CICC: Maintains "outperform" rating on WUXI BIO (02269) with a target price reduced to HK$19.09.

CICC released a research report stating that the target price of WUXI BIO (02269) has been raised by 15% to 19.09 Hong Kong dollars, maintaining an "outperform" rating. The profit forecasts for 2024 and 2025 remain unchanged, and for the first time, the profit forecast for 2026 is introduced at 4.693 billion RMB. WUXI BIO announced that the Irish vaccine factory has reached an agreement with MSD International GmbH to acquire WuXi Biologics' vaccine facility in Ireland for approximately $500 million. The company expects the transaction to be completed in the first half of 20265. CICC believes that this transaction will have a limited impact on the financial statements. It will not affect the company's biopharmaceutical factory in Ireland or vaccine factory in Suzhou. WuXi Biologics' Irish vaccine facility is an exclusive investment by MSD. The financial stability of the company will be further enhanced, benefiting both parties. Through this transaction, WuXi Biologics can improve asset efficiency and profit margins, focus on Suzhou base to provide vaccine CDMO services to more customers, and strengthen the company's liquidity for capacity expansion and stock repurchases. This transaction also demonstrates the company's ability to build and operate world-class vaccine production facilities according to international standards set by global vaccine giants.