HK Stock Market Move | WuXi AppTec (02359) rises by nearly 6% as company sees strong growth in new signed orders. Daiwa maintains confidence in the delivery of TIDES revenue for the year.

WuXi AppTec (02359) rose nearly 6%, as of the press release, it increased by 5.84% to 157.5 Hong Kong dollars, with a turnover of 2.25 billion Hong Kong dollars. On the news front, Daiwa issued a research report stating that it has significantly raised WuXi AppTec's target price from 138 Hong Kong dollars to 190 Hong Kong dollars, maintaining a "buy" rating and listing it as one of the preferred stocks in the Chinese CXO industry. It also adjusted the non-IFRS net profit forecast for this year and next year by 13.5% and 21.3%. The report mentioned that the company's first quarter operating revenue increased by 39.4% year-on-year, and adjusted non-IFRS net profit increased by 71.7% year-on-year, both exceeding market expectations and the company's guidance. This was mainly due to the contribution of the small molecule CDMO business, an increase in project deliveries, and the push from the low base effect in the first quarter of 2025. Daiwa stated that the new signed orders for the TIDES business grew by about 20% during the period, and the management revealed expectations for more project deliveries in the coming quarters. Daiwa maintained its guidance for a 40% increase in TIDES revenue for the full year, along with the ideal growth in new signed orders, showing confidence in the TIDES revenue delivery for 2026. The strong first quarter performance, continuous growth in accumulated orders, and stable performance in new orders all strengthen confidence in a potential upward adjustment of the 2026 fiscal year guidance.