Investor attention is drawn to the half-year report from A-share CRO leader WuXi AppTec.

On August 3, WuXi AppTec announced a comprehensive upward revision to its full-year 2026 performance guidance. The company now expects total revenue for 2026 to be raised from the previous range of 51.3 billion to 53.0 billion yuan to a new range of 58.5 billion to 60.5 billion yuan. The year-on-year growth rate for revenue from continuing operations is also being lifted from 18%-22% to 35%-39%. For the second quarter, net profit came in at 6.429 billion yuan, compared to 4.652 billion yuan in the first quarter, marking a 38% sequential increase in Q2 net profit.

To better meet growing customer demand, WuXi AppTec is further accelerating its global capacity deployment and has initiated the construction of a new base in Changzhou ahead of schedule. The company has also raised its expected 2026 capital expenditure from 6.5 billion to 7.5 billion yuan to a new range of 7.5 billion to 8.5 billion yuan. With business growth and efficiency improvements, the forecast for adjusted free cash flow in 2026 has been increased from 10.5 billion to 11.5 billion yuan to 13.5 billion to 14.5 billion yuan. Additionally, the company plans to distribute a cash dividend of 5.1 yuan (including tax) for every 10 shares held by all shareholders.

The company continues to focus on and strengthen its CRDMO business model, driving steady revenue growth. It is also actively optimizing production processes and operational efficiency, while the increasing volume of late-stage clinical and commercial projects is boosting capacity utilization, thereby enhancing overall profitability. Notably, among the August stock picks from over 30 securities firms, WuXi AppTec received as many as 8 recommendations from institutions.

Where to start

Zheshang Securities believes that, under the leading CRDMO business model, order intake and performance growth are likely to continue surpassing expectations. The company, through its highly recognized domestic leading drug discovery business, has successfully secured a large number of early-stage client orders. It is steadily funneling these orders toward its small molecule CDMO, testing, and biology services, which is anticipated to achieve sustainable and higher-than-expected order growth in the market.

Why Just 10 ASX 200 Shares?

According to available information, WuXi AppTec is headquartered at 288 Fute Zhong Road, Waigaoqiao Free Trade Zone, Pudong New Area, Shanghai, with an additional office at Suite 1910, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong. The company was established on December 1, 2000, and listed on the Shanghai Stock Exchange on May 8, 2018. Its core business involves providing a comprehensive, fully integrated platform for the discovery, research, development, and production of small molecule chemical drugs, serving global pharmaceutical companies across the entire new drug development chain. As of the close of trading on August 3, WuXi AppTec’s latest share price stood at 128.5 yuan, with a market capitalization of 389.8 billion yuan, and a year-to-date gain of 44%.