Genscript Biotech Corp Class H
01548: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
— | — | — | Gxhqnkhr |
GenScript’s Non-Cell Therapy Businesses Shine, Growth Trajectory To Continue
No-moat GenScript’s interim results demonstrated excellent growth in the non-cell therapy, or NCT, businesses. NCT revenue was USD 196 million in the first half, or 37% year-on-year growth. Operating profit margin fell by 3.3 percentage points, mostly due to exchange rate fluctuations, elevated shipping costs, and lower sales from higher-margin COVID-19 products. However, much of this is transient and we think margins are healthy for such fast-growing businesses. Our fair value estimate is unchanged at HKD 20.50 per share.