CLSA Identifies WUXI APPTEC (02359.HK) as a Leading Choice in China's Pharma CRO/CDMO Sectors, Anticipating Superior Performance This Year | Intellectia.AI
CLSA Identifies WUXI APPTEC (02359.HK) as a Leading Choice in China's Pharma CRO/CDMO Sectors, Anticipating Superior Performance This Year
Written by Emily J. Thompson, Senior Investment Analyst
Positive Profit Alert: WUXI APPTEC issued a profit alert forecasting a 9% revenue growth in Q4 2025, with a 36% year-over-year growth in non-IFRS revenue, surpassing market expectations.
Strong Business Performance: The company's success is attributed to its integrated CRDMO model and robust growth in the TIDES business, alongside China's competitive edge in the small molecule supply chain.
Analyst Recommendations: CLSA has set a target price of HKD 143.4 for WUXI APPTEC, maintaining an Outperform rating and identifying it as a top pick in China's CRO/CDMO sectors.
Future Outlook: CLSA anticipates that profit delivery will be more critical than valuation expansion in China's healthcare sector for 2026, with WUXI APPTEC expected to outperform its peers.
Wall Street analysts forecast 02359 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 02359 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 02359 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 02359 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 118.700
Low
Averages
High
Current: 118.700
Low
Averages
High
CLSA
CLSA
Outperform
maintain
$143.4
Al Analysis
2026-01-07
Reason
CLSA
CLSA
Price Target
$143.4
Al Analysis
2026-01-07
maintain
Outperform
Reason
The analyst rating of Outperform for WUXI APPTEC (02359.HK) by CLSA is based on several key factors. The broker anticipates that WUXI APPTEC will benefit from a rebound in outsourcing demand and reduced policy uncertainty, leading to significant earnings growth in 2026. Additionally, three major catalysts in the first quarter of 2026 are expected to drive the company's share price performance:
1. An industry summit from January 12-15 that will provide updates on the CRO industry and boost market confidence.
2. The announcement of the US Department of Defense's 1260H list between January and February, which is expected to alleviate concerns about policy uncertainties.
3. The company's 2026 results guidance in March, which will further confirm its earnings growth potential.
These factors contribute to the positive outlook and the raised target price of $143.4.
BOCI
Buy
upgrade
$122 -> $127
2025-10-30
Reason
BOCI
Price Target
$122 -> $127
2025-10-30
upgrade
Buy
Reason
The analyst rating for WUXI APPTEC was influenced by the company's strong financial performance in its 3Q25 results, which exceeded expectations. BOCI highlighted a year-over-year increase of 15% in revenue and 53% in net profit, driven by the scaling up of late-stage clinical and commercialization projects. Additionally, the company's gross profit margin (GPM) improved significantly, rising by 7.8 percentage points to 49.8%. As a result of this positive performance, BOCI raised its target price for the stock and maintained a Buy rating.
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HSBC Global Research
HSBC Global Research
Buy
upgrade
$124
2025-08-27
Reason
HSBC Global Research
HSBC Global Research
Price Target
$124
2025-08-27
upgrade
Buy
Reason
CLSA
Outperform
maintain
2025-08-25
Reason
CLSA
Price Target
2025-08-25
maintain
Outperform
Reason
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
