<Research>CLSA: Thursday's Drop in WUXI BIO/WUXI XDC Not Based on Fundamental Factors
Market Performance: WUXI BIO and WUXI XDC experienced declines of approximately 7% and 8% respectively, while Hong Kong-listed CRO/CDMO companies overall lost between 2% to 9%.
Analysis of Decline: CLSA's report attributes the decline to technical factors and capital flow rather than fundamental issues, suggesting that the pullback is a short-term volatility rather than a sign of weakening demand.
Trade with 70% Backtested Accuracy
Analyst Views on 02268
About the author
<Research>CLSA: Thursday's Drop in WUXI BIO/WUXI XDC Not Based on Fundamental Factors
Market Performance: WUXI BIO and WUXI XDC experienced declines of approximately 7% and 8% respectively, while Hong Kong-listed CRO/CDMO companies overall lost between 2% to 9%.
Analysis of Decline: CLSA's report attributes the decline to technical factors and capital flow rather than fundamental issues, suggesting that the pullback is a short-term volatility rather than a sign of weakening demand.
HSI Drops Over 500 Points; Meituan, Chinese Insurers and Pharmacies Underperform; Standard Chartered Remains Strong; Knowledge Atlas and MiniMax Recover
Market Overview: The Hong Kong bourse opened lower, with the Hang Seng Index (HSI) dropping 509 points or 1.9% to 26,572, amid a turnover of HKD124.419 billion.
Pharmaceutical Sector Decline: Pharmaceutical stocks were the biggest losers, with notable declines in HANSOH PHARMA, SINO BIOPHARM, and CSPC PHARMA, all experiencing significant short selling.
Insurance Sector Struggles: Chinese insurers faced pressure, with major companies like CHINA LIFE and PING AN seeing substantial losses, contributing to a broader decline in the financial sector.
AI Stocks Recovery: Three AI-related semi-IPOs rebounded after previous losses, with MINIMAX-WP, KNOWLEDGE ATLAS, and HAIZHI TECH GP all posting gains and increased trading volumes.
M Stanley Lowers Price Target for WUXI XDC (02268.HK) to HKD86, Maintains Overweight Rating
Earnings Forecast Adjustment: WUXI XDC disclosed a decline in operating margins for 2025, leading Morgan Stanley to reduce its earnings forecast for 2026-30 by 1-2% and adjust the target price from HKD88 to HKD86.
Positive Long-term Outlook: Despite the short-term challenges, Morgan Stanley predicts a 36% CAGR for WUXI XDC's adjusted net profit from 2024 to 2027, assigning an Overweight rating due to expectations of profit growth, margin expansion, and industry leadership.
S Korean Investors' Top HK Stock Purchase This Year: MINIMAX, Totaling USD 20.7M
Top Stock Purchases: As of February 10, 2026, South Korean investors' most purchased stock on the Hong Kong Stock Exchange is MINIMAX-WP (00100.HK) with a net purchase of approximately USD20.7 million, followed by CAM CSI300 (03188.HK) and MONTAGE TECH (06809.HK).
Shift in Investment Focus: Compared to 2025, South Korean investors are increasingly targeting China's emerging industries and tech companies, indicating a strategic shift in their investment approach.
Nomura Raises WUXI BIO (02269.HK) Price Target to $50.54 Following Strong Preliminary 2025 Results
WUXI BIO Profit Forecast: WUXI BIO projects a 16.7% YoY revenue growth for 2025, reaching RMB21.8 billion, surpassing market expectations of RMB21.5 billion.
Gross Margin and Net Profit Expectations: The company anticipates a gross margin increase to 46% and a net profit rise of 45.3% YoY to RMB5.7 billion, both exceeding market estimates.
Impact of WUXI XDC: Nomura highlights WUXI XDC as a key driver for revenue growth, with 2H25 revenue expected to grow by 12% YoY, up from 9% in 1H25.
Target Price Adjustment: Nomura raised WUXI BIO's target price from $37.36 to $50.54, maintaining a "Buy" rating based on the positive outlook.
Nomura Raises WUXI XDC (02268.HK) Price Target to $87.73, Anticipates 47% Profit Increase This Year
Nomura's Forecast Adjustment: Nomura has reduced its 2025 revenue and profit forecasts for WUXI XDC by 4.5% and 8.7%, respectively, based on recent company data.
Revenue Expectations: The broker projects revenue from commercial stage projects to reach RMB181 million and anticipates an additional RMB150 million from the acquisition of BIODLINK-B.
Profit Growth Projection: Nomura expects a 47% increase in profit for WUXI XDC in 2026, leading to an upward revision of the target price from $82.72 to $87.73.
Investment Rating: The rating for WUXI XDC has been maintained at "Buy" following the adjustments in forecasts and target price.
<Research>CLSA: Thursday's Drop in WUXI BIO/WUXI XDC Not Based on Fundamental Factors
Market Performance: WUXI BIO and WUXI XDC experienced declines of approximately 7% and 8% respectively, while Hong Kong-listed CRO/CDMO companies overall lost between 2% to 9%.
Analysis of Decline: CLSA's report attributes the decline to technical factors and capital flow rather than fundamental issues, suggesting that the pullback is a short-term volatility rather than a sign of weakening demand.
HSI Drops Over 500 Points; Meituan, Chinese Insurers and Pharmacies Underperform; Standard Chartered Remains Strong; Knowledge Atlas and MiniMax Recover
Market Overview: The Hong Kong bourse opened lower, with the Hang Seng Index (HSI) dropping 509 points or 1.9% to 26,572, amid a turnover of HKD124.419 billion.
Pharmaceutical Sector Decline: Pharmaceutical stocks were the biggest losers, with notable declines in HANSOH PHARMA, SINO BIOPHARM, and CSPC PHARMA, all experiencing significant short selling.
Insurance Sector Struggles: Chinese insurers faced pressure, with major companies like CHINA LIFE and PING AN seeing substantial losses, contributing to a broader decline in the financial sector.
AI Stocks Recovery: Three AI-related semi-IPOs rebounded after previous losses, with MINIMAX-WP, KNOWLEDGE ATLAS, and HAIZHI TECH GP all posting gains and increased trading volumes.
M Stanley Lowers Price Target for WUXI XDC (02268.HK) to HKD86, Maintains Overweight Rating
Earnings Forecast Adjustment: WUXI XDC disclosed a decline in operating margins for 2025, leading Morgan Stanley to reduce its earnings forecast for 2026-30 by 1-2% and adjust the target price from HKD88 to HKD86.
Positive Long-term Outlook: Despite the short-term challenges, Morgan Stanley predicts a 36% CAGR for WUXI XDC's adjusted net profit from 2024 to 2027, assigning an Overweight rating due to expectations of profit growth, margin expansion, and industry leadership.
S Korean Investors' Top HK Stock Purchase This Year: MINIMAX, Totaling USD 20.7M
Top Stock Purchases: As of February 10, 2026, South Korean investors' most purchased stock on the Hong Kong Stock Exchange is MINIMAX-WP (00100.HK) with a net purchase of approximately USD20.7 million, followed by CAM CSI300 (03188.HK) and MONTAGE TECH (06809.HK).
Shift in Investment Focus: Compared to 2025, South Korean investors are increasingly targeting China's emerging industries and tech companies, indicating a strategic shift in their investment approach.
Nomura Raises WUXI BIO (02269.HK) Price Target to $50.54 Following Strong Preliminary 2025 Results
WUXI BIO Profit Forecast: WUXI BIO projects a 16.7% YoY revenue growth for 2025, reaching RMB21.8 billion, surpassing market expectations of RMB21.5 billion.
Gross Margin and Net Profit Expectations: The company anticipates a gross margin increase to 46% and a net profit rise of 45.3% YoY to RMB5.7 billion, both exceeding market estimates.
Impact of WUXI XDC: Nomura highlights WUXI XDC as a key driver for revenue growth, with 2H25 revenue expected to grow by 12% YoY, up from 9% in 1H25.
Target Price Adjustment: Nomura raised WUXI BIO's target price from $37.36 to $50.54, maintaining a "Buy" rating based on the positive outlook.
Nomura Raises WUXI XDC (02268.HK) Price Target to $87.73, Anticipates 47% Profit Increase This Year
Nomura's Forecast Adjustment: Nomura has reduced its 2025 revenue and profit forecasts for WUXI XDC by 4.5% and 8.7%, respectively, based on recent company data.
Revenue Expectations: The broker projects revenue from commercial stage projects to reach RMB181 million and anticipates an additional RMB150 million from the acquisition of BIODLINK-B.
Profit Growth Projection: Nomura expects a 47% increase in profit for WUXI XDC in 2026, leading to an upward revision of the target price from $82.72 to $87.73.
Investment Rating: The rating for WUXI XDC has been maintained at "Buy" following the adjustments in forecasts and target price.
