Haixi Pharma's stock surged 7.66% during intraday trading on Wednesday, staging a significant rebound.

The movement follows the initiation of coverage by Shenwan Hongyuan with a Buy rating and a target price of HKD 298.28. The broker highlighted the company's robust generic drug business, which has delivered five consecutive years of profitability, with revenue reaching RMB 582 million (up 25% year-over-year) and net profit of RMB 177 million (up 30%).

Investor sentiment was further bolstered by positive updates on the company's innovation pipeline. Phase I clinical data for its novel oral drug HXP056, targeting fundus diseases, demonstrated favorable safety and tolerability, with preliminary signs of efficacy. Additionally, the company's most advanced candidate, C019199, is poised to enter Phase III clinical trials. This combination of validating broker coverage and promising pipeline catalysts supported the stock's technical rebound from a sharp decline in the previous session.