Core Viewpoint - Morgan Stanley expects that the new drug tariff policy will not have a direct impact on Chinese CDMO companies like WuXi AppTec, as clients typically bear the tariff costs, and WuXi AppTec is expanding its production capacity in the U.S. to meet local production demands [1] Group 1: Company Analysis - WuXi AppTec is identified as the largest contract research and manufacturing organization in China, with strong business fundamentals [1] - The competition in the small molecule CRDMO sector is considered relatively mild, which bodes well for WuXi AppTec's market position [1] - The growth momentum of WuXi AppTec's TIDES business remains robust, indicating a positive outlook for the company's future performance [1] Group 2: Market Outlook - Morgan Stanley maintains an "Overweight" rating on WuXi AppTec, with a target price set at HKD 138 [1] - The report follows the announcement by former President Trump regarding a 100% tariff on imported brand-name and patented drugs starting October 1, unless related manufacturers have begun construction of production facilities in the U.S. [1]

Core Viewpoint - Morgan Stanley continues to favor WuXi AppTec (02359) as the top pick in China's CXO industry, highlighting its position as the largest contract research and manufacturing organization in China and expressing optimism about its business fundamentals [1] Group 1: Company Performance - WuXi AppTec is recognized as the largest contract research and development organization in China, indicating strong market presence [1] - The competition in the small molecule CRDMO sector is relatively mild, suggesting a favorable operating environment for WuXi AppTec [1] - The growth momentum in WuXi TIDES business remains robust, contributing positively to the company's outlook [1] Group 2: Market Impact - Morgan Stanley maintains an "overweight" rating for WuXi AppTec with a target price of HKD 138 [1] - The recent announcement by former President Trump regarding a 100% tariff on imported brand-name and patented drugs starting October 1 is not expected to directly impact WuXi AppTec and similar Chinese CDMO companies, as clients typically bear the tariff costs [1] - WuXi AppTec is expanding its production capacity in the U.S. to meet client demands for localized production, which may mitigate potential impacts from the tariff policy [1]

摩根大通发表研究报告指，日前参与药明康德2025年投资者日，适逢美国总统特朗普宣布计划自10月1 日起对进口品牌药及专利药征收100%关税，除非相关药厂已在美国动工兴建生产设施。摩通预期今次 药品关税政策对药明康德等中国CDMO企业不会构成直接影响，因客户通常负责支付关税，而且药明康 德正在扩充其美国产能，以满足客户对本地化生产的需求。 摩通继续列药明康德为中国CXO行业的首选股，指出该公司是中国收入规模最大的合同研究开发与生 产组织，看好其业务基本面，认为小分子CRDMO领域竞争相对温和，同时药明TIDES业务增长动力持 续强劲，维持"增持"评级，目标价138港元。 ...

Core Viewpoint - Daiwa maintains a "Buy" rating for WuXi AppTec, raising the target price from HKD 128 to HKD 134, reflecting a 3% increase in revenue and earnings per share forecasts for the company from 2023 to 2027 due to higher revenue expectations in its chemical business [1] Group 1: Financial Performance - The company produced 4 out of the 10 best-selling chemical drugs last year and is expected to have 8 out of 40 small molecule drugs approved by the FDA between 2024 and the first half of 2025 [1] - Management anticipates that WuXi TIDES business will see over 80% year-on-year revenue growth this year [1] Group 2: Production Capacity and Future Plans - The first small molecule factory at the Singapore API site is expected to be operational by 2027, followed by the first TIDES factory in the second quarter of 2028, and a second small molecule factory by the fourth quarter of 2029 [1] - The DP site in Delaware, USA, is expected to be operational by the fourth quarter of next year, with sterile filling/completion capabilities anticipated by the fourth quarter of 2027 [1]