Yao Mingkangde: 2025 fiscal year performance meets expectations, TIDES business drives growth, guidance revenue for 2026 fiscal year is 51.3-53 billion yuan.

Global Markets Research23 March 2026 Wuxi Apptec603259.SS 603259 CH EQUITY: HEALTH CARE & PHARMACEUTICALS CNY51.3-53.0bn revenue guided for FY26EQuick Note FY25 results in line: TIDES business drove growth Wuxi Apptec reported FY25 results on 23 March after market close: top line/bottom linegrew 16%/103% y-y to CNY45.5bn/CNY19.2bn (in line with its preliminary results, see ourreport:Quick Note - Wuxi Apptec (603259 CH) (Buy) - Upbeat performance in 4Q25).This suggests 4Q25 sales went up 9.2% y-y to CNY12.6bn, led by Wuxi Chemistry thatbooked +17.1% y-y growth to CNY10.5bn, of which the TIDES business contributed sales Research Analysts China Health Care &Pharmaceuticals Jialin Zhang, CFA, CPA - NIHKjialin.zhang@nomura.com+852 2252 6134 The company’s 4Q25 earnings grew 142.5% y-y to CNY7.08bn, on the back of: 1) ahigher gross margin of 47.4% (+6.6pp y-y, beat our estimate), driven by a higher salesproportion of the high-margin TIDES business (which we reckon has a higher than 60%gross margin), and 2) higher other gains of c.CNY4.1bn in 4Q25, majorly from the disposalof Wuxi XDC (2268 HK, Buy). According to management, adjusted non-IFRS net profit As at end-FY25, the company had an order backlog of CNY58bn (+28.8% y-y), of whichmanagement expects to recognize CNY42.2bn in revenue in FY26E. FY26E topline guidance in-line/above our estimates/Bloomberg consensus: astrong one. Maintain Buy and TP of CNY142.93 For FY26E, management expects revenue from continuing businesses to grow 18%~22%y-y to CNY51.3bn~53bn(mid-point of which is largely in-line with our estimate ofCNY52.6bn, though above Bloomberg consensus of CNY51.2bn), and maintains a“stable” and “resilient” non-IFRS adjusted net profit margin (which was 32.9% in FY25). We view the FY25 results and FY26E guidance as in-line with our estimates and quiteimpressive on a high base; thus, we reaffirm our Buy rating and DCF-based (WACC of10.1%, terminal growth rate of 3.0%) TP of CNY142.93, which implies 62.8% upside. Thestock currently trades at 12.9x fully diluted FY26F EPS of CNY6.80. Production Complete: 2026-03-23 15:29 UTC Appendix A-1 This report has been produced by Nomura International (Hong Kong) Ltd. (NIHK), Hong Kong.SeeDisclaimersfor Nomura Group entity details. Analyst Certification I, Jialin Zhang, hereby certify (1) that the views expressed in this Research report accurately reflect my personal views about any or all of thesubject securities or issuers referred to in this Research report, (2) no part of my compensation was, is or will be directly or indirectly related tothe specific recommendations or views expressed in this Research report and (3) no part of my compensation is tied to any specific investment Issuer Specific Regulatory Disclosures The terms "Nomura" and "Nomura Group" used herein refer to Nomura Holdings, Inc. and its affiliates and subsidiaries, including NomuraSecurities International, Inc. ('NSI') and Instinet, LLC ('ILLC'), U. S. registered broker dealers and members of SIPC. Materially mentioned issuers Wuxi Apptec (2359 HK) Valuation MethodologyWe derive our target price of HKD157.07 based on DCF model, assuming WACC of 10.1% andterminal growth of 3.5%. The benchmark index for the stock is Hang Seng Index.Risks that may impede the achievement of the target priceDownside risks include: (1) growth slowdown due to potentialhigher competition or lower demand. (2) geopolitical tensions. Wuxi Apptec (603259 CH) Valuation MethodologyWe value the company at CNY142.93 based on DCF model with WACC of 10.1% and terminal growthrate of 3.5%. The benchmark index for the stock is SHSZ 300.Risks that may impede the achievement of the target priceDownside risks include: (1) growth slowdown due to potentialhigher competition or lower demand. (2) geopolitical tensions. Important Disclosures Online availability of research and conflict-of-interest disclosures Nomura Group research is available onwww.nomuranow.com/research, Bloomberg, Capital IQ, Factset, LSEG.Important disclosures may be read athttp://go.nomuranow.com/research/m/Disclosuresor requested from Nomura Securities International, Inc. The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, aportion of which is generated by Investment Banking activities. Unless otherwise noted, the non-US analysts listed at the front of this report arenot registered/qualified as research analysts under FINRA rules, may not be associated persons of NSI, and may not be subject to FINRA Rule Nomura Global Financial Products Inc. (NGFP) Nomura Derivative Products Inc. (NDP) and Nomura International plc. (NIplc) are registered withthe Commodities Futures Trading Commission and the National Futures Association (NFA) as swap dealers. NGFP, NDPI, and NIplc are Distribution of ratings (Nomura Group) The distribution of all ratings published by Nomura Group Global Equity Research is as follows: 5