Group 1 - Morgan Stanley's research report indicates that WuXi AppTec's valuation levels are attractive amid a stable fundamental backdrop, with a particular focus on WuXi Biologics [1] - The report highlights that WuXi Biologics has raised its earnings guidance and is undergoing significant capacity expansion, with high participation in the next-generation GLP-1 sector [1] - The firm has upgraded earnings forecasts for WuXi Biologics for 2025 to 2027 by 6% to 13%, and for WuXi AppTec by 3% to 4%, designating WuXi AppTec as a top pick [1] Group 2 - The compound annual growth rates for the three companies from 2024 to 2027 are projected at 24%, 23%, and 37% respectively [1] - Other major banks, including Oriental Securities and Goldman Sachs, have also maintained positive ratings on WuXi AppTec and WuXi Biologics, citing strong performance and robust customer demand [2] - Goldman Sachs set a target price of HKD 63.3 for WuXi AppTec, reflecting confidence in the company's order momentum and customer demand [2]

November 20, 2025 09:10 AM GMT WuXi XDC Cayman Inc. | Asia Pacific M Update Asia Pacific Summit 2025 Feedback Questions centred on ramp-up for the Singapore site and margins impact: The Singapore site is expected to add an additional 8mn vials of drug products capacity in 2026, supporting commercial contracts for 2027-28 (note). XDC expects a few active contracts to be signed in the near term. The closest project to FDA inspection is Duality/BionTech's HER2 ADC. With the expansion in Wuxi city and Singapore ...

Investment Rating - The report maintains a positive outlook on the overseas pharmaceutical sector, particularly focusing on innovative drugs and industry chain opportunities, with an investment rating of "Overweight" [1][6]. Core Insights - Multiple policies are supporting the development of the innovative drug industry, with domestic innovative drug transactions reaching historical highs in both value and quantity. The sector's valuation has rebounded from a low point, and leading companies are achieving profitability through increased commercial sales and licensing income [6][8]. - Companies like BeiGene are experiencing significant growth, with global sales exceeding $1 billion in Q3 2025, marking a 51% year-on-year increase. The company anticipates a positive GAAP operating profit for the full year 2025, raising its revenue guidance to $5.1-5.3 billion [1][6]. - Innovent Biologics is expanding its pipeline with a dual focus on oncology and non-oncology products, expecting to achieve positive non-IFRS net profit and EBITDA in 2024, with continued growth projected for 2025 [2][6]. - The report highlights the increasing R&D investments by leading pharmaceutical companies, which are enhancing their innovative pipelines and accelerating their transformation towards innovation [3][7]. Summary by Sections Section 1: Overseas Pharmaceuticals - The report emphasizes the focus on innovative drugs and the opportunities within the industry chain for 2026, noting the historical highs in transaction amounts and numbers for domestic innovative drugs going overseas [6][8]. - BeiGene's overseas sales are highlighted, with Q3 2025 global sales surpassing $1 billion and a significant year-on-year profit turnaround [1][6]. - Innovent Biologics is noted for its strategic partnerships and expected profitability in the coming years [2][6]. Section 2: Pharma Sector - Leading companies are rapidly increasing their R&D investments, which is expected to strengthen their innovative pipelines and global competitiveness [3][7]. - Companies like Hansoh Pharmaceutical and China Biologic Products are projected to see substantial growth in their innovative product revenues, with significant contributions expected in the coming years [3][7]. Section 3: CXO Sector - The report indicates a recovery in investment and financing for innovative drugs, which is likely to drive early-stage R&D investments and boost demand [8]. - Emerging fields such as peptides and ADCs are expected to open new growth opportunities, with a recommendation to focus on companies like WuXi AppTec and WuXi Biologics [8].

Core Viewpoint - The domestic R&D demand is showing marginal improvement, driven by the overseas expansion of innovative drugs, leading to a recovery in R&D orders and stabilization of industry prices after a decline in 2023. The CRO sector is expected to see better performance growth by 2026, while the CDMO industry has also reached a bottom and is poised for continued strong growth due to robust demand for new molecules and new orders [1][2][3]. CRO Sector - The domestic R&D demand is recovering, with an increase in orders and stabilization of prices, indicating a clear upward trend for CRO companies. Clinical CROs like Tigermed, Nossan, and Prasis are expected to see revenue growth turning positive by 2025, with significant contributions from overseas business [2][3]. - The recognition of domestic CRO clinical data is improving, which is beneficial for companies like Tigermed [2]. CDMO Sector - The CDMO sector has seen a recovery in performance, with new orders continuing to improve quarterly. The global demand for innovative drug R&D is driving growth in new orders and backlog [3]. - The industry is benefiting from increased capacity utilization and profitability, with a strong certainty of performance and profit growth expected to continue into 2026 [3]. Life Sciences Sector - The life sciences upstream sector is experiencing a dual drive from domestic substitution and overseas expansion, with urgent demand for domestic alternatives in areas like cell culture media and biological reagents. Companies are expected to capture market share through new product categories and cost-effective offerings [4]. - The demand for specific segments such as drug efficacy, antibodies, and proteins is increasing, indicating a clear long-term growth logic for the industry [4]. API Sector - The raw material pharmaceutical industry is currently in a phase of price bottoming and supply surplus, with traditional product performance under pressure. However, companies are extending their business into generics, innovative drugs, and specialty APIs, which may lead to value reconstruction through business structure optimization [5]. - The valuation of raw material pharmaceutical companies is at a low point, presenting opportunities based on changes in new business layouts [5]. Investment Recommendations - For clinical and preclinical CROs, companies like Tigermed, Nossan, and Yinos are recommended due to the gradual recovery of the industry and expected improvement in order structure [6]. - In the CDMO sector, companies such as WuXi AppTec, WuXi Biologics, and others with strong fundamentals and capacity advantages are highlighted for their potential benefits from industry recovery and high demand for new molecules [6]. - In the life sciences upstream sector, companies like Baitai Biotechnology and others are recommended due to accelerated domestic substitution and strong overseas growth [6]. - Companies like Pro Pharma and Huahai Pharmaceutical are noted for their new business layouts that are expected to contribute significant value increments [6].

Core Viewpoint - Jianyin International has raised the target price for WuXi AppTec (02268) by 25% from HKD 72 to HKD 90, maintaining an "outperform" investment rating [1] Company Summary - WuXi AppTec is recognized as a leader in the global ADC/XDC contract research outsourcing sector, expected to sustain high revenue growth due to low entry barriers and high market demand [1] - The total number of clients for WuXi AppTec is projected to increase from 345 in 2023 to 499 in 2024, and further to 563 by the first half of 2025, indicating strong order growth [1] - The total order amount for the first half of 2025 is expected to reach USD 1.3 billion, reflecting a year-on-year growth of 58%, while the 2024 figure is anticipated to grow by 71% [1] Capital Expenditure and Financial Projections - The company has outlined a new capacity expansion plan with total capital expenditures of RMB 7 billion from 2026 to 2029 to meet the rising demand for ADC/XDC [1] - Jianyin International maintains its revenue forecast for WuXi AppTec for the full year of 2025, projecting a year-on-year increase of 45%, with a 62% increase expected in the first half of 2025, aligning with market expectations [1] - The forecast for capital expenditures in 2025 remains unchanged at RMB 1.56 billion, with RMB 900 million and RMB 450 million allocated for facilities in Singapore and WuXi, respectively [1] - The company is expected to achieve positive free cash flow by the end of 2026, reaching RMB 555 million [1]

Core Viewpoint - Jianyin International has raised the target price for WuXi AppTec (02268) by 25% from HKD 72 to HKD 90, maintaining an "outperform" investment rating [1] Company Performance - WuXi AppTec is recognized as a leader in the global ADC/XDC contract research outsourcing sector, expected to sustain high revenue growth due to low entry barriers and high market demand [1] - The total number of clients is projected to increase from 345 in 2023 to 499 in 2024, reaching 563 by the first half of 2025 [1] - Strong order growth is anticipated, with total orders expected to increase by 58% year-on-year in the first half of 2025, amounting to USD 1.3 billion, following a 71% year-on-year growth in 2024 [1] Capital Expenditure and Financial Forecast - The company has outlined a new capacity expansion plan with total capital expenditures of RMB 7 billion from 2026 to 2029 to meet the rising demand for ADC/XDC [1] - Jianyin International maintains its existing forecast for WuXi AppTec's total revenue in 2025, projecting a 45% year-on-year increase (62% year-on-year increase in the first half of 2025), aligning with market expectations [1] - The forecast for capital expenditures in 2025 remains unchanged at RMB 1.56 billion, with RMB 900 million and RMB 450 million allocated for facilities in Singapore and WuXi, respectively [1] - Positive free cash flow is expected to be achieved by the end of 2026, reaching RMB 555 million [1]

Core Viewpoint - WuXi AppTec (02268.HK) experienced a significant increase in stock price, rising over 5% in the morning session on November 13, with a current price of 70.8 HKD and a trading volume of 145 million HKD [2] Summary by Category - **Stock Performance** - WuXi AppTec's stock rose by 4.89% to reach 70.8 HKD [2] - The trading volume was reported at 145 million HKD [2]

Core Viewpoint - WuXi AppTec (02268) has seen a strong stock performance, with a recent increase of 4.89% to HKD 70.8, driven by positive market sentiment and favorable analyst reports [1] Group 1: Market Performance - The MSCI China Healthcare Index has risen 59.5% year-to-date, outperforming the MSCI China Index by 24% [1] - The pharmaceutical sector has experienced a correction, declining approximately 10% since early October [1] Group 2: Analyst Insights - CMB International's latest report highlights the attractiveness of undervalued pharmaceutical companies, including WuXi AppTec, amid a recovering capital market and increasing demand for innovative drug development in China [1] - Goldman Sachs reports that WuXi AppTec's order momentum remains strong, particularly from U.S. clients, with a target of 45% year-on-year revenue growth on track [1] Group 3: Future Prospects - The company is actively negotiating contracts for its Singapore facility, expecting to sign several agreements by year-end, although revenue contributions from this facility will be limited until 2027 due to capacity expansion timelines [1] - The clinical development of authorized innovative drug pipelines overseas is anticipated to be a significant catalyst for the innovative drug sector [1]

Core Viewpoint - WuXi AppTec (02268) has shown a strong performance with a stock price increase of 4.89% to HKD 70.8, amid a broader recovery in the healthcare sector, despite a recent pullback in the pharmaceutical market [1] Group 1: Market Performance - WuXi AppTec's stock rose over 5% in the morning session, with a trading volume of HKD 145 million [1] - The MSCI China Healthcare Index has increased by 59.5% year-to-date, outperforming the MSCI China Index by 24% [1] Group 2: Analyst Insights - CCB International's latest report highlights that despite a 10% pullback in the pharmaceutical sector since early October, undervalued pharmaceutical companies like WuXi AppTec remain attractive [1] - The firm anticipates a recovery in capital market financing activities and an expansion in the overseas trading scale of innovative drugs, alongside a rebound in domestic R&D demand for innovative drugs [1] Group 3: Company Performance and Prospects - Goldman Sachs reports that WuXi AppTec's order momentum remains strong, particularly from U.S. clients, with a target of 45% year-on-year revenue growth on track [1] - The company is actively negotiating contracts for its Singapore facility, expecting to sign several agreements by year-end, although revenue contributions from this facility will be limited until 2027 due to capacity expansion timelines [1]

Core Insights - Jiangyin WuXi AppTec Co., Ltd. has recently established Jiangyin WuXi HeLian Biotechnology Co., Ltd. with a registered capital of 215 million yuan [1] Company Information - The legal representative of the newly established company is Jincai Li [1] - The business scope includes drug production, drug import and export, entrusted drug production, domestic trade agency, offshore trade operations, import and export commodity inspection and appraisal, chemical product sales, general cargo warehousing services, and cargo packing services [1] - The company is wholly owned by Wuxi WuXi HeLian Biotechnology Co., Ltd. [1]