Core Viewpoint - WuXi AppTec has emerged as a leader in the global XDC outsourcing service industry, providing comprehensive R&D and production services from its Wuxi base and expanding to Singapore [1][2]. Industry Summary - The global XDC market is experiencing rapid growth, with the ADC market also expanding significantly. The growth rate in the Chinese market surpasses the global average, driven by advancements in technology that address efficacy and safety issues of ADC drugs [1][2]. - In 2024, 60% of new XDC trials globally will be initiated by Chinese companies, highlighting China's active role in the licensing of XDC-related drugs [2]. Company Summary - WuXi AppTec's total revenue is projected to grow from 311 million yuan in 2021 to 4.052 billion yuan in 2024, reflecting a compound annual growth rate (CAGR) of 135% [2]. - As of the first half of 2025, the company has 19 projects in Phase III clinical trials and 11 in the PPQ stage, with a backlog of orders amounting to 1.329 billion USD, a 58% year-on-year increase [2][3]. - The company is investing heavily in capital expenditures, with over 1.5 billion yuan planned for 2024 and an expected total of over 7 billion yuan from 2026 to 2029 to support R&D and commercial production [3]. - WuXi AppTec is at the forefront of XDC innovation, developing competitive technology platforms such as WuXiDARx conjugation platform and X-LinC linker platform [3]. - The company is rated as a "buy" with a target price of 74.0 HKD, with projected revenue growth of 45.7%, 35.7%, and 30.9% for 2025E, 2026E, and 2027E respectively [3].

Core Viewpoint - 招银国际 has initiated coverage on WuXi AppTec (02268) with a "Buy" rating and a target price of HKD 74 [1] Financial Projections - The company is expected to see revenue growth of 45.7%, 35.7%, and 30.9% for the years 2025 to 2027 [1] - Adjusted net profit is projected to grow by 40%, 32.4%, and 30.8% during the same period [1] Company Positioning - WuXi AppTec has established itself as a leader in the global XDC outsourcing service industry [1] - The company offers "one-stop" XDC research and production services at its Wuxi base and is currently constructing a new facility in Singapore [1] Project Pipeline - The number of projects is rapidly increasing, with 19 Phase III clinical projects and 11 PPQ stage projects as of the first half of this year [1] - Future growth will be supported by ongoing and commercialized projects [1]