Movement Alert|WUXI APPTEC Rises 3.54% in Regular Trading, US Court Grants Preliminary Injunction Suspending 1260H Designation Impact

Market Focus
Aug 10

On August 10, WUXI APPTEC rose 3.54% in regular trading, trading at 201.0 HKD/share, with turnover of HKD 425 million.

On the news front, the company announced on August 9 that the US District Court for the District of Columbia approved a preliminary injunction motion on August 7, prohibiting the US Department of Defense from enforcing or implementing its prior 1260H designation of the company, or taking any measures based on that designation, during the judicial proceedings. The company had filed suit on June 11 challenging its inclusion on the 1260H list and applied for the injunction on June 29. The ruling effectively alleviates market concerns over policy-related risks.

The injunction comes amid strong operational momentum. The company's interim results, released on August 3, showed first-half revenue of RMB 28.9 billion, up 38.93% year-over-year, with adjusted net profit of RMB 11.57 billion, surging 83.2% and marking the first time half-year profit exceeded RMB 10 billion. Full-year revenue guidance was raised to RMB 58.5-60.5 billion from RMB 51.3-53.0 billion. Multiple investment banks including Citi, Bank of America, and JP Morgan subsequently raised target prices.

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