CICC: WUXI BIO (02269) profitability improvement, target price raised by 25% to HKD 60, and earnings forecast adjusted upward.

China International Capital Corporation released a research report stating that based on improvements in operational efficiency, it has raised the adjusted net profit forecasts for WUXI BIO (02269) for 2026 and 2027 by 8% and 9.4%, to 6.665 billion and 7.9 billion RMB, respectively, while maintaining an "Outperform" rating. Due to the recent increase in average valuations for H-share pharmaceutical stocks, the firm has raised the target price for WUXI BIO by 25% to HKD 60, corresponding to expected price-to-earnings ratios of 32.2 times and 27.1 times for the next two years. WUXI BIO's profitability is improving, with continued expansion in its project pipeline and complex molecule business. Its revenue in the first half of the year was 11.787 billion RMB, a year-on-year increase of 18.4%; when calculated at constant exchange rates, the year-on-year increase was 23.4%. The gross profit margin rose by 3.5 percentage points year-on-year to 46.2%. Net profit grew by 4.3% year-on-year to 2.44 billion RMB, while adjusted net profit increased by 38.4% year-on-year to 3.306 billion RMB, with the adjusted net profit margin rising by 4 percentage points year-on-year to 28%.