On September 14, WUXI APPTEC rose 3.12% in regular trading, trading at 194.9 HKD/share, with turnover of 151 million HKD. The gain came amid a broad rally across the Life Sciences Tools & Services sector, with peers PHARMARON up 5.88%, GENSCRIPT BIO up 3.34%, and WUXI BIO up 3.06%.
The sector-wide strength follows a wave of bullish institutional coverage on the CRO/CDMO industry. Goldman Sachs recently highlighted that the sector's recovery is broadening, with WUXI APPTEC's backlog reaching RMB 66.43 billion, up 25.2% year-over-year, and full-year revenue growth guidance raised to 35%-39%. Morgan Stanley maintained an Overweight rating and lifted the target price to 220 HKD, citing improved earnings visibility. Meanwhile, the company announced early redemption of its outstanding RMB 4.973 billion zero-coupon convertible bonds due 2027, signaling management confidence in its cash position and operational outlook.
Additionally, the company raised its mid-term dividend to RMB 1.51 billion and increased adjusted free cash flow guidance to RMB 13.5-14.5 billion, underscoring robust cash generation quality.
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