HK Stock Market Move | WUXI XDC(02268) rose more than 5%, with the annual net profit expected to increase more than 2.6 times year-on-year. Lyon is optimistic about the company's market share growth potential.

WUXI XDC (02268) rose more than 5%, up 5.75% as of the publication, reporting 36.8 Hong Kong dollars, with a turnover of 77.4048 million Hong Kong dollars. On the news front, WUXI XDC previously announced a profit increase, expecting the group's revenue, net profit, and adjusted net profit for the fiscal year ending December 31, 2024 to increase by over 85%, 260%, and 170% respectively compared to the previous year. The expected growth is mainly due to the continuous high-speed development of the downstream customers' antibody-drug conjugate (ADC) and other bioconjugate drug industries; the group's leading position and unique competitive advantages in the industry; further improvement in the group's profit margin, mainly attributed to the high production utilization rate of production facilities, further enhancement of the group's production capacity with the commissioning of new production lines, improvement in operational efficiency, and interest income from cash financial management. A report from BOCI Research pointed out that WUXI XDC's market share in 2023 was 14.5%. According to external agencies' forecasts, the global antibody-drug conjugate (ADC) outsourcing market revenue is expected to grow at a compound annual growth rate of 28% from 2022 to 2030. The bank believes WUXI XDC has good market share growth potential, mainly due to its "one-stop" capabilities, efficiency above the industry average; solid historical performance; expanding global pharmaceutical market influence; and increasing order backlog.