Nomura expects WuXi AppTec's revenue this year to exceed market expectations, raising the target price to 157.07 yuan

Nomura's research report indicates that based on WuXi AppTec (02359.HK) announcing a positive profit forecast, it is expected that revenue in the fourth quarter of 2025 will grow by 9.2% year-on-year to RMB 11.7 billion, with net profit increasing by 142% to RMB 7.1 billion.

Looking ahead to the fiscal year 2026, the company’s revenue is expected to grow by 16% year-on-year to RMB 52.6 billion, exceeding market expectations of RMB 51.1 billion, due to strong performance in the chemical business; profit is expected to grow by 3% year-on-year to RMB 19.6 billion. The year-on-year growth rate for continuing operations is 21%.

By business segment, the bank expects that in fiscal year 2026, revenue from TIDES and late-stage development and manufacturing will grow by 55% and 10% year-on-year, reaching RMB 17.1 billion and RMB 21.6 billion, respectively. The growth in TIDES business is based on sustained demand and supported by the company's 100,000-liter large-scale functional production capacity.

The bank has raised the target price for WuXi AppTec's H shares from HKD 132.8 to HKD 157.07, and the target price for WuXi AppTec's A shares (603259.SH) from RMB 120.85 to RMB 142.93, both with a "Buy" rating