In "The Big Banks," Citigroup: WuXi Biologics' net profit in the second half of the fiscal year far exceeds expectations, continuing to be the industry's top pick

Citi published a research report indicating that WuXi Biologics (02269.HK) has issued an earnings upgrade for its performance in the second half of 2025, with revenue expected to grow by 17% year-on-year, roughly in line with expectations, while net profit is projected to rise by 38% to 2.6 billion RMB; adjusted net profit is expected to increase by 31% to 3.7 billion RMB, significantly exceeding market expectations. Additionally, the gross profit margin is expected to increase by 6.2 percentage points year-on-year to 48.8%, which is a core positive surprise in this earnings upgrade and a major driver of the better-than-expected profit performance.

The firm stated that WuXi Biologics remains one of its top picks in the pharmaceutical contract research organization (CRO) and contract development and manufacturing organization (CDMO) industry in China, maintaining a target price of 48.5 RMB and a rating of "Outperform."