Daiwa: Raises Target Price of PharmaBio by 17%, Maintains 'Buy' Rating

Jinshi data news on February 18th, Daiwa issued a report pointing out that the target price of WuXi Biologics (02269.HK) was raised by 17.4%, from HK$23 to HK$27, reflecting a 4-5% upward revision of the company's forecast for 2024-2026, and maintaining a "buy" rating. Daiwa expects the company's revenue to rise by about 11% to 9.4 billion yuan in the second half of 2024, with a 1% increase in the first half, mainly reflecting the strong rise in the number of projects and the recovery of biotechnology funds. The company added 151 new projects in 2024, with 90 coming from the United States. It is also expected that the gross profit margin in the second half of 2024 will improve by 4.7 percentage points to 42.9% compared to the same period last year. For the entire year of 2024, Daiwa expects revenue to rise by 6% year-on-year, adjusted net profit to rise by 11%, and the company's guidance for the two is a 5%-10% rise.