Analysts at Daiwa have initiated coverage on WUXI XDC (HKEX: 02268) with a 'Buy' rating and a target price of HK$78, positioning it as a preferred choice within China's CXO industry. The report highlights that WUXI XDC is a global leader in Antibody-Drug Conjugate (ADC) contract research, development, and manufacturing (CRDMO), and stands as the largest pure-play ADC CRDMO firm globally, holding an estimated 24% market share in 2025.

Daiwa expects the company to continue gaining market share, benefiting from the rapidly expanding ADC outsourcing market and its comprehensive end-to-end CRDMO service capabilities.

The firm's financial projections for WUXI XDC forecast revenue reaching RMB 7.907 billion, RMB 10.46 billion, and RMB 13.594 billion for 2026, 2027, and 2028, respectively, representing year-on-year growth of 33%, 32%, and 30%.

Adjusted non-IFRS net profit is estimated at RMB 2.117 billion, RMB 2.722 billion, and RMB 3.611 billion for the corresponding years.

Furthermore, Daiwa anticipates an adjusted earnings per share compound annual growth rate of 31% from 2026 through 2028.