Daiwa: Still keeping Wuxi Apptec as top stock for 2026, rated as "buy"

Morgan Stanley released a research report stating that WuXi AppTec's revenue in 2025 is expected to increase by 15.8% annually to 45.5 billion yuan, with profit growing by 102.7% to 19.2 billion yuan, and adjusted profit under non-IFRS increasing by 41.3% to 15 billion yuan. During the period, revenue from ongoing operations increased by 21.4% annually, surpassing management's expectations of 17% to 18%, mainly driven by the later-stage R&D and commercial contracts of the chemical business, as well as excellent performance in the TIDES business. In addition, the company confirmed two significant one-time gains during the year, including a disposal gain of approximately 4.2 billion yuan from reducing its stake in WuXi Healthcare Ventures, and a revenue of approximately 1.4 billion yuan from selling its testing business. The bank still considers WuXi AppTec as the top stock for 2026, with a target price of 130 yuan per share, rated as "hold". Future catalysts include updates on business outlook at brokerage conferences, as well as easing of geopolitical headwinds.