Key Takeaways:
GenScript Biotech reported H1 2026 revenue of US$404.2 million, up 27.3%, as adjusted net profit surged 203.3% to US$62.5 million on demand for AI-driven drug discovery services.
"Our first-half results reflect strong execution across the portfolio, with our core businesses driving both revenue growth and improved profitability," Rotating CEO Sherry Shao said.
Life Science Group revenue rose 28.8% to US$319 million, with adjusted operating profit more than doubling to US$94 million. ProBio revenue climbed 34.2% to US$61.1 million on a comparable basis, while new orders rose 54%. Bestzyme revenue grew 7.4% to US$30.4 million.
Shares surged 6.5% to HKD 30.1, a near four-year high, after Goldman Sachs nearly doubled its target price to HKD 34.24 with a Buy rating. Management raised full-year revenue growth guidance to 25%-30% for both the Life Science Group and ProBio, from 15%-18% and 20%-25% respectively.
Life Science Group leads on AIDD
The Life Science Group, which generates about two-thirds of revenue from its Gene-to-Protein platform, posted adjusted gross margin of 57.8%. AI-enabled drug discovery revenue reached about US$40 million in the first half, and management expects it to exceed US$100 million in the second half, targeting triple-digit growth into 2027.
AIDD-related projects carry roughly 20 percentage points higher gross margin than traditional protein expression work, CFO Phil Zhou said, because customers pay a premium for speed and model-ready data that feeds back into their AI models. GenScript competes with Twist Bioscience in gene synthesis, and management said it captures more than twice the revenue per delivered item with faster turnaround.
ProBio builds order momentum
ProBio's adjusted EBITDA loss narrowed to US$6.5 million from US$16.8 million a year earlier, with management expecting positive EBITDA by 2027. The unit signed US$9.7 million of AIDD-related orders in the first half and delivered US$2.5 million in revenue from those programs.
The company plans about US$130 million in capital expenditure for 2026 and holds roughly US$830 million in cash, with no equity financing required, Zhou said.
The guidance raise shows management expects AI-driven demand to accelerate through the second half. Investors will watch whether AIDD order growth sustains into 2027, when the company targets triple-digit expansion in that segment.
This article is for informational purposes only and does not constitute investment advice.
