Xiaomo: Kingsley Biotech (01548) shares rose against the market after sales, reaffirming the “gain” rating

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that the stock price of Kingsley Biotech (01548) reversed the market and rose more than 1% last Friday (11th), down 1.4% from the Hang Seng Healthcare Index on the same day. The bank expects continued AIDD order momentum, steady capacity utilization, and accelerated delivery cycles to maintain Kingsley Biotech's “gain” rating and target price of HK$41.

Xiaomo believes that the market is still keenly interested in Kingsley's AIDD (AIDD) business. The company recently announced an allotment of 2.35 billion yuan and a net raise of 2.33 billion yuan before the opening of the market last Friday. It will provide the necessary capital to expand the production capacity of AIDD-related wet laboratories and accelerate related R&D and digitalization. As a result, the bank maintained a positive view and advised investors to view recent weak stock prices as an opportunity to increase their holdings.

The bank quoted Kingsley's management as saying that it has viewed wet laboratory verification as a major bottleneck in business development. It is expected that AIDD related business will double in the second half of the year. The life science business revenue growth guide this year was raised to between 25% and 30%. The company's overall adjusted gross margin was higher than 55%, and the adjusted operating profit margin was higher than 25%.