Citi raised WuXi AppTec's target price to HKD 113.7 due to strong performance in the second quarter.

GoldenOctober2024

Jin10 data reported on July 29 that Lyon published a report indicating that WuXi AppTec (02359.HK) is expected to have a 20% and 48% year-on-year rise in revenue and adjusted net profit not adhering to international financial reporting standards for the second quarter of 2025, respectively, in line with the earnings forecast released on July 10, 2025. The company has raised its revenue growth guidance for continuous operations in 2025 from 10% to 15% to 13% to 17%, and the free cash flow guidance from 4 billion to 5 billion yuan to 5 billion to 6 billion yuan. Considering the strong performance in the first half of the year, the revised revenue guidance does not appear aggressive, and it reaffirms that the adjusted net profit margin not adhering to international financial reporting standards will improve compared to 2024. Lyon has correspondingly raised its forecasts for WuXi AppTec’s annual revenue and net profit for 2025 to 2027, by 3% to 4% and 13% to 17%, respectively, to reflect the latest guidance. The target price for WuXi AppTec H shares has been raised from 92.40 HKD to 113.70 HKD, maintaining an outperform investment rating.

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