Core Viewpoint - WuXi AppTec has reported a strong performance in Q3 2025, with revenue and net profit both increasing, while also announcing a strategic focus on its CRDMO (Contract Research, Development, and Manufacturing) core business by divesting its clinical operations [1][2][5]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 32.86 billion yuan, a year-on-year increase of 18.6%, and a non-GAAP net profit attributable to shareholders of 9.52 billion yuan, up 42.5% [2][3]. - In Q3 alone, revenue reached 12.06 billion yuan, reflecting a 15.3% year-on-year growth, while non-GAAP net profit surged by 73.8% to 3.94 billion yuan [2][3]. Business Segments - The chemical business was the largest contributor to revenue, generating 25.98 billion yuan, a 29.3% increase year-on-year, driven by strong performance in small molecule drug discovery and development [4][5]. - The company reported a backlog of orders in its continuing operations amounting to 59.88 billion yuan, a 41.2% increase year-on-year, indicating robust demand [4]. Strategic Moves - WuXi AppTec announced the sale of its clinical research subsidiaries, Shanghai Kande Hongyi Medical Research Co., Ltd. and Shanghai WuXi Jishi Pharmaceutical Technology Co., Ltd., to Hillhouse Capital for a base price of 2.8 billion yuan [7][10]. - The divestiture is part of the company's strategy to concentrate on its CRDMO business model, which is expected to enhance its global capabilities and operational efficiency [12]. Operational Efficiency - The company has focused on optimizing production processes and improving operational efficiency, which has contributed to increased profitability and capacity utilization [5][6].

药明康德第三季收入同比升15%至121亿元人民币，超出该行及市场预估的114亿元及115亿元人民币;纯 利同比升53%至35亿元人民币，高于该行及市场预估的33亿元及31亿元人民币。非国际财务报告准则净 利润同比升42%至42亿元人民币，调整后的非国际财务报告准则毛利率同比升6.1个百分点至44.5%。截 至第三季末持续营运订单储备同比升41%至599亿元人民币。公司同时宣布剥离临床合同研究组织/现场 管理组织业务，初始交易对价为28亿元人民币。该行认为此次出售对药明康德有利，因公司可专注核心 合同研究、开发与制造组织业务及其全球布局扩张。 智通财经APP获悉，瑞银发布研报称，上调对药明康德(02359)今年每股盈利预测23.4%，明年至2028年 盈测上调0.3%至0.9%。对该股目标价由136.1港元上调至138.4港元，评级"买入"。 ...

Core Viewpoint - WuXi AppTec (603259) is focusing on its CRDMO (Contract Research, Development, and Manufacturing Organization) business model by divesting its 100% stakes in Kangde Hongyi and Jinshi Pharmaceutical for a base transfer price of RMB 2.8 billion, aiming to enhance its global capabilities and production capacity [1] Group 1: Transaction Details - The divestiture involves a transfer of 100% equity stakes in Kangde Hongyi and Jinshi Pharmaceutical to a newly established company by Hillhouse Capital through its private equity fund [1] - The transaction is aligned with WuXi AppTec's strategy to concentrate on drug discovery, laboratory testing, and process development and manufacturing services [1] Group 2: Financial Impact - The target companies generated approximately RMB 1.16 billion in total revenue from January to September 2025, accounting for about 3.5% of WuXi AppTec's total revenue for the same period [1] - The net profit of the target companies for the same period is approximately RMB 90 million, representing about 0.7% of WuXi AppTec's net profit [1]

Core Viewpoint - WuXi AppTec (药明康德) reported strong financial performance for the first three quarters of 2025, with significant growth in revenue and net profit, indicating a positive outlook for the company's core CRDMO business [1] Financial Performance - For the first three quarters of 2025, the company achieved operating revenue of RMB 32.86 billion, representing a year-on-year increase of 18.6% [1] - The revenue from continuing operations grew by 22.5% year-on-year [1] - The net profit attributable to shareholders reached RMB 12.076 billion, marking an impressive year-on-year growth of 84.84% [1] Future Projections - The company expects the revenue from continuing operations to return to double-digit growth, with the growth rate revised from 13-17% to 17-18% [1] - Overall annual revenue forecast has been adjusted from RMB 42.5-43.5 billion to RMB 43.5-44 billion [1] Business Focus - WuXi AppTec will concentrate on its core CRDMO business and aims to continuously improve operational efficiency [1] Order Backlog - As of September 30, 2025, the company had a backlog of orders for continuing operations amounting to RMB 59.88 billion, reflecting a year-on-year increase of 41.2% [1] Revenue Breakdown by Region - Revenue from U.S. clients was RMB 22.15 billion, up 31.9% year-on-year [1] - Revenue from European clients reached RMB 3.84 billion, growing by 13.5% year-on-year [1] - Revenue from Chinese clients was RMB 5.04 billion, with a modest increase of 0.5% year-on-year [1] - Revenue from other regions amounted to RMB 1.42 billion, showing a year-on-year growth of 9.2% [1]

Core Viewpoint - WuXi AppTec is divesting its clinical research services business for 2.8 billion yuan to focus on its core CRDMO (Contract Research, Development, and Manufacturing) strategy, which is expected to enhance its global capabilities and production capacity [1][3][6]. Business Divestiture - The company announced the sale of 100% equity in its subsidiaries, Shanghai Kangde Hongyi Medical Clinical Research Co., Ltd. and Shanghai WuXi Jishi Pharmaceutical Technology Co., Ltd., for 2.8 billion yuan to a newly established company under Hillhouse Capital [1][4]. - Kangde Hongyi reported revenues of 291 million yuan and 186 million yuan for 2024 and the first three quarters of 2025, respectively, with net losses of 42 million yuan and 75 million yuan during the same periods [5][6]. - In contrast, WuXi Jishi showed stable performance with revenues of 1.338 billion yuan and 979 million yuan for 2024 and the first three quarters of 2025, respectively, and net profits of 313 million yuan and 162 million yuan [5][6]. Financial Impact - The combined revenue contribution of the two companies was approximately 1.16 billion yuan for the first nine months of 2025, accounting for about 3.5% of WuXi AppTec's total revenue during that period [6]. - The company anticipates that the transaction will yield a profit exceeding 10% of its most recent audited net profit, which could translate to approximately 945 million yuan based on a net profit of 9.45 billion yuan for 2024 [8]. Strategic Focus - The divestiture aligns with WuXi AppTec's ongoing strategy to streamline operations and concentrate on its CRDMO core business, which includes drug discovery, laboratory testing, and process development and manufacturing services [3][6]. - The company has previously engaged in similar asset sales to enhance its focus on CRDMO, including the sale of its WuXi ATU business in late 2024 [9]. Market Reaction - Following the announcement, WuXi AppTec's stock saw a significant increase, with A-shares rising over 6% and H-shares increasing by over 7% on October 27 [3]. Performance Update - For the first three quarters of 2025, WuXi AppTec reported revenues of 32.857 billion yuan, a year-on-year increase of 18.61%, and a net profit of 12.076 billion yuan, reflecting an 84.84% growth [11]. - The company has raised its full-year performance guidance for 2025, expecting revenue growth to return to double digits, adjusting the growth rate from 13-17% to 17-18% [11].

2025年10月26日，药明康德（603259）(603259.SH/02359)公布第三季度报告：前三季度累计收入为 328.6亿元，同比增长18.6%；公司第三季度更是创下历史单季度新高，公司在各项利润口径上的增长速 度均超出营收增幅。药明康德对全年业绩预期再次上调，将全年收入目标提高至435-440亿元。 ...

Core Insights - The company reported strong financial performance for Q1-Q3 2025, with revenue of 32.86 billion yuan, a year-on-year increase of 18.6%, and a net profit of 12.08 billion yuan, reflecting a significant year-on-year growth of 84.8% [1] - The company has raised its revenue growth guidance for 2025 from 13-17% to 17-18%, driven by robust demand in core business areas and improved operational efficiency [2] - The company plans to divest its clinical research services business for 2.8 billion yuan, which is expected to help focus on core operations and accelerate global capacity expansion [2] Financial Performance - Revenue for Q1-Q3 2025 reached 32.86 billion yuan, with a 22.5% year-on-year increase in continuing operations revenue [1] - Adjusted non-IFRS net profit was 10.54 billion yuan, up 43.4% year-on-year, with a net profit margin of 32.1%, an increase of 5.6 percentage points year-on-year [1] - The company’s continuing operations backlog reached 59.88 billion yuan, a year-on-year increase of 41.2% [2] Business Segments - The small molecule CDMO and TIDES segments showed strong growth, with WuXi Chemistry generating 25.98 billion yuan in revenue, a year-on-year increase of 29.3% [2] - TIDES revenue surged by 121.1% year-on-year to 7.84 billion yuan, while D&M revenue increased by 14.1% year-on-year to 14.24 billion yuan [2] - The drug safety evaluation segment maintained industry leadership, with laboratory analysis and testing revenue of 1.08 billion yuan, reflecting a year-on-year increase of 2.7% [2] Profit Forecast and Valuation - The company has revised its earnings forecasts for 2025 and 2026 upwards by 6.0% and 2.8%, respectively, to 15.63 billion yuan and 14.82 billion yuan [3] - Current A-shares are valued at 19.8x and 20.9x PE for 2025 and 2026, while H-shares are valued at 19.3x and 20.1x PE for the same periods [3] - Target prices for A-shares and H-shares have been raised by 7.4% to 123.5 yuan and 7.1% to 135.0 yuan, respectively, indicating an upside potential of 19.0% and 22.2% [3]

Investment Rating - The report maintains an "Overweight" rating for several pharmaceutical companies including Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical Group, 3SBio, and Jiangsu Nhwa Pharmaceutical, with related targets such as CSPC Innovation Pharmaceutical [6][28]. Core Insights - The innovative drug sector is experiencing high prosperity, and the report continues to recommend innovative drugs and their industry chain. It highlights the recent global strategic collaboration between Innovent Biologics and Takeda, which is expected to catalyze the innovative drug market [6][29]. - The report notes that the A-Shares pharmaceutical sector underperformed the market in the fourth week of October 2025, with the SW Pharmaceutical and Biological index rising only 0.6% compared to a 2.9% increase in the SHCOMP [8][30]. - In the same period, the Hong Kong pharmaceutical sector also underperformed, while the U.S. pharmaceutical sector performed in line with the market [31][19]. Summary by Sections Continuous Recommendation of Innovative Drugs and Industry Chain - The report emphasizes the ongoing recommendation of innovative drugs and the industry chain, maintaining "Overweight" ratings for various companies including Heng Rui Medicine, Hansoh Pharmaceutical, 3SBio, and Nhwa Pharmaceutical. It also recommends Biopharma/Biotech companies with innovative pipelines and increasing performance, maintaining "Overweight" ratings for Innovent Biologics, Xiamen Amoytop Biotech, and others [6][28]. Performance of A-Shares Pharmaceutical Sector - In the fourth week of October 2025, the A-Shares pharmaceutical sector's performance was weaker than the overall market, with a 0.6% increase compared to the SHCOMP's 2.9% rise. The medical service, pharmaceutical commerce, and medical equipment sub-sectors showed relatively better performance [8][30]. Performance of Hong Kong and U.S. Pharmaceutical Sectors - The Hong Kong pharmaceutical sector underperformed the market with a decline of 0.8%, while the U.S. pharmaceutical sector matched the market performance with a 1.9% increase. Notable stock movements included significant gains for companies like WuXi AppTec and declines for Alphamab Oncology in Hong Kong [31][19].

Core Viewpoint - The A-share and Hong Kong stock markets experienced a collective rise, with the CXO sector leading the pharmaceutical industry, indicating a positive trend in the market [1] Group 1: Market Performance - Key indices in the A-share and Hong Kong markets surged, with the CXO sector leading the pharmaceutical segment [1] - The Hang Seng Biotechnology Index showed fluctuations but ultimately rose, with companies like WuXi AppTec, WuXi Biologics, and WuXi PharmaTech seeing significant gains [1] - The Hang Seng Pharmaceutical ETF (159892) increased by over 1% during intraday trading [1] Group 2: Company Financials - WuXi AppTec's Q3 report revealed a shareholder profit of 11.802 billion yuan for the first three fiscal quarters, marking an 80.65% year-on-year increase [1] - The total revenue for WuXi AppTec reached 32.857 billion yuan, reflecting an 18.61% year-on-year growth [1] Group 3: Industry Outlook - Huafu Securities noted that both macro (overseas investment and financing) and micro (performance of overseas CXO companies) perspectives indicate that the overseas CXO industry is entering a phase of accelerated recovery [1] - There is a need to pay attention to the allocation opportunities in domestic and foreign demand-driven CXO companies [1]

药明康德第三季业绩表现稳健，收入、净利润及订单增长均胜市场预期。期内收入及经调整非国际财务 报告准则净利润分别同比升15%及42%。公司将全年持续经营业务的收入增长指引由13%-17%上调至 17%-18%，并预期全年经调整非国际财务报告准则净利润率将同比进一步提升。该行将药明康德2025至 2027年收入及净利润预测分别上调约2%及4%，以反映第三季业绩超预期及订单持续强劲增长。 智通财经APP获悉，里昂发布研报称，将药明康德H股(02359)目标价由137.1港元升至138.6港元，药明 康德A股(603259.SH)目标价由124.7元上调至126元人民币，均维持"跑赢大市"评级，并将股份列为内地 CRO及CDMO行业的首选。 ...