Citi raises WuXi AppTec's target price to HKD 138.6, Q3 results exceed expectations.

Jin10 data reported on October 27th, Lyon Research stated that WuXi AppTec (02359.HK) performed steadily in the third quarter, with revenue, net profit, and order growth all exceeding market expectations. During the period, revenue and adjusted non-IFRS net profit increased by 15% and 42% year-on-year, respectively. The company raised its full-year revenue growth guidance for continuing operations from 13%-17% to 17%-18%, and expects the full-year adjusted non-IFRS net profit margin to further improve year-on-year. The bank raised WuXi AppTec’s revenue and net profit forecasts for 2025 to 2027 by approximately 2% and 4%, respectively, to reflect the better-than-expected third-quarter performance and continued strong order growth. The bank raised the target price for WuXi AppTec’s H shares from HKD 137.1 to HKD 138.6, and the target price for WuXi AppTec’s A shares from RMB 124.7 to RMB 126, maintaining an “outperform” rating and listing the shares as a preferred choice in the mainland CRO and CDMO industry.