Morgan Stanley: WuXi AppTec is expected to exceed the full-year revenue growth guidance, maintaining an "Overweight" rating

Morgan Stanley released a research report stating that WuXi AppTec (02359) reported a 15.3% year-on-year increase in revenue for the third quarter to RMB 12.1 billion, and a 53.3% increase in net profit to RMB 3.515 billion. Adjusted net profit under non-International Financial Reporting Standards rose 42% to RMB 4.22 billion, exceeding the bank's expectations. Among these, revenue from chemical, testing, and biological businesses grew by 23%, 2%, and 6% year-on-year, respectively. The bank also believes that now is an appropriate time to purchase shares of WuXi AppTec, as the stock's forecast price-to-earnings ratio for the fiscal year 2026 is about 20 times, lower than the industry median of 26 times; it has given a "buy" rating with a target price of RMB 105 for A-shares. The company has raised its full-year revenue growth guidance for continuing operations from 13%-17% to 17%-18%. The bank believes this adjustment is similar to the approach taken in the first half of this year, with a relatively conservative increase in the upper limit and a significant increase of 4 percentage points in the lower limit. The company's revenue for the first nine months has accumulated a year-on-year growth of 22.5%, and the bank believes its full-year performance is expected to meet or even exceed the guidance