Oriental Securities: Maintains a "buy" rating on WuXi AppTec, performance guidance shows confidence

Oriental Securities Research Report points out that the profitability of WuXi AppTec is improving, and performance guidance shows confidence. Overall, the revenue momentum is mainly driven by the high-growth TIDES business, and benefiting from continuous optimization of production processes and increasing production efficiency brought by the growth of late clinical and commercialization projects, the profitability performance is further improved. From the perspective of orders, the new signed orders of small molecule D&M and TIDES business in late clinical and commercialization stages continue to grow, and the core business prosperity will continue to drive the stable growth of the company's performance. In 2025, the company's adjusted Non-IFRS gross margin is expected to increase by 6.6 percentage points, adjusted Non-IFRS net profit margin increase by 5.9 percentage points, further enhancing profitability. At the same time, the company expects the overall revenue to reach 51.3-53.0 billion yuan in 2026, with a year-on-year growth of 18-22% in revenue from continuing operations, and expresses confidence in maintaining a stable and resilient level of adjusted Non-IFRS net profit margin in 2026. Based on comparable companies giving a 25x PE multiple for 2026, the corresponding target price is 146.0 yuan, maintaining a "buy" rating.