WuXi AppTec H shares (HK:2359) rallied sharply on Tuesday, jumping 10.7% to HK$180.30 in Hong Kong as investors reacted to a better-than-expected first half and continued momentum across the company’s business lines. The gain left the stock trading at its highest level since September 30, 2021, and well ahead of the Hang Seng Index, which slipped about 0.5% on the same trading day.
The company reported first-half net profit attributable of 11.08 billion yuan, an increase of 33.7% from the prior year. Revenue for the six-month period rose 38.9% to 28.9 billion yuan, reflecting stronger demand across commercial drug programs and an expanding portfolio of service offerings.
A central contributor to the performance was the fast-growing TIDES division, which handles peptide manufacturing including GLP-1 therapies for obesity and diabetes. Revenue from that segment climbed 44.3% year over year to 7.26 billion yuan, underscoring its role as a key growth engine within the business.
The U.S. market continued to be the dominant source of sales for WuXi AppTec. First-half revenue from the United States rose to 22.28 billion yuan from 14.24 billion yuan a year earlier, representing roughly 77% of the company’s total revenue despite ongoing geopolitical scrutiny facing some Chinese biotechnology firms.
Management maintained the company’s full-year revenue guidance, reiterating expectations for total revenue of 51.3 billion yuan to 53.0 billion yuan. The firm continues to project that revenue from continuing operations will grow in the range of 18% to 22% year over year.
On the regulatory front, Chief Executive Li Ge reiterated that WuXi AppTec will defend its interests after the U.S. Department of Defense added the company to its Section 1260H list. Management described the designation as "not supported by facts or law" and said the company believes the ongoing legal challenge "will ultimately prevail."
The combination of stronger-than-expected financial results, accelerating sales in the TIDES peptide business and outsized exposure to the U.S. market helped propel the shares higher and pushed investor focus toward the company’s execution across commercial programs.