CMBI: WuXi AppTec (02359.HK) Removal from 1260H List Lowers Geopolitical Risk

Zhitong Finance APP has learned that CMBI has issued a research report stating that it maintains the "Buy" rating and RMB190 target price for WuXi AppTec's (603259.SH) A-shares. WuXi AppTec (02359.HK) has been removed by the U.S. Department of Defense from the "Chinese military companies" list under Section 1260H. The bank believes that, based on WuXi AppTec's business attributes, its removal from the 1260H list is entirely reasonable and is expected to further reduce the interference of geopolitical risks with the company's operations. However, the U.S. Department of Defense also stated that it does not rule out the possibility of re-adding the company to the list in the future based on other new or supplementary reasons.