WuXi AppTec's Hong Kong-listed shares rose 4.6% after reporting impressive first-half earnings of CNY5.31 billion ($743.4 million). Revenue increased by 6.3% driven by strong demand from long-tail customers.
WuXi AppTec, the Chinese pharmaceutical company, saw a surge in its shares on Tuesday following the announcement of its impressive first-half earnings. The company's Hong Kong-listed shares rose by 4.6% to HK$76.90 (US$9.86), reaching an intraday high of HK$78.45, the highest level since June 2020.
According to FactSet, WuXi AppTec reported a net profit of CNY5.31 billion ($743.4 million) for the first half of the year, compared to CNY4.64 billion in the same period last year. Additionally, first-half revenue increased by 6.3% to CNY18.87 billion, driven by growth in the chemistry segment. The company's management highlighted the strong demand from long-tail customers in small molecule, oligo, and peptide discovery.
Analyst John Yung from Citigroup expressed confidence in WuXi AppTec's future performance, maintaining a buy rating on the company's H-shares. He also affirmed a target price of HK$185.00 and reiterated his 2023 revenue growth guidance of 5-7%. Yung particularly emphasized his belief in the company's margin improvement and cash flow.
Overall, WuXi AppTec's strong first-half earnings results have positioned the company for continued success in the pharmaceutical industry.
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