JPMorgan released a research report stating that WUXI APPTEC's (02359) adjusted net profit margin expansion to 33% is another positive surprise; it currently assigns a target price of HK$142 and an "Overweight" rating. WUXI APPTEC recently issued a profit alert, forecasting a 16% year-on-year sales increase to 45.5 billion yuan for 2025, surpassing the bank's expectation by 2%; adjusted net profit is expected to rise 41% year-on-year to 15 billion yuan, 4% higher than the bank's forecast. The bank believes the better-than-expected performance is primarily driven by continuous capability and capacity enhancements, production process optimization, and improved operational efficiency; it expects the market to react positively to the profit alert.
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