强劲的盈利增长，通过战略性收购来提升产能
acquisition to enhance capacity Strong earnings growth with strategicacquisition to enhance capacity WuXi XDCissued a positive profit alert on its 2025 financial performance,expecting revenue to increase by atleast 45% YoY andnet profit to grow bymorethan 38% YoY. Notably,the Company expectedadjusted net profit before interestincome and expensesto rise by more than 45% YoY andby over 65% YoYin2025if excluding the impact of foreign exchange fluctuations.In 2025, WuXi XDCsigned a record-high 70 new integratedprojects,up by32% YoY. PPQprojectssurged by 125% YoY to reach 18, indicating strongpotentialforcommercial Target Price(Previous TPUp/DownsideCurrent Price China HealthcareBenchen HUANG, CFAhuangbenchen@cmbi.com.hk Jill WU, CFA(852) 3900 0842jillwu@cmbi.com.hk Global demand for XDC drug R&D and manufacturingcontinuestogrowrapidly.In 2025, WuXi XDCsigned a record-high 70 new integratedprojects,up 32% YoY. Among these 70 projects, clients from China and the USwerethe primary sources. Additionally, 22 of these projects were transferred fromexternal parties, highlighting WuXi XDC’s increasing client trust in the globalXDC CDMO industry. Furthermore, novel modalitiesXDC drugs contributedsignificantly among the 70 newly signed projects, with bispecific ADCsaccounted for~20%, dual-payload ADCs for~5%, and other types of XDCsfor~17%, demonstrating WuXi XDC’s active collaboration with clients in Acquisition ofBioDlinkset to strengthenproduction capacity.WuXiXDC plans to acquire at least 60%interests inBioDlinkthrough a cash tenderoffer at HK$4.00 per share, representing a 99% premium overthelastclosingpriceofBioDlinkon 24 Dec 2025.BioDlinkis a leading domesticADC CDMOservice providerwith CDMO-related revenue of RMB207mn in 2024. Beyondexpanding WuXi XDC’s client base, the acquisition willrapidly enhance theCompany’s drug production capacityto meet strong demandin the moment,particularly for ADC DS and DP, which are currently in short supply.BioDlink Source: FactSet MaintainBUY.We raiseourtarget price to HK$88.0to reflecttheenhancedglobal competitiveness and positive demand outlookfor WuXi XDC.Weforecast WuXi XDC’srevenue to grow by 45.7%/ 36.6%/ 31.7% YoY andadjusted net income toincrease by 34.9%/ 38.4%/ 32.9% YoY in 2025E/ 26E/ Disclosures& Disclaimers Analyst Certification The research analyst whois primary responsible for the content of this research report, in whole or in part, certifies that with respect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analystnor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies covered in this report. CMBIGM RatingsBUY : Stock with potential return of over 15% over next 12 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock with potentialloss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM :Industry expected to outperform the relevant broad market benchmark over next 12 months:Industry expected to performin-line with the relevant broad market benchmark over next 12 months:Industry expected to underperform the relevant broad market benchmark over next 12 months Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on the or its affiliate(s) to whom it is distributed.This report is not and should not be construed as anoffer or solicitation to buy or sell any security or any interest insecurities or enter into any transaction.NeitherCMBIGMnor any of its affiliates, shareholders, agents, consultants, directors, officers or employees shall beliable for any loss, damage or expense whatsoever, whether direct or c
