China International Capital Corporation Limited: Maintains a "buy" rating on WUXI BIO(02269) with a target price raised to 37 Hong Kong dollars.

The Bank of China International released a research report stating that it has raised WUXI BIO's target price by 19.4%, from HK$31 to HK$37, while maintaining a "buy" rating. In the fiscal year 2025, WUXI BIO's performance was stable, with improved profit quality, mainly due to optimization of business portfolio and operational efficiency improvement. The guidance for fiscal year 2026 expects a year-on-year growth of 13-17%, reflecting the company's cautious attitude in the face of external uncertainties. However, the fundamentals remain solid, thanks to strong order volume, continuous expansion of backlog orders, and ongoing project progression. The continuous growth contributed by the company's complex biological preparations is improving growth quality, pricing power, and profit margin resilience. Although considering the continuous global capacity expansion, profit margins will gradually increase, the company seems well prepared to maintain steady growth in the medium term and continuously enhance profitability.