Undervalued Asian Biopharma Stocks: A Case for Hanall Biopharma and Strategic Peers

The Asian biopharma sector is undergoing a quiet revolution. Amid macroeconomic headwinds and regulatory shifts, a handful of companies are trading at significant discounts to their intrinsic values, offering compelling opportunities for long-term investors. This analysis examines Hanall Biopharma (KRX:009420), Sichuan Kelun-Biotech, and Giant Biogene Holding, three firms poised to capitalize on transformative trends in AI-driven drug discovery, regulatory harmonization, and precision medicine.

Hanall Biopharma: A High-Growth Paradox

Hanall Biopharma, a South Korean biotech firm, presents a striking case of market mispricing. Despite a P/E ratio of 784.1x-far exceeding its peers' averages-the stock trades at ₩34,500, or 40.8% below its estimated intrinsic value of ₩58,260.49, according to SimplyWall's valuation. This apparent contradiction reflects the market's skepticism about its high valuation metrics, such as a Price-to-Sales (P/S) ratio of 11.7x, versus the company's robust fundamentals. Analysts project earnings growth of 50% annually over the next three years, per a SimplyWall analysis, outpacing the Korean market's 23.6% average. Such growth is underpinned by Hanall's aggressive R&D spending and a pipeline of oncology and rare disease therapies.

A critical differentiator is Hanall's integration of artificial intelligence (AI) into its drug development. A 2025 collaboration with Galax to develop an AI-driven cancer antibody drug highlights its commitment to leveraging cutting-edge technology, as noted in a Chosun Biz report. This aligns with broader industry trends, where agentic AI and generative models are accelerating drug discovery and clinical trial efficiency, according to a Yseop analysis.

Sichuan Kelun-Biotech: Innovation Amid Losses

Sichuan Kelun-Biotech, a Chinese biopharma leader, trades at HK$514, or 26% below its estimated fair value of HK$694.37, according to a SimplyWall article. While the company reported a net loss of RMB145.2 million in H1 2025, this reflects heavy R&D investments-RMB611.5 million in the same period-to advance its pipeline of over 30 drug candidates, including TROP2 ADC therapies for lung cancer, according to a PR Newswire release. Revenue growth is projected at 35.1% annually, with analysts anticipating profitability within three years.

Kelun's strategic partnerships, such as its collaboration with MSD to expand clinical trials, underscore its global ambitions; the PR Newswire release also highlighted its commercialization infrastructure, including distribution in 2,000 hospitals, which further strengthens its competitive positioning.

Giant Biogene Holding: Synthetic Biology and Market Leadership

Giant Biogene Holding, a Hong Kong-listed firm, trades at HK$56.5, or 38.5% below its intrinsic value of HK$91.85, according to a Reuters report. The company's dominance in bioactive ingredient-based skincare and functional foods is driven by proprietary recombinant collagen and rare ginsenosides technologies, detailed on its investor relations site. In 2025, it raised $301 million through a top-up share offering, signaling investor confidence in its synthetic biology-driven growth strategy, per a BioPharma APAC report.

Giant Biogene's earnings growth of 27.9% in 2024 and a projected 17.3% CAGR-noted in the Reuters report-outpace the Hong Kong market's average, reflecting its ability to monetize its technological edge. Its alignment with APAC's shift toward precision medicine and AI-optimized production further enhances its long-term appeal.

Industry Trends: The APAC Biopharma Renaissance

The Asian biopharma sector is being reshaped by three megatrends:
1. AI-Driven Innovation: AI platforms are reducing R&D costs and timelines, with APAC leading in decentralized clinical trials and digital compliance tools, according to a BioPharma APAC report.
2. Regulatory Harmonization: Initiatives like the ASEAN Pharmaceutical Regulatory Policy are streamlining cross-border approvals, though disparities persist, the BioPharma APAC report notes.
3. Capital Efficiency: M&A activity is shifting toward later-stage assets, reflecting a focus on high-impact, capital-efficient deals, as described in McKinsey's pulse check.

These trends create a fertile ground for companies like Hanall, Kelun, and Giant Biogene, which are investing in AI, regulatory agility, and strategic partnerships to outperform peers.

Conclusion: A Case for Strategic Conviction

The undervaluation of these firms is not a reflection of their fundamentals but a mispricing of their long-term potential. Hanall Biopharma's AI-driven pipeline, Kelun's oncology focus, and Giant Biogene's synthetic biology expertise position them to benefit from APAC's biopharma renaissance. For investors with a multi-year horizon, these stocks offer a rare combination of intrinsic value discounts and high-growth trajectories.