Core Viewpoint - WuXi AppTec is expected to report significant revenue and profit growth, with a projected revenue increase of at least 45% and a net profit growth of over 38% by 2025, indicating strong business performance and market demand [1] Group 1: Financial Projections - The adjusted net profit is anticipated to grow by over 45%, and if excluding foreign exchange impacts, the growth could exceed 65% [1] - Revenue growth projections for 2025 to 2027 are 45.7%, 36.6%, and 31.7% respectively, while adjusted net profit growth is forecasted at 34.9%, 38.4%, and 32.9% [1] Group 2: Business Development - The company is set to achieve a record of 70 new comprehensive projects in 2025, representing a year-on-year growth of 32% [1] - The number of Process Performance Qualification (PPQ) projects is expected to surge by 125% to 18, highlighting strong commercial production potential [1] Group 3: Strategic Moves - To address increasing customer demand, the company announced a cash offer to acquire at least 60% of Easton Pharmaceuticals, which signifies a strategic enhancement of its production capabilities [1] Group 4: Analyst Rating - The target price for WuXi AppTec has been raised from HKD 74 to HKD 88, with a maintained "Buy" rating [1]

Core Viewpoint - The company forecasts a revenue growth of over 45% year-on-year for 2025, with adjusted net profit (excluding interest income and expenses) also expected to grow over 45% [1][2]. Group 1: Business Performance - The company's core business continues to grow rapidly, solidifying its position as an industry leader, with a projected global market share increase to 24% by 2025 [1]. - The company plans to sign 70 new iCMC projects in 2025, including 22 "winning molecule" projects, with over half being cutting-edge new molecule types or new indications [1]. - The establishment of 10 new PPQ projects, reaching a total of 18 by the end of 2025, lays a solid foundation for revenue growth in the commercialization phase [1]. Group 2: Profitability and Strategic Moves - The company expects a revenue growth rate exceeding 45% in 2025, with gross profit growth surpassing 70%, and adjusted net profit growth (excluding interest income and expenses) also exceeding 45%, with over 65% growth when excluding currency fluctuations [2]. - The company announced a strategic acquisition of Dongyao Pharmaceutical at a maximum total price of approximately HKD 2.79 billion, enhancing its capabilities in the ADC field and shortening capacity expansion cycles [2]. - The company plans to invest over RMB 7 billion from 2026 to 2029 for expansion of conjugation, formulation, and payload connection facilities, with an expansion rate exceeding the industry average [2]. Group 3: Earnings Forecast and Valuation - The company maintains its earnings forecasts for 2025 and 2026, while introducing a net profit forecast of RMB 3.1 billion for 2027 [2]. - The current stock price corresponds to an adjusted P/E of 36.9x for 2026 and 26.9x for 2027, with a target price raised by 17.3% to HKD 88, reflecting an upward potential of 16.2% [2].

Core Viewpoint - The company is expected to achieve strong revenue growth in 2025, with significant increases in gross profit and net profit, driven by robust order acquisition and capacity expansion [1][2]. Group 1: Financial Performance - The company forecasts a revenue increase of over 45%, gross profit growth exceeding 70%, and net profit growth of approximately 38% for 2025 [1]. - Expected revenue for 2025 is around 59.6 billion, with a gross profit of 21.1 billion and a net profit of 14.7 billion [1]. - The gross margin is projected to be approximately 35.4%, an increase of about 5 percentage points from 2024 [1]. Group 2: Project Pipeline and Market Position - The company signed 70 new iCMC projects in 2025, with over half being new molecular projects, indicating a strong pipeline for future growth [2]. - The global market share is expected to rise from 21.7% in 2024 to over 24% in 2025 [2]. Group 3: Capacity Expansion - The company is expanding its production capacity, with existing DP capacity in Wuxi being maintained and expanded, and new capacities in Singapore and other locations expected to come online between 2026 and 2028 [2]. - The acquisition of the Hefei base is expected to enhance POC development and production capabilities, with an annual capacity exceeding 40 kg for peptides [2]. Group 4: Strategic Acquisition - The company plans to acquire Dongyao Pharmaceutical for approximately 30.9 billion HKD, which will strengthen its competitive position in the market [3]. - Dongyao Pharmaceutical has significant production capabilities, including two antibody production lines and three independent ADC production workshops [3].

Core Viewpoint - WuXi AppTec's subsidiary, WuXi Biologics, announced a cash offer to acquire Dongyao Pharmaceutical at a 99% premium, with a maximum bid of HKD 2.79 billion, highlighting the competitive landscape in the ADC CRDMO sector driven by high outsourcing rates [1][2][3] Group 1: Acquisition Details - The acquisition involves a cash offer of HKD 4 per share, significantly higher than Dongyao's previous trading price of around HKD 2, indicating a premium that exceeds the typical range of 30%-50% [2][12] - The ADC market has seen explosive growth, with 21 ADC drugs approved globally by October 2025, leading to a scarcity of production capacity [2][12] - WuXi Biologics aims to enhance its production capabilities through this acquisition rather than building new facilities, which would take 3-5 years and require at least HKD 1 billion in capital [3][13] Group 2: Strategic Intent - The transaction structure allows Dongyao to maintain its listing status, becoming a subsidiary of WuXi Biologics, which can help both companies leverage their strengths for better performance [3][14] - WuXi Biologics holds a 24% market share in the global ADC CRDMO sector, with over 630 clients and 1,291 projects, indicating strong demand for its services [4][14] - The acquisition is expected to further boost WuXi Biologics' revenue growth, projected to exceed 45% in 2025, with gross profit growth over 70% [4][14] Group 3: Financial Position and Future Plans - WuXi Biologics has a robust financial position, having completed a USD 350 million refinancing and holding over USD 900 million in cash, which supports the acquisition [5][15] - The company plans to invest over HKD 7 billion in capital expenditures from 2026 to 2029, aiming for a global production capacity target by 2030 [5][16] - The new Singapore facility is expected to meet the highest GMP compliance standards and is set to begin operations in the first half of 2026 [5][16] Group 4: Industry Context - The ADC CRDMO sector is characterized by high outsourcing rates, with 70% for bioconjugates compared to 34% for biologics, leading to a growing capacity gap in the industry [2][12] - Dongyao Pharmaceutical, previously focused on ADC drug innovation, is transitioning to CRDMO services due to challenges in its core pipeline, making the acquisition a strategic fit [4][15]

Investment Rating - The investment rating for WuXi AppTec (2268 HK) is maintained at "Buy" with a target price of HKD 82.24 [8][14]. Core Insights - WuXi AppTec is expected to see significant revenue growth in 2025, with revenue, gross profit, net profit, and adjusted net profit projected to increase by over 45%, 70%, 38%, and 65% year-on-year, respectively [1][2]. - The company plans to acquire Dongyao Pharmaceutical for approximately HKD 3.09 billion, which is anticipated to enhance its competitive edge and capacity [5][6]. - The demand for Contract Research, Development, and Manufacturing Organization (CRDMO) services is expected to rise as global Antibody-Drug Conjugate (ADC) pipelines commercialize [1][3]. Revenue and Profit Forecast - Revenue for 2025 is estimated at approximately HKD 59.6 billion, with a gross profit of HKD 21.1 billion and a net profit of HKD 14.7 billion [2][12]. - The gross margin is projected to be around 35.4%, an increase of about 5 percentage points from 2024, indicating strong operational efficiency [2][12]. - Adjusted net profit is expected to grow by over 65% for the year, despite a decline in profit margins in the second half of 2025 due to foreign exchange impacts and rising expense ratios [2][12]. Project Pipeline - The company signed 70 new iCMC projects in 2025, with 22 being molecular projects, contributing to a total of 252 iCMC projects [3]. - WuXi AppTec is expected to lead in the development of new conjugated molecules, with over half of the new projects being innovative types [3]. - The global market share is projected to increase from 21.7% in 2024 to over 24% in 2025 [3]. Capacity Expansion - The company is expanding its production capacity, with existing DP capacity in Wuxi being maintained and expanded in 2025 [4]. - New production facilities in Singapore are expected to be operational by mid-2025, with additional overseas capacity coming online in 2026 [4]. - The acquisition of the Hefei base is expected to enhance peptide development and production capabilities, with an annual capacity exceeding 40 kg [4]. Acquisition of Dongyao - The acquisition of Dongyao Pharmaceutical is expected to strengthen WuXi AppTec's existing competitive position, as Dongyao has significant production capabilities and a strong client base [5][6]. - Dongyao operates two antibody bulk production lines and three independent ADC bulk production workshops, which will complement WuXi AppTec's offerings [5]. Earnings Forecast and Valuation - Adjusted net profit forecasts for 2025, 2026, and 2027 are revised to HKD 15.9 billion, HKD 22.4 billion, and HKD 31.6 billion, respectively, reflecting a CAGR of 39% [6][12]. - The target price is based on a PEG ratio of 1.06x for 2026, aligning with comparable companies in the sector [6][14].

（药明生物公告） 近日，药明生物发布公告称，子公司药明合联通过花旗向东曜药业发出自愿有条件现金要约，拟收购其 全部已发行股份（特定除外）并注销全部尚未行使购股权，东曜药业股份自2025年12月29日起暂停买 卖，拟于次日恢复。 此次要约每股4港元，较未受干扰日收盘价溢价约99%，较过去30个交易日平均收盘价溢价约114.67%， 较2024年12月31日每股净资产溢价约280.79%。假设要约获全面接纳，最高总代价约31.047亿港元，要 约人拟以内部资源支付。 交易关键条件是获得有效接纳股份使要约人持有不少于60%投票权，主要股东已签署不可撤销承诺。药 明合联为药明生物控股子公司，此次收购可助其拓展产能、丰富项目与客户群，巩固在ADC CDMO领 域地位。 (编辑：杨燕 林辰) ...

野村发表报告，药明合联发盈喜，预计2025财年收入、毛利、经调整净利润及股东应占净利润按年增长 分别超过45%、70%、45%及38%。该行予其"买入"评级，目标价为82.72港元。该行推算公司2025年下 半年销售收入按年增长33%至31.8亿元，低于市场预期33.3亿元及该行原先预估34.8亿元，毛利达11.3亿 元、意味毛利率按年提升6.2个百分点至35.7%，管理层归因于产品结构优化及成本控制加强，股东应占 净利润及经调整净利润分别按年增长26%(受汇兑影响拖累)及25%，达到7.3亿元(明显低于该行及市场预 期)及8.01亿元。 ...

Group 1 - WuXi AppTec announced a voluntary conditional cash offer to acquire all issued shares of Dongyao Pharmaceutical at a price of HKD 4 per share, representing a premium of approximately 99% over the closing price of HKD 2.01 on the last unaffected trading day [1][3] - The maximum consideration for the acquisition is approximately HKD 2.79 billion, with funding sourced from internal resources [1][3] - Citibank is serving as the financial advisor for this transaction [1] Group 2 - The acquisition aims to expand and acquire additional operational manufacturing capacity in China, aligning with the company's ongoing business development plan [3] - The transaction is expected to enrich the project portfolio and expand the customer base, thereby strengthening the company's market position in the contract development and manufacturing organization (CDMO) sector for antibody-drug conjugates (ADC) [3] - Following the completion of the acquisition, WuXi AppTec plans to maintain Dongyao Pharmaceutical's listing status on the Hong Kong Stock Exchange [3] Group 3 - WuXi AppTec issued a positive earnings forecast for the fiscal year 2025, expecting revenue growth of over 45% year-on-year, gross profit growth of over 70%, and adjusted net profit growth (excluding interest income and expenses) of over 45% [3] - When excluding the impact of exchange rate fluctuations, the expected growth rate is anticipated to exceed 65% [3] - Both WuXi AppTec and Dongyao Pharmaceutical are part of the contract research organization (CRO) sector, focusing on the research and production services of ADCs, which have a high barrier to commercialization [3]

Group 1 - The core point of the news is the significant acquisition activity in the domestic CXO industry, specifically the voluntary conditional cash offer by WuXi AppTec's subsidiary, WuXi Biologics, to acquire all issued shares of Easton Biopharma at a premium of approximately 99% over its undisturbed closing price [1] - The offer price is set at 4 HKD per share, with a maximum total consideration of about 3.1 billion HKD if fully accepted [1] - Following the announcement, Easton Biopharma's stock surged over 78%, while WuXi Biologics' stock fell by more than 4.8% [1] Group 2 - WuXi Biologics is a leading player in the domestic CXO sector, holding a 50.82% stake in WuXi Biologics [1] - WuXi Biologics reported a financial performance forecast for 2025, expecting revenue growth of over 45%, gross profit growth exceeding 70%, and adjusted net profit growth of over 45%, with a projected growth rate exceeding 65% after excluding currency fluctuations [2] - The company plans to invest over 7 billion CNY from 2026 to 2029 to expand its ADC production capacity, significantly outpacing the industry average [2] Group 3 - Easton Biopharma, established in 2010 and listed in 2019, transitioned to the CXO sector in 2020, focusing on biopharmaceutical CDMO services [3] - In the first half of 2025, Easton Biopharma reported revenues of 489 million CNY and a net profit of 4.06 million CNY, with a total of 85 clients served [3] - The company has a flexible production capacity with multiple commercial production lines, including 30,000 liters annual capacity for antibody bulk and 530,000 bottles for ADC formulations [3] Group 4 - On the same day, Aopumai announced the completion of a share transfer with Pengli Biotech, marking the latter as a wholly-owned subsidiary for a transaction price of 1.45 billion CNY [4] - Aopumai, founded in 2013, specializes in cell culture solutions and end-to-end CDMO services, having been listed on the STAR Market in 2022 [4] - Pengli Biotech, established in 2008, is one of the earliest CRO companies focused on preclinical pharmacodynamic research in China [5]

Core Viewpoint - WuXi AppTec (药明合联) announced a proposed acquisition of Easton Biopharma (东曜药业) at a premium of approximately 99%, with the offer price set at 4 HKD per share, aiming to secure at least 60% voting rights in Easton [2][3]. Group 1: Acquisition Details - The acquisition is expected to cost WuXi AppTec up to 2.79 billion HKD [3]. - Both WuXi AppTec and Easton Biopharma operate in the Contract Research Organization (CRO) sector, focusing on Antibody-Drug Conjugates (ADC) manufacturing [3]. - Easton Biopharma transitioned to an ADC contract manufacturing enterprise starting in 2020 [3]. Group 2: Business Performance - WuXi AppTec's business encompasses the entire supply chain for ADCs, including research and production services, and is projected to see revenue growth exceeding 45% year-on-year by 2025 [4]. - Easton Biopharma is expected to achieve its first annual profit of 34.76 million HKD in 2024, but is projected to incur losses again in the first three quarters of 2025 [5]. Group 3: Strategic Rationale - The acquisition aims to address capacity supply constraints faced by WuXi AppTec, as the company is experiencing rapid order growth that outpaces its current production capabilities [6]. - WuXi AppTec's CEO indicated that establishing a new ADC factory takes approximately three years, making the timing of this acquisition strategically advantageous [6]. Group 4: Market Position and Future Plans - WuXi AppTec holds a global market share of over 24% based on projected 2025 revenues, with a long-term growth target of a compound annual growth rate (CAGR) of 30%-35% from 2025 to 2030 [6]. - The company plans to invest over 7 billion RMB in capacity expansion for ADCs, formulations, and linkers from 2026 to 2029, significantly outpacing industry averages [6].