Core Viewpoint - Recently, Shanghai WuXi AppTec New Drug Development Co., Ltd. has undergone a significant change in its registered capital, reducing from approximately 12.46 billion RMB to about 2.58 billion RMB, representing a decrease of approximately 79% [1][1]. Company Summary - The company was established in April 2002 and is wholly owned by WuXi AppTec (603259) [1]. - The legal representative of the company is Zhang Chaohui [1]. - The business scope includes health consulting, pharmaceutical consulting, and self-owned real estate development [1].

Core Viewpoint - Goldman Sachs anticipates a positive market reaction to WuXi AppTec's strong performance and new order momentum, despite concerns regarding the slowdown in TIDES (oligonucleotide and peptide) order reserve growth [1] Financial Performance - WuXi AppTec reported third-quarter revenue of 12.1 billion RMB, representing a year-on-year increase of 15.3% [1] - The management has raised the full-year revenue guidance for 2025 to 43.5 to 44 billion RMB, up from the previous guidance of 42.5 to 43.5 billion RMB [1] - The revenue growth guidance for continuing operations has been adjusted to an annual increase of 17% to 18%, up from the previous range of 13% to 17% [1] Capital Expenditure - The capital expenditure for the third quarter was 1.47 billion RMB, with a total of 3.57 billion RMB for the first nine months [1] - The full-year capital expenditure budget has been revised down to 5.5 to 6 billion RMB, from the earlier estimate of 7 to 8 billion RMB, due to longer-than-expected settlement periods for some projects [1]

Core Viewpoint - WuXi AppTec has announced the sale of its clinical service subsidiaries, aiming to focus on its CRDMO business model and enhance global capabilities while reporting strong financial performance in the first three quarters of the year [1][2][9]. Group 1: Asset Sale Details - WuXi AppTec plans to sell 100% equity of its subsidiaries, Shanghai Kangde Hongyi Medical Clinical Research Co., Ltd. and Shanghai WuXi Jishi Pharmaceutical Technology Co., Ltd., to Hillhouse Capital for a base price of 2.8 billion yuan [1]. - The two subsidiaries generated approximately 1.16 billion yuan in revenue and 90 million yuan in net profit for the first three quarters of 2025, accounting for 3.5% and 0.7% of WuXi AppTec's total revenue and net profit, respectively [2]. Group 2: Strategic Focus - The sale is part of WuXi AppTec's strategy to concentrate on its CRDMO business model, which includes drug discovery, laboratory testing, and process development, thereby providing financial support for global capacity expansion [2][7]. - The company has been optimizing its business structure over the past year, including the sale of its WuXi ATU business in the U.S. and U.K., which contributed 1.32 billion yuan in revenue for 2024 [3]. Group 3: Financial Performance - For the first three quarters of 2025, WuXi AppTec reported revenue of 32.857 billion yuan, a year-on-year increase of 18.61%, and a net profit of 12.076 billion yuan, up 84.84% [9]. - The chemical segment was the largest revenue contributor, generating 25.98 billion yuan, a 29.3% increase year-on-year [10]. - The U.S. market remains the primary revenue source, with 22.15 billion yuan in revenue, reflecting a 31.9% growth [11].

Investment Rating - The report maintains an "Outperform" rating for the company, expecting a relative benchmark index increase of over 10% in the next 12-18 months [20]. Core Insights - The company has raised its full-year performance guidance, anticipating ongoing business revenue growth to shift from 13-17% to 17-18% [4][8]. - As of September 2025, the company's ongoing business orders reached RMB 59.88 billion, reflecting a year-on-year increase of 41.2% [4][8]. - Revenue forecasts for 2025-2027 are projected at RMB 44.02 billion, RMB 48.85 billion, and RMB 55.90 billion, with growth rates of 12.2%, 11.0%, and 14.0% respectively [4][8]. - Net profit attributable to shareholders is expected to be RMB 16.19 billion, RMB 14.68 billion, and RMB 16.88 billion for the same period, with growth rates of 71.3%, -9.3%, and 15.0% respectively [4][8]. - The company’s EPS is projected at RMB 5.42, RMB 4.92, and RMB 5.66 for 2025-2027 [4][8]. Financial Summary - The total revenue for 2023 is reported at RMB 40.34 billion, with a slight increase of 2.5% [3]. - The net profit for 2023 is RMB 9.61 billion, showing a growth of 9.0% [3]. - The company’s net asset return rate is expected to be 21.3% in 2025, with a PE ratio of 19.14 [3][4]. - The small molecule CDMO business reported revenue of RMB 14.24 billion in the first three quarters of 2025, a year-on-year increase of 14.1% [4][8]. - The TIDES business experienced significant growth, with revenue reaching RMB 7.84 billion, up 121.1% year-on-year [4][8]. Business Developments - The company has completed the capacity expansion for polypeptides, with solid-phase synthesis reactors exceeding 100,000L by September 2025 [4][8]. - An agreement was reached to sell 100% of its China clinical service research business for RMB 2.8 billion, while maintaining stable growth in its biological business [4][8]. - The laboratory analysis and testing revenue was RMB 2.96 billion, reflecting a 2.7% year-on-year increase [4][8].

Core Viewpoint - Daiwa's research report indicates that WuXi AppTec's Q3 revenue increased by 15% year-on-year to 12.1 billion yuan, and net profit rose by 53% year-on-year to 3.5 billion yuan, exceeding market expectations by 5% and 15% respectively [1] Financial Performance - Revenue growth was primarily driven by a 23% year-on-year increase in the chemical business and a 7.8 percentage point rise in gross margin [1] - The company has raised its full-year revenue guidance for continuing operations from a growth of 13-17% to a growth of 17-18% [1] - The total revenue target for the year has been adjusted from 42.5-43.5 billion yuan to 43.5-44 billion yuan [1] Analyst Rating - Daiwa maintains a "Buy" rating for WuXi AppTec, based on the upward revision of gross margin forecasts [1] - The target price has been increased from 134 HKD to 138 HKD [1]

Core Viewpoint - Daiwa's report indicates that WuXi AppTec (603259)(02359) achieved a 15% year-on-year revenue increase in Q3, reaching 12.1 billion RMB, and a 53% year-on-year net profit increase to 3.5 billion RMB, exceeding market expectations by 5% and 15% respectively [1] Financial Performance - Q3 revenue increased by 15% year-on-year to 12.1 billion RMB [1] - Q3 net profit increased by 53% year-on-year to 3.5 billion RMB [1] - Chemical business revenue grew by 23% year-on-year [1] - Gross margin improved by 7.8 percentage points year-on-year [1] Guidance and Target Adjustments - The company raised its full-year revenue guidance for continuing operations from a growth of 13-17% to a growth of 17-18% [1] - The total revenue target for the year was adjusted from 42.5-43.5 billion RMB to 43.5-44 billion RMB [1] Analyst Rating and Price Target - Daiwa maintains a "Buy" rating for the company [1] - The target price was increased from 134 HKD to 138 HKD based on the revised gross margin forecast [1]

Core Viewpoint - Daiwa's report indicates that WuXi AppTec (02359) experienced a 15% year-on-year increase in revenue for Q3, reaching 12.1 billion RMB, and a 53% increase in net profit to 3.5 billion RMB, surpassing market expectations by 5% and 15% respectively [1] Financial Performance - Q3 revenue increased by 15% year-on-year to 12.1 billion RMB [1] - Net profit rose by 53% year-on-year to 3.5 billion RMB [1] - Chemical business revenue grew by 23% year-on-year [1] - Gross margin improved by 7.8 percentage points year-on-year [1] Guidance and Ratings - The company raised its full-year revenue guidance for continuing operations from a growth of 13-17% to 17-18% [1] - The total revenue target for the year was adjusted from 42.5-43.5 billion RMB to 43.5-44 billion RMB [1] - Daiwa maintains a "Buy" rating and has increased the target price from 134 HKD to 138 HKD based on the revised gross margin forecast [1]

Core Viewpoint - Goldman Sachs anticipates a positive market reaction to WuXi AppTec's strong performance and new order momentum, despite concerns regarding the slowdown in TIDES order reserve growth [1] Financial Performance - WuXi AppTec reported third-quarter revenue of 12.1 billion RMB, representing a year-on-year increase of 15.3%, or a 19.7% increase when considering continuing operations [1] - The TIDES business experienced a significant year-on-year growth of 91%, contributing to 23% of total revenue [1] Target Price and Valuation - Goldman Sachs set a 12-month target price of 109.6 HKD for WuXi AppTec's Hong Kong stock, based on a forward price-to-earnings ratio of 18 times, while the target price for the Shanghai stock is 105.6 RMB [1] Revenue Guidance - WuXi AppTec's management raised the full-year revenue guidance for 2025 to 43.5 to 44 billion RMB, up from the previous guidance of 42.5 to 43.5 billion RMB [1] - The revenue growth guidance for continuing operations was also increased to 17% to 18% year-on-year, compared to the previous range of 13% to 17% [1] Capital Expenditure and Cash Flow - The third-quarter capital expenditure was 1.47 billion RMB, with a total of 3.57 billion RMB for the first nine months [1] - The full-year capital expenditure budget was revised down to 5.5 to 6 billion RMB from the previous estimate of 7 to 8 billion RMB due to longer-than-expected project settlement cycles [1] - The free cash flow guidance was raised to 8 to 8.5 billion RMB, up from the previous range of 5 to 6 billion RMB [1] - Management reiterated its commitment to advancing global capacity construction [1]

高盛指，药明康德第三季资本支出为14.7亿元人民币(首九个月为35.7亿元)。全年资本支出预算下调至 55亿至60亿元人民币(原为70至80亿元)，因部分项目的结算周期比预期长。因此，自由现金流指引上调 至80亿至85亿元人民币(原为50亿至60亿元)。管理层重申其推进全球产能建设的承诺。 高盛表示，药明康德管理层将2025全年营收指引上调至435至440亿元人民币(原为425至435亿元)，持续 经营业务的营收增长指引上调至年增17%至18%(原为年增13%至17%)，并预期经调整非国际财务报告准 则净利率将有所改善。 智通财经APP获悉，高盛发布研报称，预期市场对药明康德(02359) 强劲的业绩表现，和新订单动能将 作出正面反应，虽然围绕TIDES(寡核苷酸和多肽)订单储备增长放缓可能引发一些争议。药明康德第三 季度收入达121亿元人民币，同比增长15.3%，或按持续经营业务计算则同比增长19.7%。值得注意的 是，TIDES业务同比增长91%，占目前总收入23%。高盛对药明康德港股12个月目标价为109.6港元，基 于12个月前瞻市盈率18倍，药明康德(603259.SH)为目标价105.6元人民币。 ...

Core Viewpoint - The article highlights the strong performance of WuXi AppTec, with significant growth in revenue and net profit for the third quarter of 2025, driven by a focus on CRDMO business and strategic asset divestitures [1][2][4]. Financial Performance - WuXi AppTec reported a Q3 revenue of 12.06 billion yuan, a year-on-year increase of 15.26%, and a net profit attributable to shareholders of 3.52 billion yuan, up 53.27% year-on-year [2][6]. - For the first three quarters of 2025, the company achieved a total revenue of 32.86 billion yuan, representing an 18.61% increase, and a net profit of 12.08 billion yuan, which is an 84.84% increase year-on-year [6][9]. Business Growth Drivers - The growth is attributed to the company's continuous focus on and enhancement of the CRDMO business model, optimization of production processes, and increased efficiency from large-scale clinical and commercialization projects [4][5]. - The chemical business segment is identified as the main growth driver, with revenue reaching 25.98 billion yuan, a 29.3% increase, accounting for nearly 80% of total revenue [5]. Strategic Asset Divestiture - WuXi AppTec announced a strategic plan to sell its clinical research service subsidiaries for 2.8 billion yuan to Hillhouse Capital, aiming to focus on core CRDMO areas [15][17]. - The divestiture is expected to generate significant immediate benefits, with estimated gains exceeding 10% of the company's audited net profit for the recent fiscal year [17]. Market Position and Future Outlook - The company has raised its full-year revenue guidance, expecting a growth rate of 17%-18%, supported by a robust order backlog of 59.88 billion yuan, a 41.2% year-on-year increase [10][13]. - The article notes a strong demand for CRO services, with a projected increase in global drug development outsourcing, indicating a favorable market environment for WuXi AppTec [13][14]. Customer Dependency Risks - WuXi AppTec's revenue heavily relies on overseas clients, particularly from the U.S., which poses risks due to geopolitical uncertainties [14]. - The company reported 22.15 billion yuan in revenue from U.S. clients, a 31.9% increase, while domestic revenue only grew by 0.5% to 5.04 billion yuan [14].