Cinda Securities: WuXi AppTec raises full-year performance guidance, first gives "buy" rating.

The China Postal Securities research report pointed out that WuXi AppTec's profitabilty is steadily improving, and has raised its full-year performance guidance. The company's net profit attributable to the parent in the first half of the year was 8.56 billion yuan, with a net profit of 4.89 billion yuan in Q2 25. The overall performance is in line with the previous forecast. As of the end of June 2025, the company's backlog of continued operating business orders reached 56.69 billion yuan, with a slower growth rate compared to the 47.1% reported at the end of March in the first quarter report, which is expected to be related to the high utilization rate of the company's production capacity. WuXi AppTec is a leading global "integrated, end-to-end" new drug research and development service platform. Considering that the company's core Chemistry business is expected to recover quickly and its profitability will steadily improve, the current PE is at a relatively low level since May 2018. It is covered for the first time and is given a "buy" rating.