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Investing.com -- WuXi AppTec H shares (HK:2359) jumped more than 10% on Tuesday to their highest level in nearly five-years, as investors continued to cheer the Chinese drug research firm's stronger-than-expected first half earnings and robust U.S. business growth.
Shares rose 10.7% to HK$180.30 in Hong Kong, comfortably outperforming the Hang Seng Index, which slipped around 0.5%. The stock is now trading at its highest level since September 30, 2021.
WuXi AppTec reported first-half net profit attributable of 11.08 billion yuan, up 33.7% from a year earlier and well ahead of consensus expectations, while revenue climbed 38.9% to 28.9 billion yuan as demand strengthened across commercial drug programs.
Growth was underpinned by broad-based business momentum, particularly in the company's fast-growing TIDES division, which includes GLP-1 peptide manufacturing for obesity and diabetes therapies.
Revenue from the segment rose 44.3% from a year earlier to 7.26 billion yuan, reinforcing its position as one of the company's key growth engines.
The U.S. remained WuXi AppTec's largest market, with revenue climbing to 22.28 billion yuan in the first half from 14.24 billion yuan a year earlier, accounting for roughly 77% of total revenue despite ongoing geopolitical scrutiny of Chinese biotechnology companies.
Management reiterated its full-year guidance, continuing to expect revenue of 51.3 billion yuan to 53.0 billion yuan, with revenue from continuing operations projected to grow 18% to 22% year over year.
Chief Executive Li Ge reiterated that WuXi AppTec would continue defending its interests after the U.S. Department of Defense added the company to its Section 1260H list, saying the designation was "not supported by facts or law" and that the company believes the ongoing legal challenge will ultimately prevail.
