By Yifan Wang
Shares of Wuxi Biologics (Cayman) Inc. rose sharply in Wednesday morning trade in Hong Kong, as investor sentiment was boosted by the firm's upbeat earnings guidance and progress on China's Covid-19 vaccine development.
The biotech company's shares surged as much as 16%, touching a record high of 233 Hong Kong dollars (US$30.06) and driving its market capitalization over HK$300 billion for the first time.
The company raised its revenue growth guidance for 2021 to 50% in a recent business update conference call, buoying investor and analyst optimism on its outlook.
Wuxi Biologics also introduced its new strategy of focusing more on late-stage projects, which U.S. investment bank Goldman Sachs expects to become a new growth engine for the firm.
Brokerage Daiwa Capital points to Wuxi's strong contract wins in Covid-19-related areas. "We believe Wuxi Bio will continue to benefit from its growing global competency during the Covid-19 pandemic," it said in a research note.
The company's share price surge also came as Chinese authorities on Tuesday provided an upbeat update on the country's vaccine development, projecting annual production capacity to reach 610 million units by year-end.
Wuxi Biologics shares were last up 12% at HK$225.00.
Write to Yifan Wang at firstname.lastname@example.org
(END) Dow Jones Newswires