【行业研究报告】药明合联-Strong earnings growth with strategicacquisition to enhance capacity

16Jan202616Jan2026CMBInternationalGlobalMarkets|EquityResearch|CompanyUpdateWuXiXDC(2268HK)WuXiXDC(2268HK)-StrongearningsgrowthwithstrategicacquisitiontoenhancecapacityStrongearningsgrowthwithstrategicacquisitiontoenhancecapacityWuXiXDCissuedapositiveprofitalertonits2025financialperformance,expectingrevenuetoincreasebyatleast45%YoYandnetprofittogrowbymorethan38%YoY.Notably,theCompanyexpectedadjustednetprofitbeforeinterestincomeandexpensestorisebymorethan45%YoYandbyover65%YoYin2025ifexcludingtheimpactofforeignexchangefluctuations.In2025,WuXiXDCsignedarecord-high70newintegratedprojects,upby32%YoY.PPQprojectssurgedby125%YoYtoreach18,indicatingstrongpotentialforcommercialmanufacturing.Toaddressgrowingclientdemand,WuXiXDCannouncedacashoffertoacquireatleast60%interestsinBioDlink(东曜药业,1875HK,NR),markingacriticalstepinfurtherstrengtheningitsmanufacturingcapacity.GlobaldemandforXDCdrugR&Dandmanufacturingcontinuestogrowrapidly.In2025,WuXiXDCsignedarecord-high70newintegratedprojects,up32%YoY.Amongthese70projects,clientsfromChinaandtheUSweretheprimarysources.Additionally,22oftheseprojectsweretransferredfromexternalparties,highlightingWuXiXDC’sincreasingclienttrustintheglobalXDCCDMOindustry.Furthermore,novelmodalitiesXDCdrugscontributedsignificantlyamongthe70newlysignedprojects,withbispecificADCsaccountedfor~20%,dual-payloadADCsfor~5%,andothertypesofXDCsfor~17%,demonstratingWuXiXDC’sactivecollaborationwithclientsincutting-edgeareasofconjugateddrugR&Ds.Moreover,PPQ-stagecontractsin2025increasedby125%YoYto18,signalingstronggrowthpotentialincommercial-stagebusiness.Basedonthestrong“D-end”enablingcapabilitiesandencouragingcommercialbusinesstrends,mgmt.ofWuXiXDCexpectsthat,by2030,20%oftheCompany’srevenuewillcomefromnovelXDCprojectsandanother20%fromcommercial-stageprojects.AcquisitionofBioDlinksettostrengthenproductioncapacity.WuXiXDCplanstoacquireatleast60%interestsinBioDlinkthroughacashtenderofferatHK$4.00pershare,representinga99%premiumoverthelastclosingpriceofBioDlinkon24Dec2025.BioDlinkisaleadingdomesticADCCDMOserviceproviderwithCDMO-relatedrevenueofRMB207mnin2024.BeyondexpandingWuXiXDC’sclientbase,theacquisitionwillrapidlyenhancetheCompany’sdrugproductioncapacitytomeetstrongdemandinthemoment,particularlyforADCDSandDP,whicharecurrentlyinshortsupply.BioDlinkoperatestwomAbfacilitieswithcapacitiesof500–2,000L/batch,threeDSfacilitiescapableofproducingover800kgADCDSannually,andthreeDPfacilitieswithanannualcapacityexceeding8mnvials(forcomparison,WuXiXDC’sDP3facilityhasanannualcapacityof8mnvials).MaintainBUY.WeraiseourtargetpricetoHK$88.0toreflecttheenhancedglobalcompetitivenessandpositivedemandoutlookforWuXiXDC.WeforecastWuXiXDC’srevenuetogrowby45.7%/36.6%/31.7%YoYandadjustednetincometoincreaseby34.9%/38.4%/32.9%YoYin2025E/26E/27E,respectively.AsthetenderofferforBioDlinkisstillongoing,wehavenotyetincorporatedanyfinancialimpactsfromconsolidatingBioDlink.TargetPriceHK$88.00(PreviousTPHK$74.00)Up/Downside20.7%CurrentPriceHK$72.90ChinaHealthcareBenchenHUANG,CFAhuangbenchen@cmbi.com.hkJillWU,CFA(852)39000842jillwu@cmbi.com.hkStockDataMktCap(HK$mn)87,366.6Avg3mthst/o(HK$mn)302.652wHigh/Low(HK$)85.10/27.90TotalIssuedShares(mn)1198.4Source:FactSetShareholdingStructureWuXiBiologics50.7%WuXiAppTec18.6%Source:HKExSharePerformanceAbsoluteRelative1-mth6.0%0.9%3-mth4.7%0.8%6-mth49.5%36.6%Source:FactSet12-mthPricePerformanceSource:FactSetEarningsSummary(YE31Dec)FY23AFY24AFY25EFY26EFY27ERevenue(RMBmn)2,1244,0525,9068,06510,619YoYgrowth(%)114.490.845.736.631.7Adjustednetprofit(RMBm4121,1741,5842,1922,914YoYgrowth(%)112.1184.834.938.432.9EPS(Adjusted)(RMB)0.380.911.171.622.15ConsensusEPS(RMB)nana1.301.772.34P/E(Adjusted)(x)171.672.056.240.630.5Source:Companydata,Bloomberg,CMBIGMestimates