Goldman Sachs has released a research report indicating that Wuxi Apptec (02359) delivered robust performance in the first quarter of 2026, with both revenue and earnings significantly exceeding the bank's and market expectations. During the period, revenue increased by 28.8% year-on-year to RMB 12.44 billion, with revenue from continuing operations rising 39.4% year-on-year. This growth was primarily driven by the chemical business (WuXi Chemistry) and testing business (WuXi Testing), which saw year-on-year increases of 43.7% and 27.4%, respectively.

The bank set a target price of HK$149.70 for Wuxi Apptec's H-shares, based on a 12-month forward price-to-earnings ratio of 19 times. For Wuxi Apptec's A-shares (603259.SH), the target price was set at RMB 137.30. Both ratings were maintained at "Buy" and included in the Conviction List.

Goldman Sachs noted that in February of this year, it upgraded Wuxi Apptec's rating to "Buy," reflecting increased confidence in the company's profit outlook for 2026 and greater clarity on its growth prospects for 2027. In early April, the stock was added to the Conviction List. The strong first-quarter results further reinforced the investment thesis, supported by the company's solid order backlog, continued capacity expansion in the TIDES business, accelerated growth in small-molecule drug R&D and marketing momentum, and the increasing contribution of oral small-molecule GLP-1 inhibitor projects as key growth drivers starting in 2026. With the growing number of late-stage R&D projects and commercialized assets, these factors are expected to enhance medium-term revenue and earnings visibility.