01875 Overview

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.

WUXI XDC Takeover Bid: WUXI XDC has proposed a takeover bid for BIODLINK-B, raising investor concerns about the rationale behind the move, as noted in a Morgan Stanley report.

Financial Comparison: In the first half of 2025, BIODLINK-B reported revenue of RMB489 million and earnings of RMB4 million, while WUXI XDC's figures were significantly higher at RMB2.701 billion in revenue and RMB746 million in earnings.

Market Ratings: Morgan Stanley has rated WUXI XDC as Overweight with a target price of HKD88, indicating a positive outlook for the company.

BIODLINK-B's Strategic Shift: Since the 2020s, BIODLINK-B has shifted its focus from oncology drugs to a CDMO model centered around Antibody-Drug Conjugates (ADC).

WUXI BIO and WUXI XDC Acquisition: WUXI BIO and WUXI XDC announced a takeover bid of approximately HKD2.8 billion to acquire at least 60% of BIODLINK-B, which is expected to maintain its listed status post-acquisition.

Business Expansion Goals: The acquisition is projected to enhance WUXI XDC's operational production capacity in China, expand its project portfolio, increase its customer base, and strengthen its market position in the ADC contract development and manufacturing sector.

Takeover Bid: BIODLINK-B received a takeover offer from WUXI XDC at a cash price of HKD4 per share, representing a 60% premium over its previous closing price before trading suspension.

Stock Performance: After resuming trading, BIODLINK-B's stock peaked at HKD3.97 and last traded at HKD3.93, reflecting a 57.2% increase with a trading volume of 2.8 million shares.

Transaction Details: The maximum consideration for the acquisition, including share options, is approximately HKD2.79 billion, which WUXI XDC plans to fund using internal resources.

Future Plans: Upon completion of the acquisition, BIODLINK-B will become a subsidiary of WUXI XDC and WUXI BIO, and it will continue to be listed on the Hong Kong Stock Exchange with new directors nominated by WUXI XDC.