JP Morgan raises target price for WuXi AppTec (02359) to HK$172, maintains "overweight" rating.

JPMorgan Chase released a research report stating that WuXi AppTec (02359,603259.SH) significantly outperformed expectations in the first quarter on multiple levels, with the stock price soaring 14% in a single day after the results were announced. The performance conference call further confirmed that the results far exceeded expectations, and the profit margin for fiscal year 2026 is expected to be higher than in 2025. The demand growth appears to be widespread, with strong growth in small molecule research and production (D&M) not only coming from oral GLP-1, but management also hinted at updating the annual performance guidance in the second quarter. The bank believes that the strong profit margin in the first quarter reflects improvements in business portfolio and execution capabilities, rather than short-term one-off factors. JP Morgan maintains a "overweight" rating on WuXi AppTec, reaffirming it as one of the top picks in the Chinese CXO sector, with a Hong Kong stock target price raised from HK$150 to HK$172, and an A share target price raised from RMB 150 to RMB 155.