JPMorgan released a research report stating that WUXI APPTEC's (02359, 603259.SH) first-quarter results significantly exceeded expectations across multiple metrics, with its stock price surging 14% in a single day following the earnings announcement. The post-earnings conference call further confirmed that performance was substantially ahead of forecasts, with fiscal year 2026 profit margins expected to surpass those of 2025. Demand growth appears broad-based, with strength in small-molecule R&D and manufacturing (D&M) driven not only by oral GLP-1 drugs; management also hinted at a potential update to full-year guidance with the second-quarter results. The bank believes the strong first-quarter margins reflect improvements in business mix and execution, rather than short-term, one-off factors. JPMorgan maintained its "Overweight" rating on WUXI APPTEC, reiterating it as a top pick within the Chinese CXO sector. The H-share target price was raised from HK$150 to HK$172, while the A-share target was increased from 150 yuan to 155 yuan.
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