"Major Banks" CMB International: WUXI XDC's global CXO track investment and financing, BD transactions continue to show high activity, maintaining a "Buy" rating

The research report from CMB International points out that WuXi XDC (02268.HK), as a leading indicator reflecting the demand for CRDMO services, has seen the investment and financing activities in the global CXO sector maintain the high levels of activity observed over the past two years into early 2026. The group is expected to benefit from the steady improvement in industry prosperity, with a projected growth of over 20% in total orders from 2025 to 2027, and a rapid increase in contributions from later/commercial orders, expanding market share.

The bank indicated that based on the company's profit forecast for 2025, it has slightly lowered the group's revenue and adjusted net profit forecasts for 2025 to 2027 by 1% to 3%, to RMB 5.88 billion, 8.28 billion, and 11.11 billion, respectively, as well as RMB 1.6 billion, 2.45 billion, and 3.42 billion, corresponding to a CAGR of 38% and 46% for 2025 to 2027. The strong growth is mainly attributed to the rapid increase in comprehensive CMC orders, particularly the enhancement of contributions from late-stage/commercial orders.

CMB International's target price is HKD 91, corresponding to a price-to-earnings ratio of 42 times for 2026, maintaining a "Buy" rating. Considering the company's leading position in the high-prosperity XDC CRDMO sector and the current high investment value, the company continues to be selected as a key recommended stock in the CXO industry