CICC: Maintains Buy rating on WuXi AppTec and Huadong Medicine and raises target price to HK$75.

Zhongjin released a research report stating that considering the high demand for global ADC research and production and the continued consolidation of the leading position of Pharmaron in the industry, the adjusted net profit forecast for 2025/2026 was raised by 6.3%/10.2% to 1.69/2.33 billion yuan. The current stock price corresponds to an adjusted P/E ratio of 40.3x/28.7x for 2025/2026. Considering the recent upward shift in valuation of the pharmaceutical sector, the bank raised its target price by 66.7% to 75 Hong Kong dollars, corresponding to an adjusted P/E ratio of 49.1x/35.0x for 2025/2026, with an upward potential of 21.9% compared to the current stock price.