China's WuXi Biologics falls on lower revenue, Nomura's TP downgrade

WuXi XDC Cayman

05/12/2023 02:10

** Shares of WuXi Biologics (Cayman) Inc  2269.HK  fall as
much as 8.3% to HK$30.40, their lowest since March 2020
    ** Stock is the second-biggest pct loser in Hang Seng Index
 .HSI , Hang Seng Commerce & Industry Index  .HSNC  
    ** Co says biotech funding slowdown has resulted in the
annual growth rate of the biotech industry in the single digit,
a decline of revenue amid COVID-related projects and a
manufacturing delay of certain mega projects 
    ** Looking ahead, co believes that the group's gross profit
margin and growth rate have reached low points in 2023 and
expects a positive turnaround in the second half of 2024 - Co 
    ** WuXi says it maintains a positive outlook for the future
and aims to achieve a revenue growth of around 10% in 2023 
    ** Nomura maintains "buy" rating, cites further downside is
seen limited after the recent weakness 
    ** Brokerage trims target price to HK$58.44 from HK$82.69,
saying investors expect sector-wide headwinds but further
disappointed by the outlook cut 
    ** Citi keeps "buy" rating, but co's updated 2023 forecast
is disappointing 
    ** Hong Kong's healthcare index  .HSCIH  slips 0.4%, Hang
Seng Index  .HSI  eases 0.8%
    ** WuXi stock down 47.7% YTD 
    

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))