Goldman Sachs: Raises WuXi AppTec (02359) H-share target price to HK$251, maintains "Buy" rating

Goldman Sachs issued a research report stating that it has raised the H-share target price of WuXi AppTec (02359) and also raised the A-share target price to RMB213, maintaining a "Buy" rating. Based on management's statements in the third quarter of 2026, the bank has greater confidence in the company's earnings visibility for fiscal year 2027, and therefore has raised its adjusted net profit forecasts for fiscal years 2026 to 2028 by 1%-4%, with target prices raised accordingly. The company's strong CDMO orders and recovery in early-stage business have enhanced its earnings visibility for fiscal year 2027. Management emphasized that new orders in the first nine months of 2026 grew by approximately 60% year-on-year, a strong performance mainly driven by accelerated advancement of small-molecule projects in Phase III clinical and commercialization stages, as well as a full recovery in early-stage drug discovery business. The latter is strongly supported by a rebound in financing in the biotech sector and emerging opportunities in AI-driven drug discovery. To meet the aforementioned potential demand, the company plans to accelerate capacity expansion in 2027. Management expects that despite the increase in capacity, the company's profit margins will remain robust, benefiting from improved operational efficiency, economies of scale, and high-quality projects nearing completion.