According to recent reports, GLMS SEC has issued a research note maintaining a “Buy” rating on WUXI XDC (02268), a leader in the ADC CXO industry with a strong presence in the global market. Given the rapid expansion of the overall industry, the company is anticipated to strengthen its leading market position due to its superior technological capabilities and product delivery quality. With a focus on the high-growth ADC CXO sector, WUXI XDC reported a significant year-on-year increase in orders for the first half of 2025 with a steady release of reserved production capacity. Consequently, GLMS SEC has raised its earnings forecast for the company.
The firm projects the company's revenues for 2025, 2026, and 2027 to reach 5.99 billion, 8.24 billion, and 10.51 billion yuan, respectively, representing year-on-year growth of 47.7%, 37.7%, and 27.5%. The forecast for net profit attributable to shareholders is expected to be 1.51 billion, 2.06 billion, and 2.67 billion yuan, reflecting growth rates of 41.5%, 36.2%, and 29.4% respectively. Earnings per share (EPS) is expected to be 1.23, 1.68, and 2.17 yuan.
In the first half of 2025, the company achieved revenue of 2.70 billion yuan (up 62.2% year-on-year) and a gross profit of 980 million yuan (up 82.2% year-on-year). Adjusted net profit, excluding interest and expenses, was 730 million yuan (up 69.6% year-on-year), while including interest income and expenses, it amounted to 800 million yuan (up 50.1% year-on-year), with a net profit of 750 million yuan (up 52.7% year-on-year). The strong order backlog supports solid performance growth, showcasing the company's exceptional capabilities in a high-growth niche.
As of the first half of 2025, the company’s outstanding order total reached 1.33 billion USD (up 57.9% year-on-year), with newly signed contracts growing 48.4% year-on-year, particularly in North America, highlighting the company’s competitive advantage amid fluctuating global trade policies. According to the performance briefing, the global ADC market is expected to reach a size of 13.2 billion USD in 2024, with a compound annual growth rate (CAGR) of 34.0% from 2020 to 2024, projected to grow rapidly to 66.2 billion USD by 2030, with an outsourcing rate of about 60% anticipated from 2024 to 2030.
In the emerging ADC outsourcing services sector, the company increased its market share from 9.9% in 2022 to 22.2% in the first half of 2025, further solidifying its leading position in the industry, and it collaborates with 13 out of the top 20 global pharmaceutical companies. The project funnel is continuously expanding, with capital expenditures expected to surpass prior growth levels. Under the “Empower - Follow - Win Molecule” strategy, the company signed 37 new iCMC projects in the first half of 2025 (including 13 winning molecule projects) and added 3 new PPQ projects, maintaining a robust expansion trend in its comprehensive project cooperation funnel.
To meet the growing outsourcing demands of global clients, the company plans to invest 1.56 billion yuan in capital expenditures for 2025 (approximately 900 million yuan for its Singapore base and about 450 million yuan for its Wuxi base), with total capital expenditures projected to exceed 7 billion yuan by 2029. The new production capacity will include conjugated raw solutions, conjugated formulations, and payload linkers. Currently, the company has initiated expansion efforts at its Wuxi and Shanghai bases, along with the design and planning of a new base in Jiangyin.
Risk factors include increased industry competition, market demand lower than expected, geopolitical risks, and potential underperformance in capacity expansion.