STOCKS | WuXi AppTec Rises 4.8% As Goldman Sees Recovery In CRO/CDMO Sector

WuXi AppTec (02359) rose 4.8% to HK$197.9, with turnover of about 1.51 million shares worth HK$293 million, after touching an intraday high of HK$197.9 and a low of HK$186, according to ETNet. Goldman Sachs said second-quarter and first-half results showed a clear recovery in China's CRO/CDMO sector, with earnings beating expectations, guidance being raised and orders remaining strong. It rated WuXi AppTec, WuXi XDC Cayman (02268), CanSino Biologics? No, not in source. Goldman gave buy ratings to WuXi AppTec, WuXi XDC Cayman, Asymchem Laboratories (06821) and Pharmaron (03759), and a neutral rating to WuXi Biologics (02269). Goldman set target prices of HK$220.1 for WuXi AppTec, HK$97.9 for WuXi XDC Cayman, HK$55.8 for WuXi Biologics, HK$37.2 for Pharmaron, HK$168.2 for Asymchem Laboratories, HK$52.1 for Tigermed (03347) and HK$38.54 for GenScript Biotech (01548). The broker also said biotech companies turned profitable in the first half, while BD revenue and operating leverage were supported, drawing investor attention. It added that concerns over anti-corruption actions had eased, and it was more positive on Innovent Biologics (01801), Kelun-Biotech (06990), Keymed Biosciences (02162), GenFleet Therapeutics (02595) and Hansoh Pharmaceutical (03692), all of which it rated buy.