Investment Rating - The report maintains a "Buy" rating for WuXi XDC [2][16] Core Insights - WuXi XDC reported a strong performance in the first half of 2025, with revenue increasing by 62.2% year-on-year to RMB 2.70 billion and net profit rising by 52.7% to RMB 746 million. Adjusted net profit, excluding one-off items, grew by 50.1% to RMB 801 million, aligning with expectations. The blended gross margin improved by 4.0 percentage points to 36.1% due to higher capacity utilization and rapid ramp-up of new capacities [5][12][16] Revenue Growth - Revenue from North America and Europe saw significant growth, increasing by 69% and 95% year-on-year, reaching RMB 1.39 billion and RMB 605 million, respectively. Together, these regions accounted for 74% of total revenue, up from 68% in the same period last year. Revenue from the China market grew by 11% to RMB 485 million, representing 18% of total revenue [6][13] Market Position and Customer Base - The cumulative number of customers increased to 563, with 33% of revenue coming from the top 20 global pharmaceutical companies. The company's market share rose from 9.9% in 2022 to 22.2% in the first half of 2025. The total backlog of orders reached USD 1.33 billion, reflecting a year-on-year increase of 57.9% [7][14] Capacity Expansion - WuXi XDC is expanding its production capacity under a "global dual sourcing" strategy. The Wuxi site has launched a new campus and is ramping up production capabilities. The Singapore facility is expected to commence GMP operations in the first half of 2026, enhancing the company's ability to provide comprehensive services from preclinical to commercial manufacturing [8][15] Financial Projections - The report raises adjusted earnings per share (EPS) forecasts for 2025 from RMB 1.22 to RMB 1.33, for 2026 from RMB 1.54 to RMB 1.68, and for 2027 from RMB 1.94 to RMB 2.04. The target price is increased from HKD 55.2 to HKD 70.3, indicating a potential upside of 29% [16]
药明合联（02268）：上半年业绩靓丽，市场份额持续提升