CICC: Raised WuXi AppTec (02359) target price to HKD 131, maintaining "outperform" rating.

CICC International issued a research report, stating that it has raised the target price of WuXi AppTec (02359) by 7.4%, from HK$122 to HK$131, maintaining an "outperform" rating. The bank indicated that despite the potential implementation of the "US Biosecurity Act 2.0", the company continues to expand its drug range besides providing customer service for GLP-1 targeted drugs. It is mentioned that the company's performance in the third quarter of 2025 exceeded expectations, with net profit increasing from RMB 23 billion in the same period of 2024 to RMB 35 billion, and total revenue increasing by 15% year-on-year to RMB 121 billion. The growth of Chemical Conjugate Materials (TIDES) will contribute to the company's growth, with TIDES revenue in the first three quarters of 2025 increasing by 121% year-on-year to RMB 78 billion, mainly due to a 17% year-on-year increase in backlogged orders for TIDES. Due to the continued growth of overseas demand for TIDES, the bank has raised its total revenue forecasts for 2026 and 2027 by 2% and 3%, reaching RMB 519 billion and RMB 585 billion respectively; with an increase in gross profit margin and a decrease in operating expenses as a percentage of sales, the core profit forecasts for 2026 and 2027 have also been raised by 9% and 12% respectively to RMB 153 billion and RMB 177 billion.