Citigroup: WUXI XDC (02268) net profit in the first half of the year beats expectations, reiterates "buy" rating

Citibank released a research report stating that WUXI XDC (02268) reported a profit increase, with revenue expected to grow by over 60% year-on-year in the first half of the year according to International Financial Reporting Standards. Adjusted net profit (excluding interest income and expenses) is expected to increase by over 67%, with net profit increasing by more than 50%, outperforming market expectations for first-half revenue and net profit to grow by 52% and 26% respectively. Revenue meets the bank's expectations, while net profit exceeds the bank's forecast by 32%. The report points out that WUXI XDC management attributes the strong growth to high customer demand in the ADC industry, the company's high market share, and improved production facility utilization. The bank reaffirms its "buy" rating on WUXI XDC with a target price of HK$46.