CITIC International: Raises WuXi AppTec target price to HKD 131, maintains "Outperform" rating

Jianyin International released a research report stating that it has raised the target price for WuXi AppTec by 7.4%, from HKD 122 to HKD 131, maintaining an "outperform" rating. The firm indicated that despite the imminent implementation of the "U.S. Biosecurity Act 2.0," the company continues to expand its range of drugs while still providing customer services for GLP-1 targeted drugs. The firm noted that the company's Q3 2025 performance exceeded expectations, with net profit increasing from RMB 2.3 billion in the same period of 2024 to RMB 3.5 billion, and total revenue growing by 15% year-on-year to RMB 12.1 billion. Chemical Conjugates (TIDES) will contribute to the company's growth, with TIDES revenue in the first three quarters of 2025 increasing by 121% year-on-year to RMB 7.8 billion, primarily due to a 17% year-on-year increase in TIDES backlog orders. Given the continued growth in demand for TIDES from overseas clients, the firm has raised its total revenue forecasts for 2026 and 2027 by 2% and 3%, respectively, to RMB 51.9 billion and RMB 58.5 billion; due to improved gross margins and a decrease in the ratio of operating expenses to sales, the core profit expectations for 2026 and 2027 have been raised by 9% and 12% to RMB 15.3 billion and RMB 17.7 billion, respectively