Movement Alert|PHARMARON Rises 3.5% in Regular Trading, Convertible Bond Issuance Completed as Multiple Global Banks Increase Holdings

Market Focus09-03

On September 3, PHARMARON rose 3.5% in regular trading, trading at HK$29.74 per share, with turnover of HK$57.21 million.

On the news front, the company completed the issuance and settlement of its RMB 2.18 billion zero-coupon convertible bond on September 2, raising approximately US$327 million in net proceeds. Around 70% of the funds will be allocated to laboratory and CDMO business expansion, with approximately 20% earmarked for debt refinancing. The initial conversion price is set at HK$36.08 per H share. Previous market concerns over potential dilution from the convertible bond had weighed on the stock, and the completion of the issuance helped remove this overhang.

Meanwhile, multiple international investment banks have recently shown increased conviction in PHARMARON. Morgan Stanley purchased approximately 2.765 million shares on August 27 at an average price of HK$29.62 per share, raising its long position to 5.69%. JP Morgan also lifted its long position to 11.43%. Daiwa, Bank of America Securities, and Morgan Stanley have all raised their target prices to a range of HK$35.6 to HK$38.5, maintaining buy or overweight ratings, citing strong CDMO momentum and upgraded full-year revenue growth guidance of 15%-20%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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