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JPMorgan

Overweight

maintain

{"WUXI_XDC": "$74", "WUXI_APPTEC": "$142", "WUXI_BIO": "$37"}

2025-12-05

Reason

The analyst rating for the stocks in China's CXO industry, including WUXI APPTEC, WUXI XDC, and WUXI BIO, is based on a few key factors highlighted in JPMorgan's research report. The recent strong rebound in these stocks is attributed to a relief from market concerns regarding potential legislative changes in the US, specifically the US Biosecure Act and the National Defense Authorization Act. Additionally, JPMorgan believes that the easing of geopolitical tensions between the US and China, particularly following a phone call between US President Donald Trump and Chinese President Xi Jinping, will positively impact the development of China's CXO industry. As a result, JPMorgan has rated these stocks as Overweight and set target prices for each.

JPMorgan

Overweight

Price Target

{"WUXI_XDC": "$74", "WUXI_APPTEC": "$142", "WUXI_BIO": "$37"}

2025-12-05

maintain

The analyst rating for the stocks in China's CXO industry, including WUXI APPTEC, WUXI XDC, and WUXI BIO, is based on a few key factors highlighted in JPMorgan's research report. The recent strong rebound in these stocks is attributed to a relief from market concerns regarding potential legislative changes in the US, specifically the US Biosecure Act and the National Defense Authorization Act. Additionally, JPMorgan believes that the easing of geopolitical tensions between the US and China, particularly following a phone call between US President Donald Trump and Chinese President Xi Jinping, will positively impact the development of China's CXO industry. As a result, JPMorgan has rated these stocks as Overweight and set target prices for each.

Goldman Sachs

Neutral

maintain

$63.3

2025-11-05

Reason

The analyst rating for WUXI XDC was set at Neutral by Goldman Sachs due to several factors. While the company is experiencing strong order momentum and solid customer demand, particularly from US clients, there are concerns regarding the potential lower gross margin in the second half of 2025 compared to the first half. Additionally, although the company is actively negotiating contracts for its Singapore facility, the revenue contribution from this facility is expected to be limited before 2027 due to the time required for production capacity expansion. Despite ongoing output and workforce expansions, these factors contributed to the Neutral rating, with a target price set at $63.3.

Goldman Sachs

Neutral

Price Target

$63.3

2025-11-05

maintain

The analyst rating for WUXI XDC was set at Neutral by Goldman Sachs due to several factors. While the company is experiencing strong order momentum and solid customer demand, particularly from US clients, there are concerns regarding the potential lower gross margin in the second half of 2025 compared to the first half. Additionally, although the company is actively negotiating contracts for its Singapore facility, the revenue contribution from this facility is expected to be limited before 2027 due to the time required for production capacity expansion. Despite ongoing output and workforce expansions, these factors contributed to the Neutral rating, with a target price set at $63.3.

HSBC

HSBC Global Research

Buy

maintain

2025-10-15

Reason

The analyst rating from the HSBC Global Research report is based on the following reasons: 1. Short-term Market Fluctuations: The report acknowledges that the recently passed "Biosecure Act" may cause short-term fluctuations in the market, but it emphasizes an optimistic outlook for the long-term growth of China's Contract Development and Manufacturing Organization (CDMO) industry. 2. Risk Management Strategies: Companies in the sector can mitigate risks by diversifying their business regions, expanding their clientele outside the US, and avoiding direct contracts with biotechnology companies of concern. 3. Earnings Visibility: The earnings visibility of market leaders in the industry remains intact, suggesting that they are well-positioned to navigate the challenges posed by the Act. 4. Exemption Period: The Act includes a five-year exemption period for already signed contracts, indicating that the short-term operational impact will be limited. 5. Stock Preferences: The broker specifically recommends PHARMARON and WUXI XDC, both rated as Buy, with target prices set at HKD28.1 and HKD90 respectively, reflecting confidence in their performance despite the regulatory changes.

HSBC

Buy

Price Target

2025-10-15

maintain

The analyst rating from the HSBC Global Research report is based on the following reasons: 1. Short-term Market Fluctuations: The report acknowledges that the recently passed "Biosecure Act" may cause short-term fluctuations in the market, but it emphasizes an optimistic outlook for the long-term growth of China's Contract Development and Manufacturing Organization (CDMO) industry. 2. Risk Management Strategies: Companies in the sector can mitigate risks by diversifying their business regions, expanding their clientele outside the US, and avoiding direct contracts with biotechnology companies of concern. 3. Earnings Visibility: The earnings visibility of market leaders in the industry remains intact, suggesting that they are well-positioned to navigate the challenges posed by the Act. 4. Exemption Period: The Act includes a five-year exemption period for already signed contracts, indicating that the short-term operational impact will be limited. 5. Stock Preferences: The broker specifically recommends PHARMARON and WUXI XDC, both rated as Buy, with target prices set at HKD28.1 and HKD90 respectively, reflecting confidence in their performance despite the regulatory changes.

CLSA

Outperform

maintain

2025-08-21

Reason

CLSA

Outperform

Price Target

2025-08-21

maintain

CICC

maintain

$45 -> $75

2025-08-20

Reason

CICC

Price Target

$45 -> $75

2025-08-20

maintain

Citi

Citi Research

NULL -> Buy

upgrade

$46 -> $70

2025-08-20

Reason

The analyst rating from Citi Research for WUXI XDC (02268.HK) is based on several key factors: 1. Increased Revenue Growth Guidance: WUXI XDC raised its FY2025 revenue growth guidance from over 35% to over 45%, which the broker considers to be relatively conservative. 2. Strong Project Delivery and Order Growth: Citi Research raised its revenue forecasts for 2025-2027 by 6%, 8%, and 8% respectively, indicating confidence in the company's project delivery and order growth. 3. Improved Gross Profit Margin: Management expects the gross profit margin for 2025 to be higher than in 2024, despite a projected decrease in the second half of 2025 due to maintenance costs and facility renewal expenses. This expectation led to an increase in EPS forecasts by 18%, 21%, and 22% for the respective years. 4. Target Price Increase: Citi Research raised its target price from $46 to $70, reflecting the positive outlook on revenue and profit growth. 5. Long-term Growth Potential: The forecasted compound annual growth rate (CAGR) for revenue over the next decade was increased from 23% to 26%, further supporting the Buy rating. Overall, the combination of strong growth projections, improved profitability expectations, and a favorable long-term outlook contributed to the positive analyst rating.

Citi

NULL -> Buy

Price Target

$46 -> $70

2025-08-20

upgrade

The analyst rating from Citi Research for WUXI XDC (02268.HK) is based on several key factors: 1. Increased Revenue Growth Guidance: WUXI XDC raised its FY2025 revenue growth guidance from over 35% to over 45%, which the broker considers to be relatively conservative. 2. Strong Project Delivery and Order Growth: Citi Research raised its revenue forecasts for 2025-2027 by 6%, 8%, and 8% respectively, indicating confidence in the company's project delivery and order growth. 3. Improved Gross Profit Margin: Management expects the gross profit margin for 2025 to be higher than in 2024, despite a projected decrease in the second half of 2025 due to maintenance costs and facility renewal expenses. This expectation led to an increase in EPS forecasts by 18%, 21%, and 22% for the respective years. 4. Target Price Increase: Citi Research raised its target price from $46 to $70, reflecting the positive outlook on revenue and profit growth. 5. Long-term Growth Potential: The forecasted compound annual growth rate (CAGR) for revenue over the next decade was increased from 23% to 26%, further supporting the Buy rating. Overall, the combination of strong growth projections, improved profitability expectations, and a favorable long-term outlook contributed to the positive analyst rating.

Huatai Securities

maintain

2025-08-20

Reason

Huatai Securities

Price Target

2025-08-20

maintain

CCBI

Buy

maintain

$67 -> $72

2025-08-20

Reason

The analyst rating for WUXI XDC is based on several positive financial indicators and performance metrics. The company's 1H25 results met expectations, with a significant net profit increase of 52.7% year-over-year, reaching RMB746 million. Additionally, the adjusted net profit, which excludes share-based payment expenses, rose by 50% year-over-year to RMB801 million, aligning with the broker's forecast. The improvement in the company's gross profit margin (GPM) to 36.1%, compared to 32.1% in the same period of 2024, also contributed to the positive outlook. Furthermore, the increased utilization of existing production facilities and the accelerated commissioning of new production lines support the growth narrative. As a result, CCBI raised its target price for WUXI XDC and maintained an Outperform rating.

CCBI

Buy

Price Target

$67 -> $72

2025-08-20

maintain

The analyst rating for WUXI XDC is based on several positive financial indicators and performance metrics. The company's 1H25 results met expectations, with a significant net profit increase of 52.7% year-over-year, reaching RMB746 million. Additionally, the adjusted net profit, which excludes share-based payment expenses, rose by 50% year-over-year to RMB801 million, aligning with the broker's forecast. The improvement in the company's gross profit margin (GPM) to 36.1%, compared to 32.1% in the same period of 2024, also contributed to the positive outlook. Furthermore, the increased utilization of existing production facilities and the accelerated commissioning of new production lines support the growth narrative. As a result, CCBI raised its target price for WUXI XDC and maintained an Outperform rating.

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