference between HK$38.20 and the HK$85.62 DCF fair value, is what bearish investors question, arguing that current unprofitability and reliance on external assets could justify a discount.
  • The same data showing a 52.9% multi year loss reduction and strong revenue forecasts is precisely what those bears scrutinize, since the investment case hinges on those projections turning into sustainable earnings rather than remaining losses around the current C¥297.8 million trailing level.

Critics focus on that gap between current unprofitability and the optimistic valuation signals. If you want to see how the more cautious case is put together, 🐻 Everest Medicines Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Everest Medicines on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both optimism and caution in the mix, it helps to move quickly and assess the facts for yourself rather than rely on headlines alone. To see in more detail what is driving that optimism, take a closer look at the 3 key rewards

See What Else Is Out There

Everest Medicines is still loss making, relies on a narrow set of assets, and carries valuation doubts despite forecasts for faster growth and margin improvement.

If that combination of ongoing losses and uncertainty around future earnings makes you cautious, it could be worth balancing your watchlist with 284 resilient stocks with low risk scores

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.

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