Citi Research: Maintains Buy rating on WuXi AppTec, benefiting from steady improvement in industry sentiment.

Bank of Communications International released a research report indicating that the investment and BD transactions in the global CXO track continued to be highly active in early 2026, following the high activity of the past two years. It is optimistic about WuXi AppTec's benefit from the key trend of steadily increasing industry prosperity, forecasting a more than 20% growth in comprehensive orders from 2025 to 2027, with a rapid increase in post / commercial orders contribution, and an expansion of market share. The bank slightly lowered the group's revenue and adjusted net profit forecast for 2025 to 2027 by 1% to 3% based on the company's 2025 profit forecast, to 5.88 billion, 8.28 billion, and 11.11 billion RMB, as well as 1.6 billion, 2.45 billion, and 3.42 billion RMB respectively, corresponding to a 38% and 46% CAGR for 2025 to 2027. The strong growth is mainly due to the rapid growth of comprehensive CMC orders, especially the increase in post-clinical / commercial stage orders. The bank maintains its "buy" rating with a target price of HK$91, corresponding to a P/E ratio of 42 times in 2026, considering the company's leading position in the high-prosperity XDC CRDMO track, and its high investment value, continuing to select the company as a key recommended target in the CXO industry.