UBS has released a research report raising its earnings per share forecast for Wuxi Apptec (02359) by 23.4% for this year, with estimates for 2024 to 2028 adjusted upward by 0.3% to 0.9%. The target price for the stock has been increased from HK$136.1 to HK$138.4, maintaining a "Buy" rating.

Wuxi Apptec reported third-quarter revenue of RMB 12.1 billion, up 15% year-on-year, surpassing both UBS and market expectations of RMB 11.4 billion and RMB 11.5 billion, respectively. Net profit rose 53% year-on-year to RMB 3.5 billion, exceeding UBS and market projections of RMB 3.3 billion and RMB 3.1 billion. Non-IFRS net profit grew 42% year-on-year to RMB 4.2 billion, while adjusted non-IFRS gross margin improved by 6.1 percentage points to 44.5%. The company's backlog of ongoing operations increased 41% year-on-year to RMB 59.9 billion by the end of Q3.

Wuxi Apptec also announced the divestment of its clinical contract research organization/site management organization business, with an initial transaction value of RMB 2.8 billion. UBS views this sale as favorable, allowing the company to focus on its core contract research, development, and manufacturing organization (CRDMO) business and global expansion.