"Big Banks" Bank of America Securities: WUXI BIO's earnings surprise is stable, raising target price to 47 yuan

The research report from Bank of America Securities indicates that WUXI BIO (02269.HK) has issued a positive profit alert, expecting a 16.7% year-on-year revenue growth to RMB 21.8 billion in 2025, in line with the bank's expectations, benefiting from a record number of new projects and an expanded service scope, particularly in the BsAb and ADC platforms.

The gross profit margin is expected to expand by 5 percentage points year-on-year to 46%, better than the bank's expectations, mainly due to improved capacity utilization and efficiency improvements driven by the Lean Operations Management System (WBS). Net profit and net profit attributable to shareholders are expected to be RMB 5.7 billion and RMB 4.9 billion, respectively, representing year-on-year growth of 45.3% and 46.3%. After excluding one-time investment income/costs and equity incentive expenses, the adjusted net profit under non-IFRS is expected to be RMB 6.6 billion, a year-on-year increase of 22%.

The bank has slightly raised its revenue forecasts for 2025 to 2027 by 1%, and increased its gross profit margin forecast for 2025 by 3 percentage points; net profit forecasts for 2025 to 2027 have been raised by 7% to 12%. The target price has been raised from HKD 41.8 to HKD 47, reiterating a "Neutral" rating