Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research Report>CCBI Lowers TP of WUXI BIO (02269.HK) to $21; Strong Core Biz Growth
Recommend 13 Positive 17 Negative 12 |
||||
|
||||
|
CCBI noted in a report that sales of WUXI BIO (02269.HK) in 2H23 increased 6% YoY, in line with the broker's expectations. However, net profit fell 39.9% in 2H23, below the broker's forecast, as the company incurred higher marketing expenses to acquire new customers and logged higher operating expenses due to the expansion of its administrative and IT infrastructure. Nevertheless, the broker found WUXI BIO's new project signing situation in 1Q24 good. The company signed 25 new projects in 1Q24, higher than the same period last year. Half of the new projects were signed after the introduction of the US Biosecure Act. Additionally, half of the new projects were signed by clients from the US. CCBI pointed out that the slowdown in biotech financing has led to a slowdown in the growth of WUXI BIO's backlog. As a result, the broker lowered its average sales forecast for 2024 to 2026 by 14.6%. The company's business growth this year will come mainly from its core research and development business, which the broker expected to grow by 10.2% YoY. As for operating expense items, the average upward revision of 8.8% by the broker is mainly due to the company's marketing activities to acquire new customers and increased investment in overseas production capacity. Taking into account the above factors, CCBI dropped its target price on WUXI BIO from $25 to $21 and maintained its Outperform rating. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
