Nomura raises WUXI BIO's target price to 50.54 yuan, with preliminary annual performance exceeding expectations

Nomura's research report indicates that WUXI BIO (02269.HK) has announced a profit forecast, expecting a 16.7% year-on-year revenue growth to RMB 21.8 billion (the same below), slightly higher than the market expectation of RMB 21.5 billion. The gross profit margin is expected to improve by 5 percentage points year-on-year to 46%, also higher than the market expectation of 43%. Net profit and net profit attributable to shareholders are expected to grow by 45.3% and 46.3% year-on-year, reaching RMB 5.7 billion and RMB 4.9 billion, surpassing market expectations of RMB 4.8 billion and RMB 4.4 billion. Non-International Financial Reporting Standards net profit is expected to grow by 22% year-on-year to RMB 6.6 billion.

The bank estimates that revenue in the second half of 2025 will grow by 17.2% year-on-year to RMB 11.8 billion, with profit growth of 38%, both exceeding market expectations. Management attributes the growth to optimistic performance in research service revenue and an increase in projects entering the later stages driven by enhanced service capabilities.

The bank believes that its subsidiary WUXI XDC (02268.HK) is an important contributor to revenue growth. Excluding the contribution from WUXI XDC, revenue in the second half of 2025 is expected to grow by 12% year-on-year to RMB 9.9 billion, accelerating from 9% in the first half of 2025. The bank raises its target price from HKD 37.36 to HKD 50.54, maintaining a "Buy" rating