Movement Alert|Pharmaron Rises 5.33% in Regular Trading, H1 Earnings Forecast Beats Expectations Amid CRO Order Recovery

Market Focus07-22

On July 22, Pharmaron rose 5.33% in regular trading, trading at 24.92 HKD/share, with turnover of approximately 75.31 million HKD.

On the news front, the company previously disclosed its H1 earnings forecast, projecting revenue of 7.47-7.67 billion yuan, up 16%-19% YoY, and attributable net profit of 729.5-771.5 million yuan, up 4%-10% YoY. Notably, newly signed orders surged over 30% YoY, with small-molecule CDMO new orders growing over 50% YoY. Q2 performance showed clear acceleration versus Q1, with Q2 adjusted non-IFRS net profit estimated to grow 22.3% YoY.

At the industry level, the CRO sector is experiencing a broad order recovery, with leading companies reporting backlog growth exceeding 40% YoY. Institutions believe the CXO rebound is supported by fundamentals. Additionally, JP Morgan increased its stake in Pharmaron by approximately 1.29 million shares on July 10, while Daiwa recently initiated coverage with a Buy rating and a target price of 25.5 HKD, citing robust CMC business growth prospects.

(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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