WUXI APPTEC (02359) reported significantly better-than-expected financial results for the first quarter of 2026, with both revenue and profit surpassing the estimates of the firm and the broader market. Revenue for the period increased by 28.8% year-on-year to RMB 12.44 billion. Revenue from continuing operations grew by 39.4%, primarily driven by strong performances in the Chemistry business, which rose 43.7%, and the Testing business, which increased 27.4%.

Goldman Sachs has set a target price of HK$149.7 for WUXI APPTEC's H-shares, based on a 12-month forward price-to-earnings ratio of 19. For the company's A-shares (603259.SH), the target price is RMB 137.3. The investment bank maintains a "Buy" rating on both and has included the stock in its conviction list.

The firm upgraded its rating on WUXI APPTEC to "Buy" in February, reflecting increased confidence in the company's 2026 earnings outlook and greater clarity on its growth prospects for 2027. The stock was added to the conviction list in early April. The strong first-quarter performance further reinforces the investment thesis, supported by the company's solid order backlog, ongoing expansion of TIDES business capacity, accelerating momentum in small-molecule drug R&D and marketing, and growing contributions from oral small-molecule GLP-1 inhibitor programs starting in 2026.

As the number of late-stage R&D projects and commercialized assets continues to grow, these factors are expected to enhance medium-term revenue and earnings visibility.