STOCKS | Daiwa Raises WuXi AppTec Target Price to HK$190 and Keeps Buy Rating

Daiwa raised its target price for WuXi AppTec (02359.HK) to HK$190 from HK$138 and maintained a “buy” rating. According to Jin10, Daiwa said WuXi AppTec’s first-quarter continuing-operations revenue rose 39.4% year on year, while adjusted non-IFRS net profit increased 71.7% year on year, both exceeding market expectations and the company’s guidance. Daiwa attributed the outperformance mainly to contributions from the small-molecule CDMO business, a higher number of project deliveries, and a low base effect in the first quarter of 2025. Daiwa kept its full-year guidance for 40% TIDES revenue growth unchanged. It also cited strong growth in newly signed orders and said it remained confident about TIDES revenue delivery in 2026. Daiwa said strong first-quarter results, continued growth in backlog orders, and steady performance in new orders strengthened its confidence that WuXi AppTec’s fiscal 2026 guidance could potentially be raised. Daiwa added that WuXi AppTec’s inclusion on the “1260H list” would not affect the company’s near- to mid-term outlook. It raised its forecasts for adjusted non-IFRS net profit for this year and next year by 13.5% and 21.3%, respectively, and named the stock as one of its top picks in China’s CXO sector.