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Suzhou Ribo Life Science (SEHK:6938) has drawn attention after a 5.4% one day decline to HK$70.05, extending a one month return of a 7.9% decline and a year to date return of a 14.7% decline.
For context, the company focuses on researching and developing small nucleic acid drugs targeting cardiovascular, metabolic, renal, liver and other diseases, with several candidates in Phase I, Phase II and preclinical trials.
See our latest analysis for Suzhou Ribo Life Science.
The recent 1 day share price return of a 5.4% decline to HK$70.05 comes after a 30 day share price return of a 7.9% decline and a year to date share price return of a 14.7% decline, which points to fading momentum despite a slightly positive 7 day share price return.
If this has you reassessing where you look for growth ideas, it could be a good moment to scan our screener of 107 healthcare AI stocks as a starting list of candidates.
With Suzhou Ribo Life Science still loss making on revenue of CN¥180.135m, and the share price under pressure this year, you might ask yourself: is there an undervalued growth story here, or is the market already pricing in future progress?
The usual quick check for many biotech names is the P/B ratio, but for Suzhou Ribo Life Science that shortcut does not really work. The company currently has negative equity, which produces a P/B ratio of -180.7x, compared with an average of 4.4x for the Hong Kong biotechs industry and 30.4x for its peer group.
A negative P/B figure is more a red flag on the balance sheet structure than a meaningful pricing signal. It reflects that liabilities exceed accounting equity, so comparing -180.7x to industry or peer averages does not indicate whether the current HK$70.05 share price is cheap or expensive on this metric.
In situations like this, investors often focus less on P/B and more on other building blocks, such as revenue momentum, funding mix and the path toward profitability. Here, the company is still loss making, reports all of its liabilities from higher risk borrowing, yet has grown revenue by 153.9% over the past year. This creates a very different set of questions to work through than a simple multiple comparison.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-book of -180.7x (ABOUT RIGHT)
However, you still have to weigh risks such as ongoing CN¥220.731m net losses and reliance on clinical trial progress that may not meet expectations.