Zhao Yin Guo Ji·2025-10-28 03:17Company Analysis - WuXi AppTec reported strong Q3 2025 financial results, with revenue increasing by 15.3% year-on-year, and adjusted Non-IFRS net profit rising significantly by 42.0% [2] - The company raised its full-year revenue guidance to a range of RMB 43.5 billion to RMB 44 billion, up from the previous guidance of RMB 42.5 billion to RMB 43.5 billion, indicating robust business execution despite macro uncertainties [2] - As of Q3 2025, the company's backlog for its small molecule D&M business reached RMB 59.88 billion, a year-on-year increase of 41.2%, highlighting its role as a key growth driver [6] Market Performance - The Hang Seng Index closed at 26,434, up 1.05% for the day and 31.77% year-to-date, reflecting positive market sentiment [3] - The Chinese stock market saw gains, with sectors such as materials, information technology, and consumer discretionary leading the way, while telecommunications, finance, and energy lagged [5] - The U.S. stock market also experienced upward momentum, with the S&P 500 and Nasdaq rising by 1.23% and 1.86% respectively, driven by improved risk appetite following U.S.-China trade negotiations [5] Industry Insights - The chemical segment of WuXi AppTec showed signs of recovery, with drug discovery services experiencing a slight revenue decline of 2.0% year-on-year, but the decline is narrowing [7] - The company is witnessing early signs of demand recovery in the industry, attributed to improvements in the macro environment, including a rebound in the domestic capital market and favorable global business development transactions [7] - The management anticipates that the revenue growth from the small molecule D&M segment will significantly impact overall revenue growth, as it constitutes 46% of total revenue in 2024 [6]