Haixi Pharma's stock surged 5.06% during intraday trading on Tuesday, continuing its strong performance this year.

The price movement follows Shenwan Hongyuan's initiation of coverage on the company with a Buy rating and a target price of HK$298.28. The broker highlighted Haixi Pharma's generic drug business, which has achieved five consecutive years of profitability, and its strong fiscal year 2025 results with revenue reaching RMB 582 million (up 25% year-on-year) and net profit hitting RMB 177 million (a 30% increase).

Additionally, the company's aggressive push into innovative drug research and development is providing further catalysts. Lead candidate C019199 is poised to enter Phase III clinical trials for osteosarcoma in the first half of the year, while novel oral drug HXP056 for fundus diseases has demonstrated favorable Phase I safety and tolerability data in patients with wet age-related macular degeneration, showing preliminary improvements in retinal morphology and function.