WUXI BIO Rises Over 3% Amid Anticipations of 46.3% Year-Over-Year Increase in 2025 Net Profit
Stock Performance: WUXI BIO opened 3.55% higher at HKD41.44 with a trading volume of 530,500 shares, reflecting a positive market response.
Profit Forecast: The company issued a positive profit alert, projecting a 16.7% YoY revenue growth to RMB21.79 billion and a significant increase in profit attributable to equity shareholders by approximately 45.3% to RMB4.908 billion.
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Share Placement Announcement: CANBRIDGE-B (01228.HK) has announced the placement of 84.0336 million shares, representing approximately 14.12% of its enlarged share capital, to WuXi Biologics HealthCare Venture at a price of HKD2.38 per share, which is a 14.7% discount to the previous closing price.
Fundraising Details: The total amount raised from this share placement is expected to be HKD200 million, with net proceeds estimated at around HKD199 million.

WUXI BIO Financial Performance: WUXI BIO's pre-announced 2025 results exceeded market expectations, with projected full-year revenue of RMB21.8 billion, a 16.7% increase YoY, and a net profit of RMB4.9 billion, surpassing both market consensus and JPMorgan's forecasts.
JPMorgan's Revised Forecasts: JPMorgan raised its sales forecasts for WUXI BIO by 2-5% for 2025-2027 and 6-9% for 2028 and beyond, anticipating sales growth of 17.3% in 2026 and 18.0% in 2027.
Target Price Adjustment: Following the positive outlook, JPMorgan increased its target price for WUXI BIO from $37 to $51 and extended the target price deadline to December 2026, maintaining an Overweight rating.
Market Activity: WUXI BIO's stock experienced a decline of 3.096%, with significant short selling activity amounting to $316.79 million and a short selling ratio of 10.140%.

Chinese Internet Healthcare Sector Growth: The sector is evolving with increased AI innovation from tech giants and support from national policies, such as Beijing's online consultation pilot program, despite profitability challenges.
Stock Recommendations: UOB Kay Hian maintains a positive outlook on companies like ALI HEALTH and PA GOODDOCTOR, projecting significant revenue growth driven by AI and synergies with major partners.
Top Picks in Healthcare: UOB Kay Hian's top stock picks include BEONE MEDICINES, INNOVENT BIO, and HANSOH PHARMA, highlighting their potential for growth in the Chinese healthcare market.
Investment Ratings: Various companies in the sector have received investment ratings, with several being rated as "Buy," indicating strong confidence in their future performance.
Southbound Trading Inflows: TENCENT (00700.HK) saw a significant net inflow of HKD1.4 billion, while MEITUAN-W (03690.HK) also had a notable inflow of HKD314.6 million in Southbound Trading.
Southbound Trading Outflows: POP MART (09992.HK) experienced a net outflow of HKD301.1 million, with ZIJIN MINING (02899.HK) and WUXI BIO (02269.HK) also recording substantial outflows.
Short Selling Activity: TENCENT had short selling of $1.61 billion with a ratio of 7.556%, while MEITUAN-W faced $1.88 billion in short selling at a ratio of 24.332%.
Market Overview: Overall, Southbound Trading net outflow totaled HKD0, accounting for 39.70% of the total transaction amount of HKD94.78 billion.

Positive Profit Alert: WUXI BIO has issued a profit alert, projecting a 16.7% year-on-year revenue growth to RMB21.8 billion for 2025, which aligns with broker expectations due to new projects and expanded services.
Target Price Adjustment: BofA Securities has raised its target price for WUXI BIO from HKD41.8 to HKD47, maintaining a Neutral rating, while Nomura has also increased its target price to $50.54 following the preliminary 2025 results.

Market Performance: Hong Kong stocks faced a decline, with the HSI dropping 242 points (0.9%) to 27,023, while the HSCEI and HSTECH also fell by nearly 1% and 1.7%, respectively.
Tech Stocks Struggles: Major tech companies like NTES, BABA, and TENCENT saw significant drops in their share prices, with NTES down 3.8% and BABA down 2.1%, amid disappointing earnings reports and ongoing investment strategies.
Chinese Developers' Gains: Some Chinese developers, including CHINA VANKE and RONSHINECHINA, experienced gains due to reports of a potential RMB80 billion rescue package from the Shenzhen municipal government.
WUXI APPTEC's Success: WUXI APPTEC emerged as the best-performing blue chip, rising nearly 4% after Nomura raised its revenue expectations and target price, indicating strong future performance.





