1Q26结果：小分子D&M推动整体增长

1Q26 results: small molecule D&M fuelling overall growth WuXi AppTec releasedbetter-than-expected1Q26 financial results.Revenuegrew by 28.8% YoY to RMB12.4bnwithcontinuing operationsrevenueincreasingby 39.4% YoY, while adj.non-IFRS attributable net profit surged 71.7% YoY toRMB4.6bn.1Q26 revenue/adj.net profit represent 24.1%/25.6% of our full-yearforecasts, respectively, significantly higher thanthe historical average of 18-20%.As of 1Q26, backlog for continuing operations grew by 23.6% YoY(+29% YoYifexcl.FX fluctuations)to RMB59.8bn, withnew orderssignedin 1Q26 growingbyover25%. Mgmt.maintainedfull-year guidance, projecting 2026 revenue toreach Target PriceRMB143.00(Previous TPRMB133.00)Up/DownsideCurrent PriceRMB110.57 ChinaHealthcare Jill WU, CFA(852) 3900 0842jillwu@cmbi.com.hk Benchen HUANG, CFAhuangbenchen@cmbi.com.hk CRDMO model to capture global blockbuster opportunities.Within thismodel, drug discovery and development servicescontinuously funnelprojectsto downstream.The Company delivered +420,000 new compoundsover thepast 12 months,converted 83 projects fromR to D, and added nine new PhIIIand commercial projectsin 1Q26. This funnel model, which covers a widerange of therapeutic areas and a large customer base globally, allows theCompany to identifyindustry trends and build capacity in advance. As aresult, thisapproach has enabled WuXi AppTec to capitalize on commercialopportunities formultipleglobal blockbuster products, including oral COVID-19 drugs and peptides/ small-molecule GLP-1 drugs.Benefiting fromoral Continued capacity expansion.Driven by growing global demand, WuXiAppTec plans to bring the construction of new Changzhou site ahead ofschedule, which will house both small molecule and TIDES capacity. Mgmt.targetsthe total solid-phase synthesis reactor volume to reach 130k liters bythe end of 2026, up from 100k liters at the end of 2025.Despite theuncertaintiesfrom the Middle East, the strategic cooperation agreementsigned with the Saudi government last Oct is proceedingas planned,a key Source: FactSet Maintain BUY.To factor into thestrong momentum of small molecule D&Mbusiness, we lift our earnings forecasts,expectingrevenueto grow by 15.2%/16.3%/ 14.8% YoY(for continuing operations: 20.6%/ 16.3%/ 14.8% YoY)and adj.net profit to grow by 26.2%/ 18.0%/ 15.8% YoY in 2026E/ 27E/ 28E,respectively.Hence,we raise our DCF-based TP from RMB133.00 to Disclosures& Disclaimers Analyst Certification The research analyst who is primary responsible for the content of this research report, in whole or in part, certifies thatwith 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 analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities andFutures 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 coveredin this report. CMBIGM Ratings BUY: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 potential loss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary of China Merchants Bank) 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 an offer or solicitation tobuy or sell any security or any interest insecuritiesor enter into any transaction.NeitherCMBIGMnor any of its affiliates, shareh