On September 8, GENSCRIPT BIO rose 3.81% in regular trading, trading at 32.18 HKD/share, with turnover of approximately 82.11 million HKD. The stock entered a recovery phase after a correction of over 12% from recent highs triggered by the proposed spin-off of subsidiary ProBio Technology.

The company announced on September 4 its plan to spin off indirect non-wholly owned subsidiary ProBio Technology for a separate listing on the HKEX main board. The Listing Committee confirmed on August 14 that the company may proceed with the proposal. The spin-off news, combined with profit-taking pressure following a strong prior rally, had driven consecutive sessions of selling. Post-spin-off, GENSCRIPT BIO will retain controlling interest in ProBio, with its financials continuing to consolidate into group accounts.

Fundamental support underpins the rebound. In H1, the company reported revenue of USD 404 million, up 27.3% YoY. AIDD-related business more than doubled YoY, while life sciences revenue grew 28.8%. Multiple brokerages have recently upgraded targets, with CICC raising its price target by 78.8% to 32 HKD, JPMorgan setting a 35 HKD target, and Huatai Securities maintaining a buy rating with a 36.08 HKD target.

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