<div id="readability-page-1"><div><h2>Why RemeGen’s latest earnings matter for investors</h2> <p>RemeGen (SEHK:9995) has just posted full year 2025 results, moving from a net loss to a net profit, with sales and earnings per share both higher than the previous year.</p> <p>See our latest analysis for RemeGen.</p> <p>That earnings turnaround appears to be reflected in the share price, with a 1-day share price return of 10.92% and a year-to-date share price return of 15.82%. The 1-year total shareholder return is also very large and suggests strong momentum despite some recent 90-day weakness.</p> <p>If RemeGen’s move has caught your attention, it could be a good moment to see what else is moving in healthcare, starting with our 119 healthcare AI stocks.</p> <p>With RemeGen now profitable and the share price already up strongly over 1 year, the key question is whether the current valuation still leaves room for upside or whether the market is already pricing in future growth.</p> <h2>Preferred P/E of 59.1x: Is it justified?</h2> <p>RemeGen trades on a P/E of 59.1x, which is high relative to several reference points. This suggests the current HK$85.3 share price already reflects strong earnings expectations.</p> <p>The P/E multiple compares the current share price to earnings per share and is commonly used for profitable biopharma names to gauge how much investors are paying for each unit of earnings. With RemeGen now profitable and earnings expected to grow 23.8% per year, a higher multiple can be associated with expectations for continued profit growth and high returns on equity.</p> <p>Compared to the estimated fair P/E of 31.4x from the SWS fair ratio model, RemeGen’s 59.1x looks rich. The gap is large enough that the market could move closer to that fair level if sentiment or earnings surprise changes. The same pattern shows up against the Asian Biotechs industry average P/E of 37.6x, where RemeGen’s higher multiple suggests investors are paying a premium to the sector and already recognise its 30.5% return on equity and forecast earnings growth.</p> <p>Explore the SWS fair ratio for RemeGen</p> <p><strong>Result: Price-to-earnings of 59.1x (OVERVALUED)</strong></p> <p>However, there are still clear risks, including any setback in key drug programmes or a shift in sentiment if high P/E expectations start to look stretched.</p> <p>Find out about the key risks to this RemeGen narrative.</p> <h2>Another view from the SWS DCF model</h2> <p>The picture changes when you look at our DCF model. On this approach, RemeGen’s estimated future cash flow value sits at HK$128.56, compared with the current HK$85.3 price, suggesting the shares trade at a 33.6% discount. So which signal do you trust more: rich earnings multiple or discounted cash flows?</p> <p>Look into how the SWS DCF model arrives at its fair value.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/d8925f4e-6869-4d4b-b13c-794198898df9/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTA2?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/d8925f4e-6869-4d4b-b13c-794198898df9/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTA2"/><figcaption>9995 Discounted Cash Flow as at Mar 2026</figcaption></figure><p>Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out RemeGen for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 218 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.</p> <h2>Next Steps</h2> <p>If this mix of strong recent results, rich multiples and DCF upside feels like a lot to process, review the underlying data and decide where you stand, starting with 3 key rewards and 2 important warning signs.</p> <h2>Looking for more investment ideas?</h2> <p>If you stop with just one stock, you could miss other opportunities, so use the Simply Wall St screener to compare different ideas before you commit.</p> <ul> <li>Spot potential bargains by scanning our 218 high quality undervalued stocks, which combines quality fundamentals with attractive pricing signals based on current metrics.</li> <li>Strengthen your income focus by checking out 462 dividend fortresses, featuring companies with higher dividend yields that might suit a cash flow focused portfolio.</li> <li>Prioritise resilience by reviewing our 307 resilient stocks with low risk scores, highlighting companies with lower risk scores that could help balance out more volatile holdings.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><div><h3><strong>New: </strong>AI Stock Screener &amp; Alerts</h3><p>Our new AI Stock Screener scans the market every day to uncover opportunities.</p><div><p>• Dividend Powerhouses (3%+ Yield)<br/>• Undervalued Small Caps with Insider Buying<br/>• High growth Tech and AI Companies</p><p>Or build your own from over 50 metrics.</p></div><p>Explore Now for Free</p></div></div></div>

09995

688331

<p>RemeGen (SEHK:9995) has reported a significant turnaround, moving from a net loss to a net profit for the full year 2025, with sales and earnings per share surpassing the previous year. The stock has seen a 10.92% increase in one day and a 15.82% rise year-to-date. However, its P/E ratio of 59.1x is considered high compared to the estimated fair P/E of 31.4x, indicating potential overvaluation. A DCF analysis suggests a fair value of HK$128.56, indicating a 33.6% discount at the current price of HK$85.3. Investors should weigh the high multiples against future cash flow potential and associated risks.</p>

A Look At RemeGen’s Valuation After Its Strong Full Year Profit Turnaround