UBS: Raises Target Price for WuXi AppTec to 51.1 Hong Kong Dollars, Reiterates "Buy" Rating.

UBS released a report stating that they hosted an online healthcare roadshow for WuXi Biologics, where management reiterated their guidance for a 13% to 17% year-on-year growth in revenue for 2026. Despite facing ongoing exchange rate pressures, management still showed confidence in potential demand and operational execution. Following strong performance from January to April, the momentum of new orders remained healthy from May to June, with continued growth in European and American markets, as well as a steady recovery trend in the Chinese market. New technology platforms, especially bispecific antibodies, remain key drivers. UBS pointed out that the pricing trend for WuXi Biologics is becoming more favorable, with new contract prices rising by 5% to 15%, higher than the historical increase of 3% to 5% in previous years. In terms of capacity expansion, management revealed that Chinese capacity may reach full production next year, and capacity construction overseas in locations like Singapore and Ireland is progressing smoothly. UBS raised their revenue forecast for WuXi Biologics for the fiscal years 2027 to 2029, resulting in an increase of their target price from 49.3 Hong Kong dollars to 51.1 Hong Kong dollars, and reiterated their "buy" rating.