Broader Mkt Hikes and Makes Small Mth-high; WUXI XDC (02268.HK) IPO in FocusFinancial News

Francis Kwok, Vice Chairman of Hong Kong Institute of Financial Analysts and Professional Commentators, highlighted that the market rebounded sharply yesterday (15 Nov). HSI opened sharply higher by 427 points to 17,836 in the morning, and then saw-sawed slightly to 17,766. However, since the selling pressure was not obvious, and the buying forces continued to emerge, the whole market eventually went up further to 18,102 before being subjected to restriction.

Technically speaking, after yesterday’s sharp rise, the HSI has not only risen away from the low of 16,979 on 1 November, but also slightly risen above the high of 18,037 on 6 November. He thinks the situation looks favourable for the short-term market to potentially test the top again. A break above 18,038 means the market will further look for new highs in November, and more importantly, the market can break a 3-month losing streak.

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Additionally, Kwok commented that WUXI XDC (02268.HK) is a leading contract research, development and manufacturing organisation (CRDMO) focused on the global antibody-drug conjugate (ADC) and broader bioconjugate markets, and a company dedicated to providing fully integrated services. According to Frost & Sullivan, WUXI XDC is the second largest CRDMO in the world for bioconjugates such as ADCs based on revenue in 2022.

By the end of 2022, the company will have 94 ongoing projects, accounting for more than 35% of the total number of global bioconjugate outsourcing projects in the same year. Meanwhile, WUXI XDC’s results are growing strongly, demonstrating high growth potential.

He noted that on a consolidated basis, with its leading position in the global ADC CMO market and stable customer base, WUXI XDC has demonstrated significant earnings growth potential, making it a rare growth-oriented stock. As the company’s performance continues to grow at an explosive rate, its fundamentals will be strengthened, which will further open up the upside in valuation and bring considerable compounded return opportunities for investors to follow up on a sustainable basis.

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