CICC: Maintains Outperform rating on Wuxi Biologics, raises target price to HK$36

Zhongjin released a research report stating that due to the smooth progress of the Pharmaron Biotech project and the improvement in operational efficiency, the net profit forecast for 2025/2026 has been raised by 5.5%/1.6% to RMB 42.1/47.1 billion, and the adjusted profit forecast for 2025/2026 has been raised by 2.5%/4.1% to RMB 51.1/55.8 billion. The outperformance industry rating is maintained, with the current stock price corresponding to a 2025/2026 adjusted P/E of 21.7x/19.6x. Due to the recent upward shift in the valuation center of the pharmaceutical sector, the target price has been raised by 10.8% to HKD 36, corresponding to a 2025/2026 adjusted P/E of 26.3x/23.7x, with a 20.9% upside potential from the current stock price.