Goldman Sachs released a research report stating that the market is expected to react positively to WUXI APPTEC's (02359) strong earnings performance and new order momentum, though concerns may arise over slower growth in TIDES (oligonucleotides and peptides) order backlog.

WUXI APPTEC reported Q3 revenue of RMB 12.1 billion, up 15.3% year-over-year, or 19.7% growth when calculated on a continuing operations basis. Notably, the TIDES business surged 91% year-over-year, accounting for 23% of total revenue.

Goldman Sachs set a 12-month target price of HK$109.6 for WUXI APPTEC's H-shares, based on an 18x forward P/E ratio, while maintaining a target price of RMB 105.6 for its A-shares (603259.SH).

The report highlighted that WUXI APPTEC's management raised its full-year 2025 revenue guidance to RMB 43.5–44.0 billion (previously RMB 42.5–43.5 billion), with continuing operations revenue growth revised to 17%–18% (from 13%–17%). The bank also expects improved adjusted non-IFRS net margins.

Goldman Sachs noted that WUXI APPTEC's Q3 capital expenditure reached RMB 1.47 billion (RMB 3.57 billion for the first nine months). The full-year capex budget was lowered to RMB 5.5–6.0 billion (from RMB 7.0–8.0 billion) due to extended settlement cycles for certain projects. Consequently, free cash flow guidance was raised to RMB 8.0–8.5 billion (from RMB 5.0–6.0 billion). Management reaffirmed its commitment to expanding global production capacity.