JP Morgan: Raises WuXi AppTec (02359) target price to HK$233, rating "Overweight"
WuXi AppTec's third-quarter revenue rose 38% year on year to RMB16.64 billion, adjusted net profit rose 61% year on year to RMB6.81 billion, and revenue from continuing operations grew 43.5% year on year, supporting another upward revision to this year's full-year guidance.
JP Morgan released a research report stating that WuXi AppTec (02359) delivered strong quarterly results and geopolitical risks have declined. The bank raised its H-share target price from HK$222 to HK$233 and its A-share target price from RMB200 to RMB210, both with an "Overweight" rating, and the stock remains its top pick among Chinese CXO companies.
WuXi AppTec (02359) reported third-quarter revenue up 38% year-on-year to RMB16.64 billion, adjusted net profit up 61% year-on-year to RMB6.81 billion, and revenue from continuing operations up 43.5% year-on-year, supporting another upward revision to its full-year guidance.
The bank also noted that as projects advance to later-stage development and commercial manufacturing, it believes WuXi AppTec's revenue visibility is improving, and a strong order book will also support growth next year. AI drug discovery clients are bringing additional laboratory demand, and capacity expansion should support delivery, but overseas ramp-up costs and potential U.S. policy risks still need to be monitored.
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