CMB International: Maintains "Buy" rating on WUXI BIO (02269), target price raised to HK$24.24

CMB International released a research report stating that it maintains a "buy" rating for WUXI BIO (02269), with a target price raised from HK$22.88 to HK$24.24 to reflect the recovery in demand. It believes that demand will bring good prospects for this year, forecasting year-on-year revenue growth of 7.1%, 13.4%, and 15.6% for 2024 to 2026, and adjusted net profit increase of 0.9%, 13%, and 15.6%. The report mentioned that WUXI BIO added 151 new projects last year, setting a new record. The company powered seven global projects in molecular research services last year, with the right to receive approximately US$140 million in the near future. Overseas business is steadily progressing, and its Ireland production facility is expected to break even this year. The management also reiterated last year's guidance, expecting revenue and adjusted profit to grow by 5% to 10%, and expressing confidence in accelerated revenue growth this year. The report referenced that WUXI BIO completed 77 Process Performance Qualification (PPQ) projects last year, a 26% year-on-year increase, and expects this number to increase by 31% to 101 projects this year. The bank estimates that this momentum will be beneficial for the company's future growth in CMO revenue.