Lyon: WUXI XDC (02268) improves profit visibility, target price raised to 80.9 Hong Kong dollars.

Lyon released a research report, stating that the performance of WUXI XDC (02268) in the second half of last year met expectations, with the guidance for 2026 better than expected. The management expects fixed exchange rate revenue, including BioDlink, to grow by at least 35%, excluding BioDlink, CDMO revenue to grow by at least 40%, and the profit margin to remain stable compared to the previous year. It is expected that WUXI XDC's revenue will grow by 38%, 31%, and 28% respectively from this year to 2028, with the net profit forecast raised by 6% to 13%, and the target price raised from HK$70.7 to HK$80.9, reiterating an "outperform" rating. The bank stated that WUXI XDC reaffirmed its target for an average annual compound growth rate of 30% to 35% for revenue from 2025 to 2030, with a 20% target for CMO portfolio in 2030, and a 50% growth in outstanding orders in 2025. The bank believes that this enhances the company's profit visibility and alleviates investors' concerns about the slowdown in growth.