Morgan Stanley released a research report stating that WUXI APPTEC (02359, 603259.SH) reported a 15.3% year-on-year increase in Q3 revenue to RMB 12.1 billion, with net profit rising 53.3% to RMB 3.515 billion. Adjusted non-IFRS net profit grew 42% to RMB 4.22 billion, surpassing expectations. Revenue from chemical, testing, and biological businesses increased by 23%, 2%, and 6%, respectively.

The bank views the current share price as an attractive entry point, with the stock trading at around 20x projected 2026 P/E—below the industry median of 26x. It maintains an "Overweight" rating with an A-share target price of RMB 105.

The company raised its full-year revenue growth guidance for ongoing operations from 13%-17% to 17%-18%. Morgan Stanley noted this adjustment mirrors its H1 approach, with a conservative upper-bound revision but a more significant 4-percentage-point lift to the lower bound. With cumulative revenue up 22.5% YoY for the first nine months, the bank believes full-year performance could meet or exceed the updated guidance.