Citigroup: WuXi AppTec (02268.HK) exceeded net profit expectations in the first half of the year and reiterated a "buy" rating.

Chinatimes Finance App learned that Citigroup has released a research report stating that WuXi AppTec (02268.HK) has announced a profit enhancement. According to international financial reporting standards, it is expected that the revenue in the first half of the year will increase by more than 60% year-on-year, and adjusted net profit (excluding interest income and expenses) will increase by over 67%, with net profit growth of over 50%, outperforming the market's expectations of a 52% increase in revenue and a 26% increase in net profit in the first half of the year. The revenue is in line with the bank's expectations, while the net profit is 32% higher than the bank's forecast. The report points out that WuXi AppTec's management attributes the strong growth to the high customer demand in the ADC industry, the company's high market share, and the improvement in production facility utilization rates. The bank reiterated its "buy" rating on WuXi AppTec with a target price of HK$46.