JP Morgan: Raises target price for GENSCRIPT BIO (01548) to HKD 35, maintains "Overweight" rating.

JPMorgan has released a research report maintaining an "overweight" rating for GENSCRIPT BIO (01548) and raised the target price from HKD 23 to HKD 35. JPMorgan noted that GENSCRIPT BIO's performance in the first half of the year was better than expected, with management positioning artificial intelligence drug discovery and development (AIDD) as the key driver for revenue and profit growth, margin expansion, and upward guidance. Management believes that the opportunities in AIDD are structural and sustainable, as clients are transitioning from concept validation to repeatable (i.e., large-scale) wet lab validation and model iteration, and Kings Ray has the capability to provide related services. Regarding capacity, management emphasized that modular automation, planned capacity expansion, and ample liquidity are sufficient to support a capital expenditure plan of approximately USD 130 million by 2026.