Core Viewpoint - The report from Credit Lyonnais expresses a long-term positive outlook on WuXi AppTec (02268), reiterating an "Outperform" rating and raising the target price from HKD 47.3 to HKD 70.7 [1] Financial Performance - For the first half of the year, WuXi AppTec reported a revenue growth of 62% and an adjusted net profit growth of 50%, aligning with previous profit forecasts [1] - The company has increased its revenue and net profit forecasts for 2025 to 2027 by 7% to 8% and 13% to 17%, respectively, projecting revenue growth of 45%, 31%, and 27% for those years [1] Market Demand - The strong demand in the U.S. market has driven a 58% year-on-year increase in total unfulfilled orders and a 48% increase in new signed orders during the period [1] - Management has raised the revenue growth guidance for 2025 from 35% to 45%, primarily due to robust demand for Antibody-Drug Conjugates (ADC) outsourcing and a solid order backlog [1]

Group 1 - The core viewpoint of the report is that WuXi AppTec's revenue and adjusted net profit for the first half of the year increased by 62% and 50% year-on-year, respectively, aligning with previous profit forecasts [1] - The strong demand from the U.S. market has driven a year-on-year growth of 58% in total unfulfilled orders and 48% in new signed orders during the period [1] - Management has raised the revenue growth guidance for 2025 from 35% to 45%, primarily due to robust demand for ADC outsourcing and a solid order backlog [1] Group 2 - The report maintains a long-term positive outlook on WuXi AppTec, reiterating the "Outperform" rating and raising the target price from HKD 47.3 to HKD 70.7 [1] - Revenue forecasts for 2025 to 2027 are projected to grow by 45%, 31%, and 27%, respectively [1]

Core Viewpoint - The Hong Kong biopharmaceutical stocks experienced a general increase, driven by government support for the industry, particularly emphasized by Premier Li Qiang during his recent visit to Beijing [1] Industry Summary - The biopharmaceutical sector in Hong Kong saw significant stock price increases, with notable gains including 5% for Fuhong Hanlin, 3.6% for King’s Ray Biopharmaceutical, and over 3% for WuXi AppTec [1] - Premier Li Qiang highlighted the need for enhanced high-quality technological supply and policy support to promote the development of the biopharmaceutical industry, aiming to produce more high-quality and efficient new drugs [1] - Continuous high-level endorsements from the government signal a strong commitment to supporting the biopharmaceutical industry, especially in the current economic context [1] Company Summary - Fuhong Hanlin (02696) latest price: 83.000, change: +5.06% [1] - King’s Ray Biopharmaceutical (01548) latest price: 17.940, change: +3.64% [1] - WuXi AppTec (02268) latest price: 59.600, change: +3.38% [1] - Other companies with notable increases include: - Keren Biotechnology (06990) +3.29% - Kangfang Biopharmaceutical (09926) +2.83% - Rongchang Biopharmaceutical (09995) +2.87% - Junshi Biosciences (01877) +2.69% - BeiGene (06160) +2.60% [1]

Company Overview - WuXi AppTec (02268.HK) has raised its revenue growth forecast for 2025 from 35% to over 45%, driven by strong order backlog, accelerated project progress, and capacity release [1][2] - The company reported a revenue of 2.701 billion yuan and a net profit of 746 million yuan for the first half of the year, with 82% of revenue coming from overseas markets [1][2] Project and Capacity Development - As of June 2025, the total number of iCMC (integrated Chemistry, Manufacturing, and Control) projects has reached 225, with 37 new projects signed in the first half of 2025, marking a historical high [2] - The company completed over 2,300 early-stage research projects for bioconjugated drugs, including dual-antibody ADCs and novel conjugated drugs [2] - WuXi AppTec is advancing its capacity layout under the "global dual-plant production" strategy in Wuxi and Singapore to prepare for commercial production next year [2] Market Position and Growth - The company's market share has increased from 9.9% in 2022 to 22.2% currently [3] - The ADC (Antibody-Drug Conjugate) market is experiencing explosive growth, with a projected compound annual growth rate (CAGR) of 34% from 2020 to 2024 and 31% from 2024 to 2030 [4] - The global ADC outsourcing service market is expected to reach $11 billion by 2030, growing over 300% from 2024 [4] Industry Trends - The demand for integrated CRDMO (Contract Research, Development, and Manufacturing Organization) services is increasing among global pharmaceutical giants and innovative drug companies, benefiting WuXi AppTec as a leading ADC CRDMO provider [4][5] - The number and value of domestic innovative drug BD (business development) transactions have reached new highs, with 52 transactions involving Chinese innovative drugs going overseas, including 18 transactions exceeding $1 billion [4]

Group 1 - The Hang Seng Index Company will announce the semi-annual review results of the Hang Seng series indices on August 22, 2025, with changes effective from September 8, 2025 [1] - Major brokerages, including UBS, Huatai Securities, and CICC, have released reports predicting adjustments to the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Composite Index [1][2] - CICC highlights the significant scale of passive funds tracking flagship indices, with ETF sizes for the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Technology Index being approximately $30.35 billion, $6.63 billion, and $26.12 billion respectively [1] Group 2 - Potential candidates for inclusion in the Hang Seng Index include Bank of Communications, Pop Mart, Yum China, XPeng Motors, Huazhu Group, JD Logistics, and Innovent Biologics [1][2] - UBS predicts that stocks likely to be included as blue-chip stocks are WuXi AppTec, Pop Mart, JD Logistics, Kingsoft, and Bank of Communications [2] - Historical data indicates that actual results of the Hang Seng Index's quarterly reviews may differ significantly from predictions based on market capitalization rankings [2] Group 3 - Companies such as Cao Cao Travel, InnoCare Pharma, and Chow Tai Fook are expected to be included in the Stock Connect list, which connects Hong Kong-listed companies with mainland investors [3] - CICC estimates that 19 stocks meet the criteria for inclusion in the Stock Connect, including Cao Cao Travel, InnoCare Pharma, and Nanshan Aluminum [3][4] - UBS forecasts potential additions to the Stock Connect list, including East Asia Bank, InnoCare Pharma-B, and Blue Moon Group [3] Group 4 - Huatai Securities also anticipates that 19 stocks may be added to the Stock Connect, including Yunzhisheng, Huiju Technology, and InnoCare Pharma-B [4] - Historical performance shows that newly included stocks in the Stock Connect tend to outperform the Hang Seng Index during the adjustment period, while stocks removed from the index face significant outflows [4]

Core Insights - The CXO (Contract Research Organization) sector is showing positive signals, with WuXi Biologics (2269.HK) and its spin-off WuXi AppTec (2268.HK) reporting strong growth in their H1 2025 performance [2][3] - WuXi Biologics achieved revenue of 9.95 billion yuan, a year-on-year increase of 16.1%, while WuXi AppTec reported revenue of 2.701 billion yuan, up 62.6% [2][3] Financial Performance - WuXi Biologics' IFRS gross profit grew by 27.0% to 4.25 billion yuan, with a gross margin of 42.7% [2] - WuXi AppTec's gross profit increased by 82.2% to 975 million yuan, with a gross margin of 36.1% [2] - EBITDA for WuXi Biologics rose by 50.5% to 4.22 billion yuan, with an EBITDA margin of 42.4% [2] Growth Drivers - WuXi AppTec raised its full-year revenue growth forecast from 35% to over 45%, reflecting strong confidence in its growth potential [3] - The growth is attributed to several factors, including leading technology platforms, expanded service offerings, and improved capacity utilization [4][5] Market Trends - The CXO industry is entering an upward phase, driven by demand recovery, supply-side adjustments, and improved external conditions [3] - The ADC (Antibody-Drug Conjugates) and bispecific/multispecific antibodies are key growth areas, with significant market potential projected [7][8] Order Backlog and Capacity - WuXi Biologics has a substantial order backlog of $20.34 billion, with unfulfilled service orders and potential milestone payments [5][6] - WuXi AppTec's iCMC project count reached 225, with a historical high of 37 new iCMC projects signed in H1 2025 [5][6] Industry Outlook - The ADC market is expected to grow significantly, with projections indicating a market size of $64.7 billion by 2030 [8] - The competitive landscape in the CXO sector is intensifying, with companies needing to innovate and adapt to maintain market share [9]

Core Viewpoint - WuXi AppTec's performance in the first half of the year exceeded expectations, driven by strong demand for antibody-drug conjugates (ADCs) and an increase in market share [1] Financial Performance - Revenue reached 2.7 billion yuan, a year-on-year increase of 62.2% [1] - Gross profit was 980 million yuan, reflecting an 82.2% year-on-year growth [1] - Adjusted net profit stood at 800 million yuan, up 50.1% year-on-year, while net profit after interest expenses was 730 million yuan, marking a 69.6% increase [1] Order Backlog and Market Demand - As of the end of June, the company's unfulfilled orders amounted to 1.33 billion USD, a year-on-year growth of 57.9% [1] - Strong growth in North American clients, accounting for over 50% of the total orders [1] - New signed orders are estimated at approximately 720 million USD, showing rapid growth both year-on-year and half-year [1] Future Outlook - Given the high demand for ADC research and production globally, along with the company's strengthened leading position, profit forecasts for 2025 and 2026 have been raised by 6.3% and 10.2% respectively, to 1.69 billion and 2.33 billion yuan [1] - Target price has been increased by 66.7% to 75 HKD, maintaining an "outperform" rating [1]

Group 1 - The core viewpoint of the report is that Jianyin International has raised the revenue forecasts for WuXi AppTec (02268) for 2025 to 2027 by 1%, 2%, and 23% respectively, reaching RMB 5.9 billion, RMB 8.3 billion, and RMB 10.8 billion [1] - The adjusted profit forecast for 2025 has been increased by 3% to RMB 1.6 billion, while the profit forecasts for 2026 and 2027 remain largely unchanged [1] - The target price for WuXi AppTec has been raised from HKD 67 to HKD 72, maintaining an "outperform the market" rating [1] Group 2 - WuXi AppTec's performance for the first half of 2025 met expectations, with a net profit of RMB 746 million, representing a year-on-year increase of 52.7% [1] - After excluding share-based payment expenses, the adjusted net profit grew by 50% year-on-year to RMB 801 million, aligning with the forecast [1] - The mid-term gross margin was 36.1%, in line with the forecast of 36.3%, and improved from 32.1% in the same period of 2024, mainly due to higher utilization rates of existing API and formulation production facilities, as well as accelerated commissioning of new production lines [1] Group 3 - The value of uncompleted orders increased by 58% year-on-year to USD 1.3 billion, with North America accounting for more than half of the total and showing significant growth [1]

Core Viewpoint - Jianyin International has raised the revenue forecasts for WuXi AppTec (02268) for 2025 to 2027 by 1%, 2%, and 23% respectively, reaching RMB 5.9 billion, RMB 8.3 billion, and RMB 10.8 billion [1] Group 1: Revenue and Profit Forecasts - The adjusted profit forecast for 2025 has been increased by 3% to RMB 1.6 billion, while the forecasts for 2026 and 2027 remain largely unchanged [1] - The target price has been raised from HKD 67 to HKD 72, maintaining an "outperform" rating [1] Group 2: Recent Performance - WuXi AppTec's net profit for the first half of 2025 was RMB 746 million, representing a year-on-year increase of 52.7% [1] - Adjusted net profit, excluding share-based payment expenses, grew by 50% year-on-year to RMB 801 million, aligning with the forecast [1] Group 3: Margin and Orders - The mid-term gross margin was 36.1%, in line with the forecast of 36.3%, and improved from 32.1% in the same period of 2024 [1] - The backlog of unfulfilled orders increased by 58% year-on-year to USD 1.3 billion, with North America accounting for over half of the total and showing significant growth [1]

花旗发表研报指，药明合联将2025财年收入增长指引由逾35%上调至逾45%，该行认为新指引仍然较保 守。管理层同时预期2025年毛利率将高于2024年，基于产能利用率提升，但下半年毛利率将低于上半 年，因有更多维护成本及设施更新支出。该行将2025至27年收入预测分别上调6%、8%及8%，反映强劲 的项目交付及订单增长；因毛利率预期提升，每股盈利预测分别上调18%、21%及22%。该行将其目标 价由46港元上调至70港元，评级"买入"，未来十年收入的年均复合增长率预测亦由23%上调至26%。 ...