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]
建银国际：上调药明合联(02268)目标价至90港元 维持“跑赢大市”评级