在宏观不确定性中，需求依然强劲

Resilient demand amid macro uncertainties WuXi Bio reported financial results for 2025, withrevenue increasing by16.7%YoYandadj. attributable net profitrising by17.9% YoY. Revenue and adj. netprofit exceeded our estimates by 1.2% and 9.6%, respectively. Backlog grew by28.3% YoY to reach US$23.7bn by the end of 2025, marking the secondconsecutive year of accelerated growth. Mgmt. initiated guidance for 2026, Target PriceHK$39.00(Previous TPHK$35.60)Up/Downside17.7%Current PriceHK$33.14 China Healthcare Resilient global demand for WuXi Bio’s high-quality service.In 2025,the Company added 209 new projects, representing asolid38.4% YoYincrease. Among these, 186 were pre-clinical projects, up 42% YoY, whichclearly reflects the strong appetite for early-stage R&D services from globalclients. More importantly, the Company's bi-& multi-specific antibody andXDC businesses continued to serve as critical growth engines.Bolstered bythree potentially blockbustercommercial projectsin the pipeline, revenuefrom bi-& multi-specifics skyrocketed by 120% YoY in 2025, contributingnearly 20% of the total revenue. Similarly, XDC segment maintained its rapidgrowth momentum, with revenue increasing by 46.7% YoYalongside a Jill WU, CFA(852) 3900 0842jillwu@cmbi.com.hk Benchen HUANG, CFAhuangbenchen@cmbi.com.hk Robust operations to hedge against macroheadwinds.WhileMgmt.cautioned about potential negative impacts from FX fluctuations in 2026, weanticipate the Company will leverage its robust operational efficiency tooffsetthese headwinds through three key avenues:1)High-marginmilestone revenue: leveraging its formidable early-stage R&D capabilities,the Company's“R”services generated US$150mn in upfront and milestonepayments in 2025, significantly boostingoverall profitability.We expect suchrevenueto continue making a substantial contribution to the bottom line in2026. 2)Improvingcapacity utilization: driven by the continuousprogressof Source: FactSet Maintain BUY.To reflectan improved growth visibility,we raise our DCF-based TP from HK$35.6 to HK$39.00 (WACC: 9.32%, terminal growth: 2.00%,both unchanged). We forecast WuXi Bio’s revenue to grow by 14.6%/ 16.3%/15.0% YoY and adj. attributable net profit to increase by 18.7%/ 17.4%/ 13.6% Disclosures& Disclaimers Analyst Certification Theresearch analyst who is primary responsible for the content of this research report, in whole or in part, certifies that withrespect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect hisor 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 confirmsthat neither the analyst nor 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 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 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 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 consequential, incurred in relying on the information contained in this report.Anyonemaking use of the information contained in this report does so entirely at their own risk. CMBIGMhas exerted everyeffort in its capacity to ensure, but not to guarantee, their accuracy, completeness, timeli