M Stanley Maintains WUXI APPTEC as 2026 Top Choice Following Over 100% Earnings Growth in 2025
Stock Performance: WUXI APPTEC (02359.HK) saw a significant increase of 7.852%, with a short selling amount of $68.63 million and a ratio of 11.848%.
Financial Projections: According to Morgan Stanley, WUXI APPTEC's 2025 revenue, earnings, and adjusted non-IFRS profit are projected to rise by 15.8%, 102.7%, and 41.3% YoY, reaching RMB45.5 billion, RMB19.2 billion, and RMB15 billion, respectively.
Broker Recommendations: Morgan Stanley has listed WUXI APPTEC as a top pick for 2026, setting a target price of RMB130 for its A-shares and maintaining an Overweight rating.
Future Outlook: Potential catalysts for growth include updated business outlooks from broker conferences and a reduction in geopolitical tensions.
Trade with 70% Backtested Accuracy
Analyst Views on 02359
About the author
G Sachs: This Year, China's Healthcare Sector Depends More on Data and Earnings Clarity; Favorable Outlook for CDMO Companies
Healthcare Sector Outlook: Goldman Sachs predicts that the strong trend in China's healthcare sector will continue, with stock trading increasingly focused on companies' execution capabilities and R&D pipelines rather than just licensing expectations.
CDMO Companies Favorable: The broker is optimistic about CDMO companies due to their growth potential and reasonable valuations, upgrading WUXI APPTEC and WUXI XDC to Buy.
Selective Biotech and Pharma Strategy: Goldman Sachs favors biotech and pharmaceutical companies with promising data releases and transaction expectations, highlighting SKB BIO-B, HENLIUS, and HANSOH PHARMA as favorable investments.
Cautious on Medical Services: The broker maintains a neutral stance on the medical devices sector and is cautious about medical services due to cost control measures and weak consumption, downgrading HYGEIA HEALTH and JXR to Neutral/Sell.
Midday Update: HSI Ends at 26,552, Down 11 Points; HSTI at 5,711, Down 38 Points; POP MART Rises Over 8%; LUK FOOK HOLD, NANSHAN AL INTL, CHINA EAST AIR, CTG DUTY-FREE, and CHINA TAIPING Reach New Highs
Market Performance: The Hang Seng Index (HSI) closed down 11 points at 26,552, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Notable stocks included Xiaomi and Tencent, both down approximately 1.5%, while Ping An saw a slight increase of 1.1%.
Top Gainers and Losers: Pop Mart surged by 8.5%, while Wuxi AppTec fell by 4.6%. Other significant movers included China Overseas and China Res Land, both showing positive gains.
Short Selling Activity: High short selling ratios were observed across various stocks, with Xiaomi and Meituan leading in short selling amounts, indicating market caution.
M Stanley Identifies Top Thematic Investment Opportunities in APAC, Featuring Japanese Stocks (Table)
Stock Performance: AIA, Tencent, Wuxi AppTec, and XPeng experienced declines in stock prices, with short selling ratios indicating significant market activity.
Short Selling Data: AIA had a short selling amount of $129.72M with a ratio of 15.305%, while Tencent's short selling reached $311.31M at a ratio of 3.850%.
Other Notable Stocks: Companies like CATL and Daiichi Sankyo were mentioned, with CATL showing a slight increase in stock price.
Market Outlook: Daiwa forecasts an early spring rally for the A-share market, predicting a transition to a 'slow bull' market.
HSI Declines 265 Points at Midday as Certain AI and Pharma Stocks Drop; Power Equipment Stocks Rise
Market Overview: The HSI fell 1% to 26,579, with the HSCEI down 0.9% and the HSTECH decreasing by 1.1%, resulting in a total half-day turnover of $132.94 billion.
AI Stocks Performance: XTALPI saw a gain of 3.4%, while KINGSOFT CLOUD, INSILICO, GDS-SW, and UNISOUND experienced declines ranging from 2.7% to 5.6%.
Power Equipment Stocks: DONGFANG ELEC and HARBIN ELECTRIC both rose significantly, with increases of 6.6% and 7.3%, respectively, despite the overall market trend.
Pharmaceutical Sector Decline: Several pharmaceutical stocks, including SINO BIOPHARM and 3SBIO, faced declines of 4.6% to 6.1%, with WUXI APPTEC also dropping by 2.8%.
Citi Places WUXI APPTEC on 90-Day Upside Catalyst Watch with Target Price of HKD142
Citi Research Report: Citi has included WUXI APPTEC in its 90-day upside catalyst watch, anticipating optimistic management guidance for 2026 performance in the upcoming results report in March.
Market Performance: WUXI APPTEC's stock has seen a short selling of $73.76M with a ratio of 21.151%, reflecting market activity and investor sentiment.
Analyst Ratings: Citi has assigned a Buy rating to WUXI APPTEC with a target price of HKD142, citing attractive valuation as a key factor.
M Stanley's Position: M Stanley continues to list WUXI APPTEC as a top pick for 2026, projecting a significant earnings surge in 2025.
CLSA Identifies WUXI APPTEC (02359.HK) as a Leading Choice in China's Pharma CRO/CDMO Sectors, Anticipating Superior Performance This Year
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.
G Sachs: This Year, China's Healthcare Sector Depends More on Data and Earnings Clarity; Favorable Outlook for CDMO Companies
Healthcare Sector Outlook: Goldman Sachs predicts that the strong trend in China's healthcare sector will continue, with stock trading increasingly focused on companies' execution capabilities and R&D pipelines rather than just licensing expectations.
CDMO Companies Favorable: The broker is optimistic about CDMO companies due to their growth potential and reasonable valuations, upgrading WUXI APPTEC and WUXI XDC to Buy.
Selective Biotech and Pharma Strategy: Goldman Sachs favors biotech and pharmaceutical companies with promising data releases and transaction expectations, highlighting SKB BIO-B, HENLIUS, and HANSOH PHARMA as favorable investments.
Cautious on Medical Services: The broker maintains a neutral stance on the medical devices sector and is cautious about medical services due to cost control measures and weak consumption, downgrading HYGEIA HEALTH and JXR to Neutral/Sell.
Midday Update: HSI Ends at 26,552, Down 11 Points; HSTI at 5,711, Down 38 Points; POP MART Rises Over 8%; LUK FOOK HOLD, NANSHAN AL INTL, CHINA EAST AIR, CTG DUTY-FREE, and CHINA TAIPING Reach New Highs
Market Performance: The Hang Seng Index (HSI) closed down 11 points at 26,552, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Notable stocks included Xiaomi and Tencent, both down approximately 1.5%, while Ping An saw a slight increase of 1.1%.
Top Gainers and Losers: Pop Mart surged by 8.5%, while Wuxi AppTec fell by 4.6%. Other significant movers included China Overseas and China Res Land, both showing positive gains.
Short Selling Activity: High short selling ratios were observed across various stocks, with Xiaomi and Meituan leading in short selling amounts, indicating market caution.
M Stanley Identifies Top Thematic Investment Opportunities in APAC, Featuring Japanese Stocks (Table)
Stock Performance: AIA, Tencent, Wuxi AppTec, and XPeng experienced declines in stock prices, with short selling ratios indicating significant market activity.
Short Selling Data: AIA had a short selling amount of $129.72M with a ratio of 15.305%, while Tencent's short selling reached $311.31M at a ratio of 3.850%.
Other Notable Stocks: Companies like CATL and Daiichi Sankyo were mentioned, with CATL showing a slight increase in stock price.
Market Outlook: Daiwa forecasts an early spring rally for the A-share market, predicting a transition to a 'slow bull' market.
HSI Declines 265 Points at Midday as Certain AI and Pharma Stocks Drop; Power Equipment Stocks Rise
Market Overview: The HSI fell 1% to 26,579, with the HSCEI down 0.9% and the HSTECH decreasing by 1.1%, resulting in a total half-day turnover of $132.94 billion.
AI Stocks Performance: XTALPI saw a gain of 3.4%, while KINGSOFT CLOUD, INSILICO, GDS-SW, and UNISOUND experienced declines ranging from 2.7% to 5.6%.
Power Equipment Stocks: DONGFANG ELEC and HARBIN ELECTRIC both rose significantly, with increases of 6.6% and 7.3%, respectively, despite the overall market trend.
Pharmaceutical Sector Decline: Several pharmaceutical stocks, including SINO BIOPHARM and 3SBIO, faced declines of 4.6% to 6.1%, with WUXI APPTEC also dropping by 2.8%.
Citi Places WUXI APPTEC on 90-Day Upside Catalyst Watch with Target Price of HKD142
Citi Research Report: Citi has included WUXI APPTEC in its 90-day upside catalyst watch, anticipating optimistic management guidance for 2026 performance in the upcoming results report in March.
Market Performance: WUXI APPTEC's stock has seen a short selling of $73.76M with a ratio of 21.151%, reflecting market activity and investor sentiment.
Analyst Ratings: Citi has assigned a Buy rating to WUXI APPTEC with a target price of HKD142, citing attractive valuation as a key factor.
M Stanley's Position: M Stanley continues to list WUXI APPTEC as a top pick for 2026, projecting a significant earnings surge in 2025.
CLSA Identifies WUXI APPTEC (02359.HK) as a Leading Choice in China's Pharma CRO/CDMO Sectors, Anticipating Superior Performance This Year
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.
