Goldman Sachs has released a research report stating that WuXi AppTec (02359) delivered solid third-quarter results and once again raised its guidance, enhancing growth visibility for next year. The investment bank expects a positive market reaction and maintains a "Buy" rating with a 12-month target price of HK$242.6.
WuXi AppTec's third-quarter performance was steady, with revenue growing 38% year-on-year and up 1.1% quarter-on-quarter, broadly in line with expectations. Non-IFRS net profit reached RMB 6.81 billion, up 61.3% year-on-year and 4.2% above the bank's forecast.
The company raised its full-year revenue guidance for this year from a range of RMB 58.5 billion to RMB 60.5 billion to a range of RMB 61 billion to RMB 61.9 billion. Its expected growth rate for continuing operations revenue was upgraded from a year-on-year increase of 35% to 39% to a rise of 40% to 42%, marking the second major upward revision this year.
The bank expects small molecule drug development and manufacturing to remain the primary growth driver. Goldman Sachs also noted that following the recent share price pullback, stronger backlog, accelerated commercialization-stage projects, and a more diversified growth structure will help improve growth visibility for fiscal year 2027.
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