BOCI: Raises WuXi AppTec's target price to HK$81 and raises earnings forecasts for this year and next year.

On March 21, Bank of China International issued a research report pointing out that WuXi AppTec (02359. HK) core business (excluding COVID commercialization projects) grew by 5.2% year-on-year last year, and TIDES revenue increased by 70% year-on-year; Fourth-quarter net profit increased 27% quarter-on-quarter and revenue increased 10% quarter-on-quarter, highlighting the strong recovery trend. Driven by strong demand from the world’s top pharmaceutical companies and continued capacity expansion in Switzerland, the United States and Singapore, the company’s order intake reached a record $49.3 billion, up 47% year-on-year, up from 35% year-on-year in the first nine months of last year. Looking ahead to 2025, the bank expects WuXi AppTec to return to double-digit growth, with revenue expected to grow by 10% to 15% year-on-year to between RMB41.5 billion and RMB43 billion, benefiting from the strong momentum of TIDES and CDMO services. The bank raised WuXi AppTec’s earnings forecasts for this year and next year by 13% and 26%, respectively, and raised the target price from HK$62 to HK$81, maintaining a “buy” rating.