Wuxi Biologics' 2H Gross Profit Margin Likely to Be Lower -- Market Talk

Dow Jones03-01

0330 GMT - Wuxi Biologics (Cayman)'s 2H gross profit margin could be lower due to the potential drag from the ramp-up of new production facilities and higher revenue-contribution from low-margin manufacturing projects, Nomura analysts say in a research note. Nomura expects Wuxi Bio's 2H topline results to grow 4% on year but its net profit to retreat 36%. Wuxi Bio, which engages in contract research, remains highly exposed to geopolitical uncertainties, the analysts say. Nomura revises down its 2023 and 2024 revenue forecasts by 1.3% and 4.2%, respectively, considering potentially lower average sales prices due to stronger competition. The Japanese bank maintains a buy rating on Wuxi Bio, but lowers its target price to HK$53.65 from HK$58.44. Shares were last at HK$18.88. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

February 29, 2024 22:30 ET (03:30 GMT)

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Nomura revises down its 2023 and 2024 revenue forecasts by 1.3% and 4.2%, respectively, considering potentially lower average sales prices due to stronger competition. The Japanese bank maintains a buy rating on Wuxi Bio, but lowers its target price to HK$53.65 from HK$58.44. Shares were last at HK$18.88. 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Nomura expects Wuxi Bio's 2H topline results to grow 4% on year but its net profit to retreat 36%. Wuxi Bio, which engages in contract research, remains highly exposed to geopolitical uncertainties, the analysts say. Nomura revises down its 2023 and 2024 revenue forecasts by 1.3% and 4.2%, respectively, considering potentially lower average sales prices due to stronger competition. The Japanese bank maintains a buy rating on Wuxi Bio, but lowers its target price to HK$53.65 from HK$58.44. Shares were last at HK$18.88. 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