Zai Lab Limited, a biopharmaceutical company, focuses on discovering, developing, and commercializing products that address medical conditions in the areas of oncology, immunology, neuroscience, and infectious diseases.
FAIL · Does not pass the screen
26.03 USD
At the last full screen 2026-08-26
Screened 2026-08-26 · the tape above runs as of 22:12 UTC · 11 Sep · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its markdown label.
Zai Lab Limited holds its Markdown at $26.03. The statistical read favours the sellers, held for 178 days.
As held on the ledger · 2026-08-26
Phase
Markdown · caution
Quantitative state
The statistical read favours the sellers, held for 178 days
Price at the screen
$26.03
Valuation
N/A trailing · -12.63 forward price to earnings
Values screen
FAIL· score 70.0
Beta
0.78
The Workings
Five Screens, Shown in Full
Does not pass. Accounts receivable
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
19.13%
Below 33%
Interest-bearing debt is just 19.1% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
0.85%
Below 33%
Cash held in interest-bearing accounts and securities is 0.9% of assets, under the one-third limit.
Pass
Receivables
67.02%
Below 49%
Money owed to the company is 67.0% of assets, above the 49% limit.
Fail
Revenue purity
7.18%
Below 5%
7.2% of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-08-26 screen. The gold marker is the market price at the same screen. A 8.6% margin of safety to the base estimate.
Third-party analyst targets: 12 covering, consensus Strong Buy. The average target sits +9% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-08-26 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
China Biotech Dreams Meet Harsh Profit Reality
Picture a lab in Shanghai racing to bring new cancer drugs to patients across Asia. Zai Lab looks like it could deliver real treatments in oncology and immunology. Yet the numbers tell a different story right now, with revenue shrinking 6 percent and margins stuck at minus 39 percent.
We pass despite the 46 percent gap between the current price near 20 dollars and our fair value. Negative forward earnings, a 24 percent negative return on equity, and unknown competitive protection outweigh the analyst consensus for upside. The ethical screen clears, but that alone does not create an opportunity.
China regulatory shifts and the usual biotech trial setbacks add real volatility to any recovery path. Losses this deep often take longer to turn than models suggest. Analysis, not advice.
The risks · The things to watch: its business and earnings are exposed to China and to currency swings; as a biotechnology name, trial and regulatory outcomes can move it sharply either way.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
ZLAB trades on Nasdaq (the company is based in China). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-08-19Markup · changed$23.32+36.6%Entry 4
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 36.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 57%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it strong buy, with a mean price target of $34.
2026-07-18Distribution$17.07+0.0%Entry 3
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 57%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (12 analysts) rates it strong buy, with a mean price target of $34.
2026-07-03Distribution$17.07+0.0%Entry 2
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows modest positive risk-adjusted returns.
2026-07-02Distribution$17.07Entry 1
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows modest positive risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
