PHARMARON

Pharmaron opened high at HKD23.16 but reversed sharply, sliding to HKD22.58 at close, down 2.8% from previous close of HKD23.24, with total turnover of HKD151 million. The company earlier guided for 10% YoY interim net profit growth and double-digit revenue growth; Q1 revenue rose 22.2% YoY to HKD4.06 billion and net profit grew 16.2% YoY to HKD380 million, yet the stock still trades below its 20-day MA of HKD22.69 and remains 25% off the 52-week high of HKD30.12, capping upside. Nomura recently raised its target price from HKD26.7 to HKD32.2, though the stock has rallied 56% from the 52-week low of HKD14.45, leaving room for short-term profit-taking.

3759.HK staged a strong rebound in the morning session, climbing from an intraday low of 23.220 to 24.800, marking a 5.0% gain, driven by solid earnings results. Q1 2026 revenue hit 4.057 billion HKD (up 22.24% YoY), with net profit of 380.2 million HKD (up 16.18% YoY) and EPS of 0.2097 HKD (up 13.01% YoY), though the net profit margin of 9.37% declined from 13.04% in Q4. The stock at 24.80 HKD trades above both the 20-day MA (21.007) and 60-day MA (18.938), with a YTD gain of 25.06% and a 17.66% gap from its 52-week high of 30.12 HKD; valuation shows a PE of 23.66x and PB of 2.43x. However, the morning session's total volume of just 1.62 million shares and a turnover rate of 0.46% indicate limited trading activity.

Pharmaron Beijing opened higher and climbed further in the morning session, gaining over 5% intraday, driven by a positive interim profit alert forecasting net profit up to 10% YoY, alongside double-digit revenue growth. Q1 revenue rose 22.24% YoY to HKD 4.06 billion and net profit increased 16.18%, reinforcing improving fundamentals. Multiple brokerages recently turned bullish, with HSBC maintaining Buy and Daiwa initiating coverage at a HKD 25.5 target price. The stock has surged over 68% from its 52-week low of HKD 14.45 in June but remains 19% below the 52-week high of HKD 30.12. Currently trading at HKD 24.34, it sits above both the 20-day (HKD 20.164) and 60-day (HKD 18.837) moving averages; however, YTD gains of 22.74% and a sequential decline in net profit margin from Q4 could invite profit-taking.

Pharmaron opened lower and continued to decline in the morning session, with intraday losses widening to 5.1% before closing at HKD 23.70, down approximately 5.0% from the previous close of HKD 24.96, on volume of about 3.18 million shares. The drop was triggered by its interim profit outlook: while revenue is expected to maintain double-digit growth and net profit to rise up to 10% YoY, market concerns over CDMO growth sustainability and FX headwinds weighed on sentiment, prompting profit-taking after the stock had already retreated roughly 21.3% from its 52-week high of HKD 30.12. However, the stock is still up about 19.5% YTD and trades well above its 20-day (HKD 19.74) and 60-day (HKD 18.79) moving averages, indicating the medium-term uptrend remains intact.

Pharmaron Beijing opened higher and rallied in the morning session, reaching HKD 24.80 as of 09:37 BJT, up 5.08% from the previous close, hitting the intraday high. The surge was driven by the company's interim profit forecast, expecting net profit to rise up to 10% YoY, along with UBS, Goldman Sachs maintaining Buy ratings and Daiwa raising its target price to HKD 25.5. Q1 2026 revenue grew 22.24% YoY to HKD 4.06 billion, net profit rose 16.18% YoY, and EPS reached HKD 0.21, reflecting solid fundamentals. The stock is still 17.73% below its 52-week high of HKD 30.12, but has reclaimed both the MA20 (HKD 18.80) and MA60 (HKD 18.68), with a YTD gain of 24.96%. However, morning session volume was only 2.34 million shares, indicating limited trading activity, leaving further upside dependent on volume confirmation.