Economic Information Daily (25th) reported that WuXi Biologics (02269) is currently up 2.2%, trading at HK$53.05. The stock has traded approximately 3.52 million shares, amounting to HK$185 million, with a daily high of HK$53.3 and a low of HK$51.6.
Goldman Sachs' research report stated that WuXi Biologics' management reiterated strong growth in order backlog, with total order backlog reaching $25.1 billion, a 24% year-on-year increase. Among this, the three-year order backlog increased by about 30% year-on-year to $5.5 billion, enhancing confidence in medium-term growth visibility. The firm maintains a target price of HK$55.8 and a "neutral" rating.
Additionally, manufacturing remains a key long-term growth engine. Management reaffirmed its outlook for an approximately 20% compound annual growth rate in revenue over the next three years, with research business growing around 20%-30%, development business growing in the low to mid-teens, and manufacturing business growing approximately 30%, reinforcing its view that manufacturing will continue to be the primary profit driver.
Management also expects structural margin expansion, driven by improved utilization rates, enhanced productivity, and an increasing proportion of higher-value technology platform offerings. Artificial intelligence drug discovery (AIDD) could provide additional long-term demand momentum by accelerating biologics and antibody-drug conjugate (ADC) candidates into development and manufacturing stages.
Currently, the Hang Seng Index stands at 24,305, down 456 points or 1.8%, with turnover on the main board exceeding HK$45 billion. The Hang Seng China Enterprises Index is at 8,098, down 167 points or 2%. The Hang Seng Tech Index is at 4,252, down 108 points or 2.5%. (vs)
Goldman Sachs' research report stated that WuXi Biologics' management reiterated strong growth in order backlog, with total order backlog reaching $25.1 billion, a 24% year-on-year increase. Among this, the three-year order backlog increased by about 30% year-on-year to $5.5 billion, enhancing confidence in medium-term growth visibility. The firm maintains a target price of HK$55.8 and a "neutral" rating.
Additionally, manufacturing remains a key long-term growth engine. Management reaffirmed its outlook for an approximately 20% compound annual growth rate in revenue over the next three years, with research business growing around 20%-30%, development business growing in the low to mid-teens, and manufacturing business growing approximately 30%, reinforcing its view that manufacturing will continue to be the primary profit driver.
Management also expects structural margin expansion, driven by improved utilization rates, enhanced productivity, and an increasing proportion of higher-value technology platform offerings. Artificial intelligence drug discovery (AIDD) could provide additional long-term demand momentum by accelerating biologics and antibody-drug conjugate (ADC) candidates into development and manufacturing stages.
Currently, the Hang Seng Index stands at 24,305, down 456 points or 1.8%, with turnover on the main board exceeding HK$45 billion. The Hang Seng China Enterprises Index is at 8,098, down 167 points or 2%. The Hang Seng Tech Index is at 4,252, down 108 points or 2.5%. (vs)
