ADBioTech shares surge on potential exclusive supply deal

The exterior view of ADBioTech’s headquarters. (ADBioTech)

ADBiotech Co., a South Korean bio company, saw its shares hit the ceiling on Wednesday morning following prospects about the company’s exclusive supply of a microbial drug for food waste disposal companies.

Shares of ADBiotech were trading at 4,280 won ($3.22) as of 10:25 a.m., up 29.89 percent from the previous session.

“The global food waste disposal market is projected to grow to $48.8 billion in 2031 from $26.3 billion in 2021,” said Choi Jae-ho, an analyst from Hana Securities Co.

The analyst noted that ADBiotech is expected to exclusively supply microbial drug for food waste disposing to a global top-tier home appliance company and a domestic rental company this year.

Meanwhile, KB Financial Group Inc. and Hana Financial Group Inc. stocks fell on Wednesday morning after missing expectations for inclusion in the Value-Up Index.

Shares of KB Financial Group was down 3.78 percent to 78,900 won as of 10:30 a.m., while those of Hana Financial Group declined 2.01 percent to 58,400 won.

Cosmetic stocks sensitive to consumption change in China, on the other hand, gained ground as China‘s central bank unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk.

The People’s Bank of China (PBOC) recently announced plans to cut the reserve requirement ratios (RRR) for banks by 50 basis points (bp), along with mortgage loan rates.

Shares of COSMAX Inc. surged 9.44 percent to 134,500 won as of 10:32 a.m. while those of AmorePacific Corp. rose 11 percent and LLG H&H Co. climbed 6.34 percent.

The rally was largely driven by expectations that the companies will benefit from the PBOC stimulus package, given their strong sales in China.