Nomura: Expects WuXi AppTec to exceed market expectations in revenue this year, raises its target price for the A-share and H-share and gives a "buy" rating.

Nomura's research report stated that, based on the positive earnings announcement by WuXi AppTec, it is expected that the revenue for the fourth quarter of 2025 will increase by 9.2% year-on-year to 11.7 billion yuan, and the net profit will increase by 142% to 7.1 billion yuan. Looking ahead to the fiscal year 2026, the bank expects the company's revenue to increase by 16% year-on-year to 52.6 billion yuan, higher than the market's expectation of 51.1 billion yuan, due to strong performance in the chemical business; profitability is expected to increase by 3% year-on-year to 19.6 billion yuan. In terms of business segments, the bank expects TIDES and later-stage development and manufacturing business revenue in fiscal year 2026 to increase by 55% and 10% respectively, to 17.1 billion yuan and 21.6 billion yuan. The growth of the TIDES business is supported by continued demand growth and the company's large-scale functional production capacity of 100,000 liters. The bank has raised WuXi AppTec's H-share target price from 132.8 Hong Kong dollars to 157.07 Hong Kong dollars, and the A-share target price from 120.85 yuan to 142.93 yuan, with a "buy" rating.