HK Stock Market Move | WUXI XDC(02268) rose more than 5% as demand for ADC industry rapidly expands, with the company's revenue growth significantly exceeding the initial guidance at the beginning of the year after 24 years.

WUXI XDC (02268) rose more than 5%, up 5.21% to HK$30.3 as of the time of writing, with a trading volume of HK$59.955 million. CICC released a research report stating that WUXI XDC has announced its performance forecast, expecting a year-on-year increase of over 85%/260%/170% in revenue, net profit, and adjusted net profit for 2024. The revenue growth rate is significantly higher than the 45% initially indicated for 2024, mainly due to the rapid expansion of demand in the ADC industry, with the company as a scarce integrated biocoupling CDMO player showing its competitive advantage. The increase in profit margin in 2024 is mainly due to the improvement in production capacity utilization, the use of self-built production capacity, and the enhancement of operational efficiency. Based on the current pipeline progress, the company conservatively expects revenue growth to exceed 35% in 2025. Morgan Stanley pointed out that the company has pre-announced a strong performance for 2024, and has set a performance growth guidance of at least 35% for 2025, with confidence in achieving a compound annual growth rate of about 31% higher than the industry average from 2024 to 2030. The bank stated that WUXI XDC will launch its DP3 plant in mid-2025 and commence production in Singapore by the end of 2025, preparing for global commercial projects. Morgan Stanley believes that the positive 2025 guidance and solid long-term goals further demonstrate the group's ongoing rapid growth trend.