Core Viewpoint - Zhongyin International has raised the profit forecast for WuXi AppTec (02359) for 2025 to 2027 by 2.4% to 6.4%, and increased the target price for H-shares from HKD 122 to HKD 127, maintaining a "Buy" rating with a projected P/E ratio of 18 times for next year [1] Financial Performance - WuXi AppTec's Q3 performance exceeded expectations, continuing the strong momentum from the first half of the year, with revenue increasing by 15% year-on-year to RMB 12.1 billion [1] - Net profit rose by 53% year-on-year to approximately RMB 3.5 billion, primarily driven by the ramp-up of late-stage clinical and commercialization projects [1] - Gross margin improved by 7.8 percentage points to 49.8% [1] Order and Growth Outlook - Excluding foreign exchange impacts, new orders for WuXi AppTec increased by 18% year-on-year, with a backlog of orders reaching RMB 60 billion, a 41% year-on-year growth [1] - The company expects to gradually convert this backlog over the next 18 months, supporting visible growth for 2026 [1] - Management has raised the full-year revenue growth guidance to 17% to 18%, up from the previous 13% to 17% [1] Cash Flow and Capital Expenditure - WuXi AppTec's management has adjusted the 2025 free cash flow guidance to RMB 8 billion to 8.5 billion [1] - Capital expenditure has been revised down to RMB 5.5 billion to 6 billion due to project schedule adjustments [1] Global Expansion - The company is steadily advancing its global expansion, with the Singapore API plant expected to be operational by 2027, the U.S. formulation plant projected to start production by the end of 2026, and the expansion of the Swiss base [1] - Management noted that cross-border customer demand remains stable [1]