Core Viewpoint - UBS reaffirms a "Buy" rating for WuXi AppTec (02268) based on its leading bioconjugate CRDMO platform, ongoing capacity expansion, and manageable geopolitical risks, setting a target price of HKD 89.5 [1] Group 1: Company Performance - WuXi Biologics (02269), the parent company of WuXi AppTec, is expected to add over 70 projects from WuXi AppTec in 2025, significantly higher than the previous guidance of over 60 [1] - The company anticipates a compound annual growth rate (CAGR) of approximately 30% in revenue over the next five years, outpacing the industry average [1] Group 2: Capacity Expansion - The construction of the Singapore production facility was completed last year, with plans to achieve GMP certification in the first half of this year, and 200 employees have been recruited [1] - From 2026 to 2029, the company plans to invest approximately RMB 7 billion for domestic and overseas capacity expansion, including potential expansions in Europe and the U.S. and market development in the Middle East [1] Group 3: Regulatory Environment - In response to the U.S. Biodefense Act, WuXi Biologics is actively communicating with clients and the U.S. government, indicating a low likelihood of WuXi AppTec being included in related lists, with limited client concerns [1] - The expansion of in-house capacity by multinational pharmaceutical companies in the bioconjugate field is limited, and the outsourcing ratio is expected to remain high [1] - With a strong business track record, WuXi AppTec is well-positioned to continue securing new orders globally, including in North America [1]
瑞银：药明合联(02268)去年新增项目量胜预期 重申“买入”评级