JPMorgan Raises WUXI BIO Target Price to HK$51 Following Strong Earnings Beat and Robust Order Pipeline

Stock News
Feb 13

JPMorgan has released a research report indicating that WUXI BIO's (02269) 2025 earnings forecast exceeded both market consensus and the bank's own expectations. The firm has raised its target price from HK$37 to HK$51 and extended the target horizon by six months to December 2026, maintaining an "Overweight" rating. The company expects full-year revenue to reach RMB 21.8 billion, representing a year-on-year increase of 16.7%, which is broadly in line with market consensus and JPMorgan's forecast. Net profit is projected to be RMB 4.9 billion, approximately 11% and 17% higher than market consensus and JPMorgan's estimates, respectively. After adjusting for one-time costs, non-IFRS net profit is expected to rise 22% to RMB 6.59 billion. This earnings preview, combined with the strong project momentum highlighted at a recent JPMorgan global healthcare conference, strengthens the bank's confidence in WUXI BIO's growth prospects for this year and beyond. JPMorgan has raised its sales forecasts for 2025 to 2027 by 2% to 5%, and for 2028 and beyond by 6% to 9%, due to an anticipated improvement in new order intake. The bank now forecasts sales growth of 17.3% and 18.0% for 2026 and 2027, respectively. Due to gross margin expansion exceeding expectations, JPMorgan has also increased its gross margin assumptions by 2 to 3 percentage points, projecting gross margins of 46.0%, 46.2%, and 46.5% for 2025, 2026, and 2027. These updates translate to an increase of 13% to 23% in earnings per share forecasts for 2025 through 2027. JPMorgan now forecasts adjusted net profit attributable to shareholders will grow by 17.4% and 20.9% in 2026 and 2027, respectively.

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