By Jason Chau
Shares of Chinese pharmaceutical major WuXi AppTec gained after its strong first-quarter earnings.
The company's Hong Kong-listed stock climbed over 17% to 148.00 Hong Kong dollars, equivalent to US$18.88, Tuesday morning before trimming some gains. Shares were up 15% at midday, reaching their highest level since December 2021 and on track for the largest single-day gain in 18 months.
Its Shanghai-listed stock also rose 10% in the morning session, marking its largest daily gain since Oct 2024.
The company's first-quarter net profit rose 27% on year to 4.65 billion yuan, it said in an exchange filing Monday. First-quarter revenue also jumped 29% on year to 12.44 billion yuan.
The drugmaker attributed the sharp earnings growth to an increase in clinical and commercial projects, which improved capacity utilization, as well as efforts to optimize production processes.
The company also cited its continued focus on strengthening its contract research, development, and manufacturing organization business model as a driver of sustained revenue growth, with rising order backlog reflecting growing customer demand.
"We view the quarterly results as quite robust," Nomura analyst Jialin Zhang said in a note. The quarterly results and backlog orders on hand "bode well for the company to achieve or even lift topline growth guidance," Zhang said.
Write to Jason Chau at jason.chau@wsj.com
(END) Dow Jones Newswires
04-28-26 0118ET
