CCB International has raised its target price for WUXI APPTEC (02359) by 7.4% from HK$122 to HK$131, maintaining an "Outperform" rating. The firm noted that despite the potential enactment of the "U.S. Biosecurity Act 2.0," the company continues to expand its drug portfolio beyond providing client services for GLP-1-targeted drugs.

WUXI APPTEC's Q3 2025 results exceeded expectations, with net profit rising to RMB 3.5 billion from RMB 2.3 billion in the same period in 2024. Total revenue grew 15% year-on-year to RMB 12.1 billion. The chemical conjugates (TIDES) segment contributed significantly to growth, with revenue surging 121% YoY to RMB 7.8 billion in the first three quarters of 2025, driven by a 17% annual increase in TIDES backlog.

Given sustained overseas demand for TIDES, CCB International has raised its total revenue forecasts for 2026 and 2027 by 2% and 3% to RMB 51.9 billion and RMB 58.5 billion, respectively. Core profit expectations for 2026 and 2027 were also revised upward by 9% and 12% to RMB 15.3 billion and RMB 17.7 billion, reflecting improved gross margins and lower operating expense-to-sales ratios.