On July 25, WuXi Biologics rose over 8% in Hong Kong. The company expects its first-half net profit to increase by over 56% year-on-year.

In terms of news, WuXi Biologics released a performance forecast, expecting first-half revenue to grow by about 16%, with profit and profits attributable to shareholders increasing by approximately 54% and 56% year-on-year, respectively. The expected performance growth is mainly due to the successful implementation of the "follow and win the molecule" strategy, an industry-leading tech platform, best-in-class project delivery times, and an excellent track record of project execution, all driving revenue growth for the group. The group expands its service scope in the biologics industry based on rapidly developing technology platforms involving ADCs and bispecific antibodies, providing services including research discovery, pre-IND development, clinical and commercial production. Revenue growth also arises from research services generated by multiple advanced technologies and utilization of existing and new capacity.

Morgan Stanley released a research report stating that WuXi Biologics performed better than expected in the first half of the year, driven by a 3.6 percentage point annual expansion in gross profit margin. The firm believes the gross profit margin expansion is mainly due to increased service projects and improved utilization rates. The better-than-expected first-half financial report also provides buffer for the company's full-year revenue growth guidance of 12-15% and profitability improvement. The target price is set at HKD 35 with an "overweight" rating.