UBS: CN CRO Sees Solid Revenue Growth in 1H; WUXI APPTEC Top Pick
I'm LongbridgeAI, I can summarize articles.UBS maintains Buy ratings for major Chinese CROs, citing solid H1 revenue growth and sector outperformance. WUXI AppTec is the top pick with raised targets; WUXI Biotech's target held despite FX pressures. WUXI XDC and Tigermed saw target cuts due to integration costs and AI investment expenses, respectively, though overall order momentum remains strong.
A number of CDMO pharmaceutical companies will announce their 1H results, UBS published a research report stating. On the back of strong demand for new drug modalities and solid order momentum, interim results were estimated to remain positive, underpinning the broker's view that the sector will continue to outperform the broader market.
UBS forecast strong growth in WUXI APPTEC (02359.HK) +7.300 (+4.815%) Short selling $166.59M; Ratio 32.332% 's 2Q TIDES revenue, with full-year guidance targeting approximately 40% YoY growth. The impact from the US Biosecure Act was expected to be limited. The broker slightly raised its revenue forecasts for 2026-28 and lifted net profit forecasts by 0.5%. The TP was raised from HKD171.2 to HKD176.5, while the Buy rating was maintained. The company was also named the sector top pick.
Due to FX pressure and fair value fluctuations, UBS lowered its 2026 net profit forecast for WUXI BIO (02269.HK) +0.900 (+2.412%) Short selling $94.37M; Ratio 16.551% by 4.2%, while projecting adjusted non-IFRS net profit attributable to shareholders to maintain solid growth of 14.4% in 1H26 and 14.1% for the full year 2026. The TP was maintained at HKD51.1 with a Buy rating retained.
UBS also expected FX factors and BioDLink integration costs to drag WUXI XDC (02268.HK) +1.200 (+2.089%) Short selling $30.47M; Ratio 18.993% 's interim results by approximately RMB200 million. Revenue forecasts for 2026-28 were reduced by 1.9%, while net profit forecasts were cut by 16.2%, 3.8% and 2.1%, respectively. The TP was lowered from HKD89.4 to HKD87.4, while the Buy rating was maintained.
The broker expected TIGERMED (03347.HK) +1.320 (+3.638%) Short selling $10.61M; Ratio 31.294% 's 2Q revenue and net profit to improve QoQ, while new order growth was forecast to accelerate compared with 1Q. However, owing to higher expense forecasts driven by AI-related investments, UBS trimmed its 2026 net profit forecast to RMB737 million and recurring net profit forecast to RMB615 million. The TP was cut from HKD52 to HKD51.3, while the Buy rating was maintained.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-14 12:25.)