The analyst rating for WUXI XDC (02268.HK) is based on several positive factors highlighted in the article. The key reasons for the "Buy" rating include:
1. Positive Profit Forecast: WUXI XDC has issued a strong profit forecast for 2025, predicting a revenue increase of over 45% year-on-year due to rapid order growth and the commissioning of Wuxi DP3.
2. Significant Gross Profit Growth: The company anticipates a gross profit surge of more than 70%, driven by improvements in capacity utilization, production efficiency, and effective cost control.
3. Revised Net Profit Expectations: BOCOMI has increased its net profit expectations for WUXI XDC for 2026-27 by 2-3%, reflecting confidence in the company's performance.
4. Aggressive Capacity Expansion Plans: The company's plans for capacity expansion and the latest management guidance suggest a strong growth trajectory.
5. Increased Target Price: BOCOMI raised the target price for WUXI XDC to HKD91, indicating a positive outlook for the stock.
6. Top Recommendation: WUXI XDC has been selected as a top recommendation in the CXO industry, further supporting the positive rating.
Overall, the combination of strong revenue and profit forecasts, effective management strategies, and positive market sentiment contribute to the "Buy" rating.
